Research reveals the rising costs of identity fraud and how enterprises are fighting back.

Entrust, a global leader in providing identity-centric security solutions, and Docusign (Nasdaq: DOCU) released results of a joint global study examining the escalating costs of identity fraud and the trade-offs enterprises face between security and customer experience.

The Future of Global Identity Verification research report reveals that identity fraud is a growing threat globally and across industries, with over two-thirds (69%) of organizations reporting increased fraud attempts. Organizations with over 5,000 employees have an annual direct identity fraud cost of $13 million on average – and the costs grow by multiples as the size of organizations increases. Among organizations with over 10,000 employees, 20% have an annual direct and indirect identity fraud cost of over $50 million.

With the rise in AI-assisted fraud, attacks are becoming more sophisticated and frequent. In the report, 51% of respondents said fraud is more common when using username and password alone than any other user authentication method, highlighting the vulnerability of the most basic single-factor authentication. In contrast, 21% of organizations reported fraud attempts against facial biometric liveness detection, reinforcing the effectiveness of advanced authentication solutions.

The return on stronger identity protection

As fraud tactics evolve, organizations are doubling down on advanced security, despite concerns about adding friction to the customer experience. While 58% of respondents said that they are concerned that stricter fraud controls will frustrate consumers, the vast majority recognize the benefits of identity verification (IDV) investments:

• 70% agreed that investing in technology is the best way to mitigate the financial risk of identity fraud
• 74% plan on increasing their investments in IDV solutions in the future

Organizations that invested in IDV solutions reported savings averaging $8 million. Compared to those investing at an average level, high investors are:

• 2.2x more likely to see savings compared to companies investing the same or less
• 1.7x more likely to have significantly reduced identity fraud
• 2.7x more likely to believe they have a competitive advantage
• 1.6x more likely to report a positive impact on their brand

“A misconception about fraud prevention is that stronger security comes at the cost of user experience,” said Tony Ball, President of Payments & Identity at Entrust. “Modern IDV solutions and adaptive authentication enable them both. End-users can verify their identity with a quick biometric selfie, while fraud checks such as device recognition, AI-powered deepfake detection run in the background. Adaptive authentication completes the identity lifecycle security and further enhances security by adjusting requirements based on risk signals, ensuring protection without unnecessary friction.”

"As identity fraud escalates, enterprises are increasingly pressured to strike the right balance between security and seamless user experiences,” said Mangesh Bhandarkar, Group Vice President of Product at Docusign. “This global study reinforces a critical truth: Stronger security doesn’t have to come at the cost of customer experience – in fact, it enhances it. By implementing intelligent, low-friction security measures that are part of the Docusign Identify portfolio, businesses can create the right balance between building trust, protecting customers, and driving long-term engagement in an increasingly digital world."

With the digital landscape evolving rapidly, enterprises recognize the need for robust IDV solutions to stay ahead of fraudsters. As new technologies emerge, organizations are committed to increasing investments in security tools that enhance fraud prevention while maintaining a frictionless user experience.

Additional information

• Download the Future of Global Identity Verification report here
• Read the blog post Identity Fraud Is on the Rise, But What's to Blame? here
• Register for the upcoming webinar with Entrust and Docusign here

Methodology

The study was conducted November to December 2024 by market research firm TL;DR Insights, involving 1,413 business and IT decision makers for IDV solutions at organizations with 150+ employees that need to verify the identity of their users. Respondents are from the United States, the United Kingdom, Canada, Germany, France, Mexico, Brazil, Australia, and Japan.

About Docusign:

Docusign brings agreements to life. Over 1.6 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business-critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign's Intelligent Agreement Management platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and contract lifecycle management (CLM). For more information visit www.docusign.com.

About Entrust:

Entrust is an innovative leader in identity-centric security solutions, providing an integrated platform of scalable, AI-enabled security offerings. We enable organizations to safeguard their operations, evolve without compromise, and protect their interactions in an interconnected world – so they can transform their businesses with confidence. Entrust supports customers in 150+ countries and works with a global partner network. We are trusted by the world’s most trusted organizations. Learn more at www.entrust.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250403364876/en/

As fraud tactics evolve, organizations are doubling down on advanced security.