6 types of identity fraud your platform may face

Identity fraud is one of the most pressing threats facing online platforms today. Whether you run a marketplace, a hiring platform, a financial app, or a community site, chances are fraudsters will attempt to exploit weaknesses in how you verify and trust users. The consequences can be devastating: fake accounts erode trust, fraudulent transactions drain resources, and regulatory penalties follow when platforms fail to protect personal data. Understanding the different forms of identity fraud is the first step towards building defences strong enough to stop them.

In this article, we’ll explore six major types of identity fraud your platform may face. From synthetic identities to deepfakes, we’ll cover how each works, why it matters, and what practical steps you can take to prevent it.

1. Account takeover (ATO)

Account takeover occurs when a fraudster gains unauthorised access to a legitimate user’s account. Instead of creating a fake identity, they hijack an existing one—exploiting saved payment details, personal information, or access rights.

ATO is often achieved through phishing emails, credential stuffing (using leaked usernames and passwords from other sites), or brute force attacks on weak login systems. Once inside, fraudsters can make fraudulent purchases, transfer funds, or impersonate the victim for scams.

Why it matters: ATO damages user trust more than almost any other fraud type. Victims blame the platform for failing to protect their accounts, and regulatory bodies may impose fines if poor security controls are identified.

How to prevent it:

• Enforce strong password policies and encourage password managers.
• Require two-factor authentication (2FA) or multi-factor authentication (MFA) for logins.
• Use anomaly detection to flag unusual login behaviour (e.g. impossible travel, IP mismatches).
• Deploy risk-based authentication, tightening checks for high-risk actions such as withdrawals or account changes.

2. Synthetic identity fraud

Synthetic identity fraud combines real and fake information to create a new, “synthetic” identity. For example, fraudsters may use a genuine national insurance number or credit file combined with a fake name, address, and email. These fabricated personas are then used to open accounts, apply for loans, or conduct fraudulent transactions.

Unlike simple stolen identities, synthetics are harder to detect because no single victim immediately reports the fraud. Instead, platforms may only notice months later when unpaid debts accumulate.

Why it matters: Synthetic identity fraud is one of the fastest-growing fraud types globally, costing billions annually. For platforms, it introduces long-term liabilities and can contaminate datasets used for trust scoring or risk modelling.

How to prevent it:

• Verify user-provided details against multiple trusted sources, not just one.
• Look for inconsistencies across data points (e.g. date of birth not matching credit history).
• Use proof-of-personhood tools that require real-time biometric verification.
• Flag users with limited digital footprints combined with high-risk activity.

3. Document forgery and manipulation

Fraudsters often submit falsified documents—passports, driving licences, utility bills—to pass verification checks. With modern editing software, fake documents can be produced convincingly enough to fool human reviewers.

Platforms in industries like hiring, fintech, and gig work are particularly at risk, as they often rely on digital identity verification at scale. A single fake document slipping through can enable larger fraud schemes, from money laundering to fake job placements.

Why it matters: Relying on weak document checks exposes platforms to regulatory scrutiny, especially under anti-money laundering (AML) and know-your-customer (KYC) rules. Fraudulent workers or customers can also exploit trust to cause downstream harm.

How to prevent it:

• Use automated document verification tools that check holograms, fonts, and security features.
• Cross-reference document details with issuing authorities where possible.
• Require liveness checks (e.g. selfie video comparisons) alongside document uploads.
• Regularly update detection models to counter new forgery techniques.

4. Impersonation and social engineering

Not all identity fraud relies on stolen data or fake documents. Sometimes fraudsters succeed simply by pretending to be someone else and manipulating others into giving up access. This could include pretending to be a platform administrator (“Your account is at risk, click this link”), or impersonating a legitimate employee during onboarding.

These attacks often combine psychological manipulation with technical tricks, making them difficult for users to spot.

Why it matters: Impersonation undermines the credibility of your brand. Even a single incident where fraudsters convincingly mimic your platform’s staff can create a wave of distrust among users.

How to prevent it:

• Educate users about common scams and how your platform will (and won’t) contact them.
• Authenticate communications with SPF, DKIM, and DMARC to prevent email spoofing.
• Offer users simple ways to verify official communications (e.g. in-app alerts).
• Maintain strict internal access controls to prevent insider impersonation risks.

5. Biometric spoofing

As platforms adopt facial recognition, fingerprint scanning, and voice authentication, fraudsters have responded with biometric spoofing. This involves tricking systems with photos, recordings, or masks designed to mimic legitimate users.

For example, criminals might hold up a printed photo during a liveness check, or use AI to synthesise a voice. Without advanced countermeasures, even sophisticated platforms can be fooled.

Why it matters: Biometric spoofing undermines trust in the very technologies designed to protect against fraud. Once breached, it is far harder to recover from than a simple password reset, since biometric traits cannot be “changed.”

How to prevent it:

• Implement liveness detection that requires natural movements, not static images.
• Use multi-modal biometrics (e.g. combining facial and voice verification).
• Continuously update spoofing detection algorithms as threats evolve.
• Maintain fallback authentication methods to handle suspicious cases safely.

6. Deepfake-enabled fraud

Deepfakes take impersonation and spoofing to the next level. By using AI-generated audio or video, fraudsters can convincingly mimic real individuals during video calls or onboarding processes. A recruiter might think they’re interviewing a real candidate, only to discover later that the person never existed.

Deepfake fraud is particularly dangerous for high-trust scenarios, such as remote hiring, KYC checks, or high-value financial transactions.

Why it matters: Deepfakes threaten the foundation of digital trust. If users cannot believe what they see or hear, platforms risk becoming unusable. Regulators are also beginning to impose penalties for platforms that fail to detect manipulated media.

How to prevent it:

• Adopt deepfake detection tools that analyse facial micro-expressions and audio anomalies.
• Require multi-step verification in high-risk cases (e.g. follow-up live video checks).
• Educate users on deepfake risks and provide ways to report suspicious interactions.
• Invest in trust infrastructure, such as Ruvia’s APIs, to verify users at scale.

Final thoughts

Identity fraud is evolving fast. Fraudsters no longer rely solely on stolen credit card numbers or weak passwords—they now deploy AI, deepfakes, and synthetic identities to bypass defences. Platforms that fail to adapt will face reputational damage, financial loss, and potential regulatory penalties.

The solution lies in building trust infrastructure into your platform: layered verification, behavioural monitoring, fraud detection APIs, and ongoing education for both staff and users. By understanding the six main types of identity fraud—account takeover, synthetic identities, document forgery, impersonation, biometric spoofing, and deepfakes—you can design stronger safeguards and stay one step ahead.

Fraudsters innovate quickly, but so can you. With the right approach, your platform can remain secure, compliant, and trusted by users worldwide.