As generative AI advances, so does the threat landscape facing identity verification (IDV) systems. In the U.S. alone, fraud losses have surged from $3.5 billion in 2020 to over $10 billion in 2023, growing at a staggering 41.9% compound annual growth rate (CAGR). Projections indicate that losses could exceed $12 billion in 2024.
But the bigger storm is brewing in banking fraud, where AI-driven techniques are expected to push global losses to $40 billion by 2027, up from $12.3 billion in 2023. This isn't just about stolen credit cards anymore—we're facing sophisticated deepfakes, AI-generated synthetic identities, and automated attack frameworks that can bypass traditional security measures at scale.
Despite these escalating threats, many IDV vendors continue to rely on internal test environments or marketing claims, often underestimating how vulnerable their systems are to today's real-world fraud tactics. Traditional vendor evaluations focus on controlled demo environments that don't reflect the chaos of actual fraud attacks.
Reality Check: A vendor's internal testing might show 99.5% accuracy against known attack vectors, but how do they perform against novel deepfakes, synthetic document generation, or coordinated multi-vector attacks that criminals are using today?
That's where Arbitra comes in. We deliver independent benchmarking and penetration testing services that simulate sophisticated fraud attacks—including deepfakes, AI-generated identities, workflow manipulation, and SDK injection attacks. Using a combination of real and synthetic identities, our tests evaluate a vendor's actual ability to detect fraud under pressure, not just ideal conditions.
Average performance across major IDV vendors tested by Arbitra (2024)
No vendor relationships or bias—just pure, data-driven security assessment
Testing against actual fraud techniques used by criminals today
Multi-vector testing across all major fraud categories and attack types
Detailed reports with specific recommendations for security improvements
This kind of benchmarking isn't just helpful—it's essential. As AI-driven fraud evolves, security teams and compliance leaders can no longer rely on outdated RFPs or glossy demo videos. They need objective, transparent, and data-rich insights that show how vendors perform in the wild.
The financial services industry is particularly vulnerable. Banks and fintech companies processing millions of identity verifications daily need solutions that can withstand the most sophisticated attacks. A single breach or successful fraud campaign can result in millions in losses and irreparable reputation damage.
Don't wait for fraudsters to find your vulnerabilities. Get independent, comprehensive testing that shows how your IDV solution performs against real-world AI-powered attacks.
Arbitra exists to close the gap between vendor claims and reality—so you can deploy IDV solutions you can trust before the fraud gets smarter. In a world where AI-powered attacks are growing exponentially, independent benchmarking isn't just a nice-to-have—it's your first line of defense.
The question isn't whether AI-powered fraud will target your business.
The question is: Will your IDV solution be ready?
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