Sumsub Q1 Data Reveals Synthetic Identity Document Fraud Surges Nearly Threefold Since Last Year In The Philippines

New internal data from Sumsub, a global verification provider, reveals that the Philippines is facing a significant shift in fraud tactics as AI-powered synthetic identity document fraud overtakes traditional methods such as document forgery and biometric spoofing. The country saw a 291% year-on-year increase in synthetic identity document fraud, well above the APAC average of 233%, with the fourth highest fraud rate globally for such attacks. Fraud overall saw a sharp rise, with a 69% increase in fraud rates compared to Q1 2024, making Philippines the second most targeted market in APAC, trailing only after China’s 107% surge.

Unlike traditional fraud methods that steal or forge existing documents, Synthetic identity document fraud involves criminals using AI and machine learning to create convincing fake identity documents that can bypass traditional verification methods. These fake personas combine real and fabricated information to appear legitimate to standard verification checks and are fundamentally changing the fraud landscape across all digital industries.

This shift in fraud methods coincides with a decline in traditional fraud methods. Biometric spoofing dropped by 68%, indicating improved detection capabilities for fake biometric traits. Document forgery also decreased by 7%. The decline in both document forgery and biometric spoofing demonstrates that traditional fraud prevention methods are proving effective, but criminals are pivoting to more sophisticated synthetic identity document creation that requires advanced AI-powered detection systems.

Amid these challenges, industry leaders see opportunity alongside risk. “The Philippines represents one of Southeast Asia’s most dynamic economies with immense potential for growth,” said Penny Chai, Vice President, APAC at Sumsub. “The surge in synthetic identity document fraud reflects how fraud tactics are continuously evolving with – AI-generated documents becoming increasingly sophisticated and harder to detect through traditional verification systems. Given the rapid acceleration in both the scale and complexity of such fraud, businesses that invest in multi-layered and adaptive defenses today will be better placed to protect their users and thrive in the country’s fast growing economy. Sumsub is committed to supporting this journey by helping companies build the trust and verification systems needed to unlock their full potential in the digital economy.”

While fraud in the fintech sector remains persistent, traditional finance across the region has experienced a 78% year-on-year increase in fraud rates. This rising fraud risk poses a critical challenge for the Philippine banking industry, which, according to a recent survey by the Bangko Sentral ng Pilipinas (BSP), anticipates double-digit growth in assets, loans, deposits, and net income over the next two years.

As the Philippine banking sector expands within this increasingly complex fraud environment, strengthening verification and fraud prevention measures is essential to safeguarding growth and maintaining trust. Sumsub’s ongoing partnership with Nexus Technologies, enables local businesses to access Sumsub’s global expertise in identity verification technology while ensuring compliance with evolving Philippine regulations.

To expand their presence in the Philippines, Sumsub will be having its APAC Roadshow “Comply to Fortify 2025” on June 18, 2025 together with their partner, Nexus Technologies to demonstrate how businesses can learn and practice the implementation of innovative fraud prevention tools.

Methodology Note: Unless otherwise specified, all figures referenced are based on Sumsub’s internal statistics, drawn from millions of identity verification checks conducted globally between Q1 2024 and Q1 2025. These insights reflect real-world patterns across multiple industries and geographies, offering a representative snapshot of digital verification trends during this period.