As AI-driven fraud explodes, platforms like Sumsub are redefining online trust

Core Insights - The rise of artificial intelligence has transformed fraud into a systemic issue for the crypto industry, with significant increases in deepfake and synthetic identity fraud [1][3] - Companies must adapt their trust verification processes to counteract sophisticated fraud techniques enabled by AI [3][4] Fraud Statistics - In Q1 2025, U.S. deepfake fraud attempts surged by 1,100%, while synthetic identity fraud increased by nearly 300% [1][2] Industry Vulnerability - Traditional assumptions about fraud management in crypto are no longer valid due to the capabilities of AI-generated deepfakes and synthetic IDs, leaving various sectors vulnerable [3] Trust Design - Companies should prioritize designing trust mechanisms from the outset, ensuring they are robust and adaptable [4] Compliance and Growth - Compliance is often viewed as a burden, but new verification infrastructures can transform it into a growth engine, allowing for a focus on development in Web3 without the threat of fraud [5] Anti-Fraud Strategies - A three-step playbook against deepfake scams includes pausing to verify identities, checking for signs of fakes, and implementing security measures like multi-factor authentication [6][7] Verification Infrastructure - Effective verification infrastructure includes full-cycle identity checks, device intelligence, reusable digital IDs, and compliance tools that facilitate onboarding without hindering user experience [8]