Intellicheck Inaugural Identity Fraud Threat Report Exposes Widespread Fraud Risks Threatening Massive Losses Across Industries

Key Terms

identity verification technical

Identity verification is the process companies use to confirm that a person is who they claim to be, typically by checking IDs, biometric data, or trusted databases. For investors, it matters because effective verification reduces fraud and legal risk, speeds customer onboarding, and protects a firm's reputation—much like a bouncer checking IDs at a club to keep the place safe and compliant with rules.

SaaS-based financial

Software-as-a-service (SaaS)-based describes products delivered over the internet where the provider hosts and maintains the software and customers pay ongoing subscription fees instead of buying a one-time license. For investors this matters because the business model tends to produce predictable, recurring revenue and growth that depends on keeping customers over time, much like renting a furnished apartment provides steady income for a landlord rather than a single large sale.

DMV-issued IDs technical

DMV-issued IDs are government photo identification cards or driver’s licenses provided by a state motor vehicle agency; they serve as official proof of who someone is and where they live. For investors, these IDs matter because companies and financial platforms use them to verify customers, prevent fraud, and meet legal rules (like anti-money-laundering and know-your-customer checks), much like a key that helps open and secure an account.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Analysis of nearly 100 million identity verifications provide new insight into evolving fraud trends

MELVILLE, N.Y.--(BUSINESS WIRE)-- Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering proprietary on-demand digital and physical identity validation solutions, today announced the release of its inaugural 2026 Intellicheck North America Identity Verification Threat Report. The report provides a comprehensive, data-driven analysis of how the identity fraud landscape is evolving across financial services, retail, and other major industries. It draws on proprietary, anonymized data from some 100 million North American identity verification transactions conducted in 2025 covering around half the U.S. and Canadian adult population.

Identity fraud is escalating at an unprecedented pace. In 2025 alone, Intellicheck detected more than 200 invalid IDs every hour. Each failed verification represented a potential fraud attempt. The financial impact is staggering. According to the Federal Trade Commission, consumers reported $12.5 billion in fraud losses in 2024. Identity fraud was a gateway for many of those attacks.

Intellicheck’s anonymized 2025 data underscores the scale of the threat.
• 97.85% of IDs passed verification.
• 2.15% failed.

That 2.15% equates to millions of potential fraud attempts annually that would have resulted in substantial financial losses.

In banking, the failure rate was 1.9% across tens of millions of verifications. Left undetected, those failed IDs would have resulted in significant losses and broken consumer trust.

Key Findings from the 2026 Intellicheck North American Identity Verification Threat Report

Sector volatility is real.
Failure rates vary dramatically by industry. Alcohol retail recorded a 15.1% failure rate. Auto sales recorded 1.6%.

Financial institutions remain prime targets.
Retail online-only banks had the highest failure rate at 5.5%. Traditional retail banks (in-person and online) recorded 1.7%. Payday lenders showed 2.8%. Subprime lenders reached 2.6%.

Retail credit card fraud differs by category.
Fraudsters continue targeting store-branded credit programs. Among the top 10 retail categories, Arts and Crafts stores had the highest failure rate at 5.0%. Outdoor and Recreation was lowest at 1.6%.

Password reset verification is surging.
Identity verification for password resets increased 158% year-over-year. Organizations are increasingly requiring government-issued ID checks to prevent account takeovers. Even so, 2% of identities failed verification in 2025.

AI is accelerating the threat.
AI-enabled tools are making counterfeit IDs nearly indistinguishable to the human eye. The result: more sophisticated fraud attempts and higher potential losses. Organizations must deploy advanced, differentiated, and proven verification technologies to keep pace.

The full report is available for download on the Intellicheck website. Use this link: 2026 Intellicheck North America Identity Verification Threat Report.

“For organizations, identity fraud is no longer theoretical, it’s an operational reality,” said Intellicheck CEO Bryan Lewis. “This report delivers meaningful, cross-industry data that shows where fraud is emerging and how organizations can strengthen trust. As bad actors evolve their tactics, companies need proactive, state-of-the-art solutions tailored to their industries and customers. Protecting trust requires proven expertise and technology that stops fraud without slowing legitimate users.”

For more than 25 years, Intellicheck has focused on identifying and combating evolving identity-based threats. The 2026 Threat Report reflects that commitment. It is designed to help organizations benchmark performance, understand risk exposure, and make informed decisions in a complex fraud environment.

Intellicheck’s SaaS-based identity validation service delivers 99.975% decisioning accuracy in under a second through proprietary analysis of DMV-issued IDs — stopping fraud before it starts. Intellicheck is the only SaaS-based validation and proofing service that uses a unique and proprietary analysis of DMV-issued IDs to create trusted, real-time customer identity verification experiences across a wide variety of sectors, both in-person and digitally.

About Intellicheck
Intellicheck, the industry leader in identity verification management, prevents the unauthorized use of IDs to stop identity-based fraud. Intellicheck is the only SaaS-based validation and proofing service that uses a unique and proprietary analysis of DMV-issued IDs to create trusted, real-time customer identity verification experiences across a wide variety of sectors, both in-person and digitally. Each year, we validate around 100 million identities across North America, providing a seamless, invisible ID verification with delivering 99.975% decisioning in under a second to stop fraud before it starts. For more information on Intellicheck, visit us on the web and follow us on LinkedIn, X, Facebook, and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260218597360/en/

Intellicheck Media and Public Relations: Sharon Schultz (302) 539-3747/ sschultz@intellicheck.com
Intellicheck Investor Relations: Gar Jackson (949) 873-2789/ gjackson@intellicheck.com

Source: Intellicheck, Inc.