Banks, fintechs, and crypto platforms are ramping up investment in fraud prevention and identity verification (IDV), positioning it as the next layer of cyber defense, according to a new survey.
The study from Regula shows banks are leading this trend: the share of institutions intending to increase IDV budgets by more than 50 percent is nearly tripling — from 4.4 percent to 15 percent in just two years.
Roughly a third of banks and crypto firms and a fifth of fintechs expect 10-20 percent increases. Meanwhile, at least every third organization in the wider financial services ecosystem is considering more substantial growth of 20-50 percent. The share of companies aiming at major budget hikes — over 50 percent — has nearly doubled in both crypto and fintech, reaching about 17 percent of organizations in each sector today.
The need to invest in identity tech is not just confined to the financial sector, aviation companies are close behind, with 17 percent now considering 50 percent+ budget hikes, while healthcare organizations are beginning to follow suit, though at a more moderate pace, with around 10 percent expecting such major increases. Across all industries, two-thirds of businesses have already increased IDV spending, and nearly half are preparing for further double-digit growth.
“Executives have finally woken up to the deepfake economy,” says Henry Patishman, executive vice president of identity verification solutions at Regula. “They’re realizing that identity verification isn’t a cost of doing business anymore, but a growth engine. Just as cybersecurity became non-negotiable a decade ago, identity verification is now core infrastructure for trust in the AI era.”
The US is leading the surge, with 22 percent of American companies aspiring to 50 percent+ budget increases — the highest share worldwide. The UAE, Singapore, and Germany are also showing strong mid-range growth, with about a third of organizations aiming to raise spending by 21–50 percent.
The full report is available from the Regula site.
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