Synthetic Identities And Malicious Bots Boost Fraud Attacks, LexisNexis Says

Why It Matters

The rapid expansion of synthetic identities and sophisticated bots threatens core online commerce channels, forcing firms to overhaul fraud‑detection architectures and invest in AI‑enabled verification to protect revenue and consumer trust.

Key Takeaways

• Synthetic identity fraud grew eightfold, now 11% of global fraud in 2025
• Latin America accounts for 48.3% of synthetic fraud, driven by e‑commerce and gaming
• Malicious bot usage rose 59% in 2025, mimicking human cursor movements
• E‑commerce login attacks doubled, with a 64% rise in overall fraud attacks
• AI‑driven agents surged 450%, creating new intent‑verification challenges for merchants

Pulse Analysis

The 2025 LexisNexis cybercrime report underscores a paradigm shift in fraud tactics, with synthetic identities eclipsing traditional scams. By stitching together fragments of real consumer data and leveraging generative AI, fraudsters can fabricate lifelike profiles that evade immediate detection. This long‑term approach yields higher returns and eliminates a direct victim who could raise an alarm, making synthetic fraud an attractive proposition for organized crime groups worldwide.

Latin America has emerged as a hotspot, contributing nearly half of global synthetic‑identity incidents. The region’s rapid digital adoption in e‑commerce, gaming, and mobile media provides fertile ground for these fabricated personas. Coupled with a 59% rise in malicious bots that replicate nuanced human behaviors—such as Bézier‑curve mouse movements—attackers are breaching login defenses at unprecedented rates. E‑commerce platforms saw a 64% year‑over‑year increase in fraud attacks, with gaming and gambling sites experiencing a 76% surge, highlighting the cross‑industry impact.

For businesses, the convergence of synthetic identities, advanced bots, and AI‑driven agents—up 450% in 2025—necessitates a rethinking of fraud‑prevention strategies. Traditional rule‑based systems struggle against adaptive, intent‑based threats, prompting a move toward behavioral analytics, real‑time identity verification, and collaborative data‑sharing frameworks. Companies that invest early in these technologies will better safeguard transaction integrity, preserve customer confidence, and stay ahead of an evolving fraud landscape.