“There are fraud rings and nation-state actors in all countries, and they’re finding ways to intercept and disrupt government benefit programs,” says Jordan Burris, public-sector vice president with Socure. These attackers constantly change tactics to avoid detection and exploit new vulnerabilities. “You have to stay dynamic to curb this existential threat,” Burris says1.
Next-generation AI capabilities and holistic collaboration strategies address these threats, enabling agencies to strengthen protection of constituent data and taxpayer dollars.
EMERGING RISKS AND CHALLENGES
Organized global fraudsters accounted for 12 percent of incoming applications for government services and loans, according to a 2025 Socure report2. A quarter of these attempts targeted multiple agencies.
“Attackers operate 24/7 at machine speed, and that’s likely to overwhelm traditional detection systems,” says Deborah Snyder, senior fellow with the Center for Digital Government* and longtime cybersecurity leader in state government.
The most pressing identity-based risks and challenges include:
Rogue AI agents: Adversaries are creating bots that operate at scale without human oversight. These autonomous agents can create deepfakes, establish phony credentials and dupe benefits programs. “They’re used deliberately to perform more malicious activities to augment what a criminal would take on,” Burris says. “You’re looking at hundreds of thousands of attempts across the country.”
Remote-hiring exploits: Digital hiring of workers from around the world has become an attractive attack vector. Rogue AI agents help fraudsters impersonate legitimate job candidates to gain insider access and steal sensitive data or disrupt operations. Recruiters face major challenges as applicant volume surges.
Pervasive compromised identity data: Personally identifiable information (PII) like Social Security numbers, birth dates and home addresses is no longer reliable for identity confirmation. “We should assume that just about everyone has already had their information stolen,” Burris cautions. This diminishes the effectiveness of knowledge-based authentication.
Outdated government systems: Legacy technologies often have weak identity-proofing mechanisms. Limited data sharing also hampers the ability to establish a strong, unified digital identity defense.
Unfair barriers for underserved populations: Recent immigrants and young people entering the workforce may have thin credit histories. Overreliance on narrow data sources can unintentionally restrict access to digital services and benefits.
This is really an arms race.
— Jordan Burris, Public Sector Vice President, Socure
A modern, strategic approach to identity verification helps agencies support fairness while deterring AI-enhanced fraud. Key practices include:
Deploy AI-driven identity intelligence: Modern AI-enabled identity verification systems use fraud risk scoring and behavioral analytics to flag suspicious activity. These systems gather device intelligence, evaluate IP geolocation and monitor application velocity in real time. AI-enabled verification forms a crucial layer in a multilayered identity defense stack.
Balance security and access: Fraud prevention strategies must not create undue friction for legitimate users. Agencies should continuously assess the impact of identity verification systems to ensure they promote equitable access while preventing fraud.
Modernize credentials: Secure digital credentials — such as mobile driver’s licenses or verified digital wallets — improve identity proofing and can be revoked instantly if compromised. Physical credentials are easier to forge and remain viable longer after loss or theft.
Secure remote-hiring pipelines: Risk-based identity scoring supports continuous verification from application through onboarding. This creates safeguards for full-time employees, contractors and third-party hires.
Foster interagency and interstate collaboration: Fraud task forces and cross-agency intelligence sharing help organizations stay ahead of adversaries. Sharing updates on new tactics and coordinating efforts strengthens defenses across jurisdictions.
Prepare for what’s coming: Agencies must regularly update fraud detection tools to stay ahead of evolving threats. As Burris notes, “This is really an arms race.” Early detection and rapid mitigation are essential to limiting harm.
THE IDENTITY IMPERATIVE
Today’s AI-driven fraud landscape underscores the need for reliable and accurate digital identities. Effective identity strategies and modern tools position agencies to mitigate fraud risk while ensuring fair access to public resources.
“Adaptive identity verification and fraud analytics are foundational infrastructure,” Snyder says. Agencies that modernize identity systems, build layered defenses and prioritize intelligence sharing will be best positioned to counter sophisticated threats and build public trust.
- https://webinars.govtech.com/Fighting-Next-Generation-Fraud%3A-Rogue-AI%2C-Deep-Identity-Threats-and-Remote-Work-Exploits-143571
- https://www.socure.com/news-and-press/socure-unveils-digital-identity-report-on-fraud-rings
*The Center for Digital Government is part of e.Republic, Government Technology’s parent company.
Sponsored by Socure
Socure provides digital identity verification and fraud solutions powered by predictive analytics, AI and machine learning. Learn more at www.socure.com.
