The latest report from Sumsub highlights a significant 65% increase in fraud across the Asia-Pacific (APAC) region, as AI-driven fraud becomes more common. Released on 11 March 2026, the report indicates that 74% of crypto providers are now prioritising verification accuracy over onboarding speed, marking a shift in industry focus amidst regulatory pressures and sophisticated fraud tactics.
Sumsub’s fourth annual State of the Crypto Industry report reveals that whilst global fraud rates remained stable at 2.2%, APAC experienced a surge to 3.3%. This increase is attributed to fraudsters exploiting gaps in fast-growing markets. In Singapore, however, platforms maintained a high compliance rate with a 94% pass rate, demonstrating that stringent regulations do not necessarily hinder user experience.
The report also notes that 63% of APAC platforms encountered fraud at least once in 2025, with attackers using deepfakes and synthetic identities to bypass traditional checks. Andrew Sever, Sumsub’s Co-Founder and CEO, stated, “Crypto has entered a phase where operational discipline matters more than momentum.”
As the industry evolves, the focus is on balancing user experience with compliance. Verification times have improved, with APAC maintaining an average of 19 seconds. The report suggests that future growth will depend on integrating reliability into product design from the outset.
Globally, the period from 2025 to 2026 marks a regulatory turning point, with increased enforcement of compliance measures. As the crypto industry adapts to these changes, the emphasis on robust verification processes and fraud detection is expected to continue.
