New data released by global verification provider Sumsub, revealed that healthtech and fintech sectors are the most exposed to the new wave of artificial intelligence (AI)- powered fraud in Asia Pacific (APAC).

The firm said in a statement on Thursday that APAC digital ecosystems continue to undergo explosive growth, some of the fastest-growing sectors are becoming prime targets for increasingly sophisticated fraud.

According to the statement, healthtech recorded the sharpest year-on-year spike across industries in the region—an alarming 723 percent compared to the first quarter of 2024.

In fintech, fraud remains persistent with the second highest year-on-year rise in fraud in APAC, with 116 percent increase over the same period.

This surge in fraud comes as both sectors experience rapid growth.

Fintech in APAC is set to grow from $450 billion in 2024, to $1150 billion by 2032, while digital health is expected to expand eightfold by 2033, reaching nearly $488.50 billion.

But as these industries scale, so does the sophistication of the fraud they face.

Fueled by generative artificial intelligence (AI), synthetic identity documents, deepfakes, and AI-driven tactics are evolving rapidly—exploiting gaps in security and compliance to trick systems and commit fraud.

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 percent surge in deepfake fraud cases from 2024 while Hong Kong saw an even more dramatic 1,900 percent 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.

Globally, synthetic identity document fraud cases have surged by 195 percent, with APAC seeing an even sharper rise of 233 percent, 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).

There are particularly steep increases in the Philippines (291 percent); Hong Kong (209 percent); Thailand (188 percent); Singapore (184 percent); Australia (117 percent).

“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,” said Penny Chai, Vice President, APAC, Sumsub.

According to her, the surges in AI-powered fraud, including deepfakes and synthetic identity documents, is exposing critical flaws in traditional verification systems.

“To protect themselves, businesses must move beyond outdated approaches and adopt multi-layered, adaptive defenses,

“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 solution,” she added.

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