Digital identity in business:
The threats, impact,
and opportunities
How 1,000 business leaders across the US, Australia, and New Zealand are confronting AI-powered identity fraud, and what it means for the future of business.
Experienced identity fraud in the last 12 months
Average annual loss to identity fraud
Planning to increase investment in identity verification in the next two years
The growing threat
Identity fraud is no longer an edge case. More than half of organizations surveyed have experienced identity fraud in the past year, with many experiencing it multiple times.
Fraud prevalence
Q. In the past 12 months, has your organization experienced any form of identity fraud? n = 1,000
Industry breakdown
% of organizations experiencing fraud by industry
The confidence gap
Despite rising threats, many organizations lack confidence in their ability to detect and prevent specific fraud types, especially AI-generated deepfakes.
Confidence in preventing fraud types
Q. How confident are you in your organization's ability to prevent identity fraud attempted using each of the following tools or methods? n = 1,000
Only half of organizations are confident they can protect against deepfake video and audio fraud.
As AI tools lower the barrier to creating convincing deepfakes, the gap between threat sophistication and business defenses is widening.
Agreement threat landscape
Business agreements are prime targets. Identity fraud and cyberattacks are seen as the most critical threats to agreement integrity across all industries.
Threat ratings to business agreements
Q. How would you rate the risk of each of the following threats to business agreements? n = 1,000
AI-powered fraud vulnerability
Q. How vulnerable do you believe agreement workflows are to AI-powered fraud (e.g., deepfake video/images, AI-generated signatures, document manipulation)? n = 1,000
94% say they are at least somewhat vulnerable to AI-powered fraud
Only 5% feel fully secure
Industry vulnerability to AI fraud
The financial impact
The cost of identity fraud extends far beyond immediate losses, affecting operations, insurance, legal standing, and client relationships.
Cost distribution
Total annual cost of identity fraud incidents
Average cost by industry
Millions USD
Operational impact
Effects experienced following identity fraud
Partnership & trust impact
A fraud incident doesn't just cost money. It erodes the trust that business relationships are built on.
Would be less willing to partner with
a fraud-affected organization
The current state of verification
Many organizations rely on eSignature platforms, but most say current solutions could be improved, particularly in high-stakes industries.
Primary signature methods
How organizations currently handle document signing
Identity verification time
Time spent verifying identity per agreement
Trust in eSignature solutions
Overall confidence in current eSignature security
eSignature trust by industry
Stacked view of trust levels across industries
Looking ahead:
investment & innovation
Business leaders are responding with investment. The majority plan to increase identity verification spend, and support for digital ID schemes is near-universal.
Investment intent
Planned changes to identity verification investment over the next two years
Plan to increase investment in identity verification
Including 29% who plan to invest significantly more
Of enterprise organizations intend to invest more
32% plan to invest significantly more
Support for government digital IDs
Business leaders' stance on government-issued digital identity schemes
Support government digital ID schemes
with 93% of enterprises supporting them
Three imperatives for business leaders
The data points to three clear actions that organizations must take to protect themselves from identity fraud in business agreements.
Critically evaluate vulnerabilities
Assess your current identity verification processes to identify gaps. Understanding where you are exposed is the foundation of any effective response.
Reinforce agreement workflows without adding friction
Prioritise verification methods that provide strong identity assurance at signing without burdening signers. Security and convenience are not mutually exclusive.
Elevate identity fraud to a strategic priority
Cross-functional ownership is essential, spanning IT, legal, operations, and executive leadership. This is a board-level risk.
Discuss what this means for your organisation
Every organisation's exposure is different. Our team can help you think through what the research means for your specific context and workflows.