A new global study by Docusign, in partnership with identity security provider Entrust, has revealed a growing financial and reputational toll from identity fraud, with organisations losing an average of US$7 million annually. The research, titled The Future of Global Identity Verification, highlights increasing pressure on businesses to secure digital experiences without disrupting user convenience, particularly in the Asia Pacific (APAC) region.
Globally, 69% of organisations reported a rise in identity fraud attempts over the past two years. In APAC, the most common threats include identity theft, account creation fraud, and digital document forgeries. These attacks typically occur during critical customer journey stages such as onboarding and document verification. Businesses often find themselves struggling to strike the right balance between robust security and seamless user experience—80% of APAC companies admitted these goals were often at odds, the highest proportion across all regions surveyed.
Kartik Krishnamurthy, Vice-President for Asia at Docusign, commented on the findings, saying, “As identity fraud escalates, enterprises are increasingly pressured to strike the right balance between security and seamless user experiences. 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.”
He added that intelligent, low-friction measures in Docusign’s ID Verification portfolio help companies build trust and long-term engagement, without compromising user satisfaction.
Financial services and retail sectors report significant losses
The study found that identity fraud poses a particularly serious threat to the banking and retail sectors. In financial services, more than half of global respondents (51%) reported annual fraud losses exceeding US$1 million. These incidents typically arise during account creation or payment approvals, when fraudsters take advantage of weak identity verification systems.
Retail and e-commerce platforms, on the other hand, face the challenge of balancing speed and security in high-volume transactions. Fraud in this space is often detected too late—at checkout or during chargebacks—making prevention efforts less effective. As customer trust becomes a competitive differentiator, early detection tools like modern identity verification (IDV) solutions are seen as critical for protecting brand reputation and improving conversion rates.
With fraud tactics becoming more advanced, especially through AI-generated content and spoofing, basic defences such as usernames and passwords are proving insufficient. The report found that 51% of fraud attempts exploited traditional credentials, compared to only 21% targeting facial biometric liveness detection, highlighting the need for more advanced technologies.
Investments in ID verification show strong returns
Organisations are increasingly turning to intelligent verification tools not only to reduce fraud but also to enhance customer experience and brand trust. While 58% feared that stricter security could impact user experience, 70% of respondents identified technology as the most effective tool for mitigating fraud. Additionally, 74% said they plan to increase spending on identity verification solutions in the near future.
Tony Ball, President of Payments & Identity at Entrust, addressed this misconception: “A misconception about fraud prevention is that stronger security comes at the cost of user experience. 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.”
The report also showed that companies investing heavily in modern IDV tools reported average annual savings of US$8 million. These organisations were 2.2 times more likely to achieve cost reductions, 1.7 times more likely to lower fraud significantly, and 1.6 times more likely to see an improvement in brand trust.
As threats become more sophisticated, organisations are beginning to embed IDV tools into wider fraud prevention strategies. These solutions not only address immediate risks but also support long-term goals like customer trust, secure digital engagement, and competitive differentiation.
