While digital ecosystems across Asia Pacific (APAC) continue to enjoy rapid growth, some of the fastest-growing sectors are becoming prime targets for increasingly sophisticated fraud, according to new findings from global verification provider Sumsub.
Healthtech and fintech appear to be the sectors in APAC most exposed to a new wave of AI-powered fraud, Sumsub has revealed. In fact, healthtech recorded the sharpest year-on-year spike across industries in the region – an alarming 723 per cent compared to Q1 2024.
In fintech, fraud remains persistent with the second-highest year-on-year rise in fraud in APAC, with a 116 per cent increase over the same period. This surge in fraud comes as both sectors experience rapid growth. Fintech in APAC is predicted to more than double from $450 billion in 2024, to $1.15trillion by 2032, while digital health is expected to expand eightfold by 2033, reaching nearly $488.5billion.
But as these industries scale, so too is the sophistication of the fraud they face, says Sumsub. Fuelled by generative AI, synthetic identity documents, and deepfakes, AI-driven tactics are quickly becoming the biggest challenge facing these sectors.
The use of deepfakes is particularly concerning, extending beyond election interference and business impersonation to AI-generated job scams. Singapore recorded a staggering 1,500 per cent surge in deepfake fraud cases from 2024, while Hong Kong saw an even more dramatic 1,900 per cent jump.
As AI becomes more accessible, fraudsters are using AI-powered tools to construct synthetic identity documents, combining real data like a valid ID number with fictitious details to create a completely new, non-existent persona. In sectors like fintech and healthtech, where digital onboarding and remote verification are common, these AI-generated documents are often used to impersonate legitimate users during Know Your Customer (KYC) checks. This allows bad actors to fraudulently access financial services or sensitive health records, posing serious risks to both service providers and end users.
Time for businesses to adapt
Globally, synthetic identity document fraud cases have surged by 195 per cent, with APAC seeing an even sharper rise of 233 per cent, underscoring the scale and sophistication of the threat. Several APAC markets have recorded a sharp year-on-year rise in synthetic identity document fraud (Q1 2024 to Q1 2025), with particularly steep increases in:
- The Philippines (291 per cent increase)
- Hong Kong (209 per cent)
- Thailand (188 per cent)
- Singapore (184 per cent)
- Australia (117 per cent)
Sumsub’s APAC vice president, Penny Chai, discussed the findings: “While fintech fraud is a familiar battleground, given the sector’s long-standing exposure to financial crime and its evolution alongside crypto, the scale of fraud in healthtech signals a worrying new frontier.
“As more healthcare services go digital, the sector’s vulnerabilities are being exploited at pace, putting trust in the digital health system at serious risk. The surges in AI-powered fraud, including deepfakes and synthetic identity documents, are exposing critical flaws in traditional verification systems.
“To protect themselves, businesses must move beyond outdated approaches and adopt multi-layered, adaptive defences. At Sumsub, our focus is on helping businesses stay one step ahead of fraudsters by anticipating new attack vectors and delivering smarter, more resilient full-cycle verification solutions.”
