In 2024, identity theft in digital financial institutions reached alarming levels, with an annual growth of 84% in fraud rates per 1,000 applicants, according to Unico México’s ‘A Year in Fraud 2024’ study. This surge was driven by tools like deepfakes, enabling facial falsification through artificial intelligence.
Sophisticated Tactics and Rising False Identities
This increase has been accompanied by increasingly sophisticated tactics from fraudsters, reflected in a 49% rise in circulation of false identities and a 63.26% boost in average attempts per fraudster to apply for products under someone else’s name.
Underestimation and Lack of Prevention Measures
“Newer digital financial institutions often fail to grasp the extent of identity theft fraud in Mexico, not setting up adequate barriers. Others simply overlook it as this type of fraud usually operates under the radar,” said Fernando González Paulin, Unico’s global infrastructure identity firm executive director.
Serial Offenders and Systemic Patterns
The study revealed that 78% of fraudsters are serial offenders, operating in multiple institutions. A detailed case showed one fraudster using 151 false identities within a single institution, detected across seven different financial entities.
Growing Resilience Among Fraudsters
González noted that fraudsters have increased their resilience, persisting in attempts until achieving their goals. The study highlighted a 60% rise in fraudster adaptability between 2023 and 2024.
Financial Impact for Creditors
For credit issuers, this phenomenon translates into losses due to the bad debt generated by fraudulent activities affecting their financial stability and limiting new loan disbursements. Undetected fraud can slip through financial institutions’ radar and become part of vencida (bad debt) portfolios.
Fraud Detection Imperative
González emphasized that undetected fraud during credit issuance or account opening remains unnoticed by financial entities, often constituting 35% of vencida portfolios.
