A new global study by Entrust, a leader in identity-centric security solutions, and Docusign (Nasdaq: DOCU) highlights the rising financial impact of identity fraud. According to the report, organizations lose an average of $7 million annually due to fraud, with large enterprises facing even steeper losses. Businesses with over 5,000 employees report an average annual fraud cost of $13 million, while 20% of companies with over 10,000 employees face direct and indirect fraud costs exceeding $50 million.
With the rise of AI-driven fraud, attacks are becoming more sophisticated. The study found that 69% of organizations have seen an increase in fraud attempts. Notably, businesses relying solely on username and password authentication are most vulnerable—51% of respondents reported higher fraud rates with this method. In contrast, facial biometric authentication had significantly lower fraud attempts, with only 21% of organizations experiencing breaches in systems using liveness detection.
Why Investing in Identity Verification Pays Off
As fraud threats evolve, businesses are prioritizing advanced identity verification (IDV) solutions to mitigate risks. Although 58% of organizations worry that stricter security measures may inconvenience customers, most acknowledge the benefits of strong fraud prevention strategies.
Key Findings:
- 70% of businesses believe investing in technology is the best way to reduce financial losses from fraud.
- 74% plan to increase their spending on IDV solutions to enhance security.
- Companies that invest heavily in IDV report an average saving of $8 million annually.
The Business Impact of IDV Investments:
Organizations that invest significantly in identity verification experience:
✅ 2.2x higher savings compared to companies with lower investments.
✅ 1.7x greater fraud reduction rates.
✅ 2.7x stronger competitive advantage.
✅ 1.6x higher brand trust and customer confidence.
Stronger Security Without Sacrificing User Experience
Many businesses believe that increasing security measures might negatively impact customer experience, but experts suggest otherwise.
“A common misconception is that better security leads to a worse user experience,” said Tony Ball, President of Payments & Identity at Entrust. “Modern identity verification and adaptive authentication allow businesses to enhance security without adding friction. Features like biometric verification, device recognition, and AI-powered deepfake detection run in the background, keeping users safe while ensuring a seamless experience.”
“Enterprises must find the right balance between security and convenience,” added Mangesh Bhandarkar, Group Vice President of Product at Docusign. “Our study confirms that stronger security actually improves customer experience, rather than compromising it. Solutions like those in the Docusign Identify portfolio help businesses build trust, protect users, and drive long-term engagement.”
The Future of Identity Security
As digital fraud tactics evolve, enterprises must stay ahead by investing in AI-driven IDV solutions. The study underscores the urgency for organizations to adopt cutting-edge fraud prevention tools that provide robust protection without disrupting user experience.
By implementing adaptive authentication and biometric verification, businesses can reduce fraud, enhance brand trust, and gain a competitive edge in today’s digital-first world.
—————————————————————————————————
About Innovation Streets:
Welcome to InnovationStreets.com! Get the latest insights from the finance and technology industries. Discover industry updates on fintech innovations, regulatory developments, industry insights, events, and collaborations between banks, insurers, and fintechs. A platform for C-level executives to submit thought leadership content for their peers. Subscribe for updates!
