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Sift, an AI-powered fraud prevention platform, has released its Q2 2025 Digital Trust Index, highlighting a sharp rise in AI-generated scams. Despite declining consumer concern, the report uncovers a dangerous gap between confidence and vulnerability, posing significant risks for both individuals and businesses.
AI-generated scams increased victims by 62% year-over-year in 2025.
70% of consumers find scams harder to detect, per Sift’s survey.
Consumer concern about AI fraud dropped from 79% to 61% since 2024.
Gen Z and Millennials face higher scam rates despite confidence.
31% of consumers share sensitive data with GenAI tools, risking exposure.
Fraudsters use 36% more payment methods than legitimate users.
The Sift Q2 2025 Digital Trust Index reports a 62% increase in successful AI-generated scams compared to 2024, with 27% of targeted consumers falling victim. Despite growing familiarity with generative AI (GenAI), 70% of consumers note that scams are increasingly difficult to detect. “AI-generated scams and deepfakes are proliferating with speed and concerning sophistication, leaving even the most informed consumers at risk,” said Kevin Lee, SVP of Customer Experience, Trust & Safety at Sift. This surge occurs as consumer concern about AI fraud dropped from 79% to 61%, creating a dangerous confidence paradox.
The report highlights a generational divide in scam susceptibility. Gen Z and Millennials, despite high confidence in identifying scams (52% and 44%), are victimized at rates of 30% and 23%, respectively. In contrast, Gen X and Baby Boomers, with lower confidence (30% and 13%), exhibit more cautious online behavior, resulting in lower victimization rates (19% and 12%). This suggests that digital natives’ familiarity with AI may breed overconfidence, increasing their exposure to sophisticated scams.
Consumer behavior amplifies enterprise security risks. Despite privacy concerns, 31% of consumers admit to sharing sensitive information with GenAI tools, including email addresses (55%), phone numbers (49%), home addresses (44%), and financial data (33%). Alarmingly, 14% have shared company trade secrets, exposing both individuals and businesses to significant risks. These practices highlight the need for robust data protection measures to safeguard enterprises from fraud-related liabilities.
Sift’s Global Data Network, processing over 1 trillion events annually, reveals distinct fraudster behaviors. Criminals use 36% more payment methods than legitimate users, employ 20% fewer IP addresses, and operate primarily during late-night hours (10 p.m. to 5 a.m.). These patterns indicate coordinated, sophisticated operations that businesses must counter with advanced AI-driven fraud detection tools to protect customers and maintain trust.
Sift’s findings underscore the urgent need for businesses to adopt AI-powered fraud prevention to combat increasingly sophisticated scams. By leveraging real-time analytics and behavioral insights, companies can close the confidence gap, protect consumers, and foster secure digital experiences that drive growth and loyalty.
Sift is the AI-powered fraud platform delivering identity trust for leading global businesses. Our deep investments in machine learning and user identity, a data network scoring 1 trillion events per year, and a commitment to long-term customer success empower more than 700 customers to grow fearlessly. Brands including DoorDash, Yelp, and Poshmark rely on Sift to unlock growth and deliver seamless consumer experiences.
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