Fraud in Asia-Pacific’s fastest-growing digital sectors is rising sharply, driven by sophisticated tactics involving deepfakes and synthetic identity documents, according to a new report from global verification provider Sumsub.
Healthtech recorded the highest year-on-year increase in fraud cases across the region with a 723% surge in the first quarter of 2025, while fintech followed with a 116% rise.
The spike in fraud coincides with accelerated digitalization in both sectors. The APAC fintech market is projected to grow from $450 billion in 2024 to $1.15 trillion by 2032, while digital health is forecast to reach $488.5 billion by 2033.
Fraudsters are increasingly using generative AI to create synthetic identities and deepfake content to bypass verification protocols, the report said.
Deepfake scams, which have extended into job applications, financial services, and digital onboarding, have surged significantly. Singapore saw a 1,500% increase in deepfake-related cases, while Hong Kong recorded a 1,900% jump over the past year.
Synthetic identity fraud, where attackers use a combination of real and fictitious information to forge non-existent personas, is also accelerating.
APAC recorded a 233% rise in such fraud, outpacing the 195% global average. Country-specific increases in synthetic document fraud included 291% in the Philippines, 209% in Hong Kong, 188% in Thailand, 184% in Singapore, and 117% in Australia.
The rise in fraud highlights the growing vulnerability of traditional verification systems amid the proliferation of AI-driven attacks.
As healthtech and fintech continue expanding their digital footprints and relying on remote onboarding, they become more exposed to increasingly sophisticated threats that can compromise financial and personal data.
In response, Sumsub is urging businesses to adopt multi-layered, adaptive defense strategies and full-cycle verification tools to stay ahead of evolving fraud tactics.
Sumsub provides customizable KYC, KYB, transaction monitoring, and fraud prevention solutions and serves over 4,000 clients across fintech, crypto, gaming, education, e-commerce, and mobility sectors.