SINGAPORE, June 14, 2025 — As Asia-Pacific’s digital economy accelerates, so too does the sophistication and scale of fraud targeting its fastest-growing industries. According to new data released by global verification provider Sumsub, AI-powered fraud tactics such as deepfakes and synthetic identity documents are fuelling a sharp rise in financial crime across healthtech and fintech sectors in the region.
Healthtech, in particular, has emerged as the most vulnerable sector, recording a staggering 723% year-on-year surge in fraud incidents in the first quarter of 2025 compared to the same period last year. Fintech followed closely, with a 116% increase in fraud cases, underlining the growing exposure of Asia-Pacific’s digital financial services to increasingly complex attacks.
The spike in fraud coincides with the rapid expansion of these sectors. APAC’s fintech industry is projected to more than double in size, growing from USD 450 billion in 2024 to USD 1.15 trillion by 2032. Meanwhile, digital health is forecast to expand eightfold, reaching nearly USD 488.5 billion by 2033.
Yet, as these sectors scale, cybercriminals are deploying advanced technologies, notably generative AI, to exploit system vulnerabilities. “While fintech fraud is a familiar battleground, given the sector’s longstanding exposure to financial crime, the scale of fraud in healthtech signals a worrying new frontier,” said Penny Chai, Vice President, APAC, at Sumsub. “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.”
One of the most alarming trends identified in the report is the dramatic rise in deepfake-enabled scams. Singapore recorded a 1,500% increase in deepfake fraud cases over the past year, while Hong Kong saw an even more dramatic jump of 1,900%. These AI-generated videos and images are no longer limited to election interference or business impersonation but are increasingly being deployed in job scams and sophisticated digital identity fraud.
In parallel, the use of synthetic identity documents—AI-constructed IDs that combine real data such as national identity numbers with fabricated details—has also spiked significantly. Across APAC, synthetic identity document fraud grew by 233%, outpacing the global increase of 195%. Fraudsters use these fabricated identities to bypass Know Your Customer (KYC) processes, gaining unauthorised access to financial services and sensitive health records.
Country-level data shows particularly sharp year-on-year increases in synthetic identity document fraud between Q1 2024 and Q1 2025:
- Philippines: 291%
- Hong Kong: 209%
- Thailand: 188%
- Singapore: 184%
- Australia: 117%
The growing accessibility of AI-powered tools is enabling bad actors to craft increasingly convincing fraudulent identities, presenting mounting challenges for both regulators and businesses. Traditional verification systems, often designed for simpler fraud scenarios, are now struggling to keep pace with the speed and complexity of AI-driven deception.
“To protect themselves, businesses must move beyond outdated approaches and adopt multi-layered, adaptive defences,” Chai added. “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.”
The findings serve as a stark warning to industries across Asia-Pacific, highlighting the urgent need to invest in more advanced fraud detection technologies, regulatory frameworks, and cross-sector collaboration to safeguard the integrity of the region’s rapidly expanding digital economy.