Identity Fraud Costs Organizations an Average of $7 Million Annually, Says New Research From Docusign and Entrust

Rhea-AI Summary

Entrust and DocuSign (NASDAQ: DOCU) have released a joint global study revealing alarming trends in identity fraud costs and prevention. The research shows that 69% of organizations report increased fraud attempts, with companies having over 5,000 employees facing average annual direct fraud costs of $13 million.

Key findings show that 20% of organizations with over 10,000 employees face annual costs exceeding $50 million. Traditional username/password authentication proves most vulnerable, with 51% reporting fraud incidents, while only 21% reported attempts against facial biometric systems.

Despite 58% expressing concerns about customer friction, 70% agree technology investment is important for fraud mitigation. Organizations investing in Identity Verification (IDV) solutions reported average savings of $8 million. High investors are 2.2x more likely to see savings and 1.7x more likely to reduce fraud significantly.

Positive

• Organizations using IDV solutions report average savings of $8 million
• 74% of organizations plan to increase IDV investments
• High investors in IDV are 2.2x more likely to see savings
• High investors are 1.7x more likely to reduce fraud significantly

Negative

• 69% of organizations report increased fraud attempts
• Organizations with 5,000+ employees face $13M average annual direct fraud costs
• 20% of large organizations (10,000+ employees) face over $50M annual fraud costs
• 51% report higher fraud rates with traditional username/password authentication

Insights

Financial Analyst

This research report highlights a significant market opportunity for Docusign's identity verification solutions. With organizations facing $7 million in average annual identity fraud costs—rising to $13 million for larger enterprises and exceeding $50 million for 20% of companies with 10,000+ employees—the economic case for Docusign's solutions is compelling.

The research strategically positions Docusign in the growing identity verification (IDV) market by demonstrating quantifiable ROI: organizations implementing IDV solutions reported average savings of $8 million. Most importantly, 74% of surveyed organizations plan to increase IDV investments, indicating strong demand growth potential for Docusign's Identify portfolio.

This report delivers three key investor insights: 1) It quantifies the addressable market problem Docusign solves; 2) It demonstrates measurable customer ROI that supports sales conversion; and 3) It positions Docusign as a thought leader in the identity security space beyond its core e-signature business.

The emphasis on AI-assisted fraud and advanced authentication methods aligns with market trends toward more sophisticated security solutions. With traditional username/password authentication shown to be vulnerable (51% reported fraud with this method versus just 21% for facial biometric verification), Docusign is well-positioned in the higher-value biometric authentication segment that offers both improved security and user experience.

Research reveals the rising costs of identity fraud and how enterprises are fighting back.

MINNEAPOLIS--(BUSINESS WIRE)-- Entrust, a global leader in providing identity-centric security solutions, and Docusign (Nasdaq: DOCU) released results of a joint global study examining the escalating costs of identity fraud and the trade-offs enterprises face between security and customer experience.

The Future of Global Identity Verification research report reveals that identity fraud is a growing threat globally and across industries, with over two-thirds (69%) of organizations reporting increased fraud attempts. Organizations with over 5,000 employees have an annual direct identity fraud cost of $13 million on average – and the costs grow by multiples as the size of organizations increases. Among organizations with over 10,000 employees, 20% have an annual direct and indirect identity fraud cost of over $50 million.

With the rise in AI-assisted fraud, attacks are becoming more sophisticated and frequent. In the report, 51% of respondents said fraud is more common when using username and password alone than any other user authentication method, highlighting the vulnerability of the most basic single-factor authentication. In contrast, 21% of organizations reported fraud attempts against facial biometric liveness detection, reinforcing the effectiveness of advanced authentication solutions.

The return on stronger identity protection

As fraud tactics evolve, organizations are doubling down on advanced security, despite concerns about adding friction to the customer experience. While 58% of respondents said that they are concerned that stricter fraud controls will frustrate consumers, the vast majority recognize the benefits of identity verification (IDV) investments:

• 70% agreed that investing in technology is the best way to mitigate the financial risk of identity fraud
• 74% plan on increasing their investments in IDV solutions in the future

Organizations that invested in IDV solutions reported savings averaging $8 million. Compared to those investing at an average level, high investors are:

• 2.2x more likely to see savings compared to companies investing the same or less
• 1.7x more likely to have significantly reduced identity fraud
• 2.7x more likely to believe they have a competitive advantage
• 1.6x more likely to report a positive impact on their brand

“A misconception about fraud prevention is that stronger security comes at the cost of user experience,” said Tony Ball, President of Payments & Identity at Entrust. “Modern IDV solutions and adaptive authentication enable them both. End-users can verify their identity with a quick biometric selfie, while fraud checks such as device recognition, AI-powered deepfake detection run in the background. Adaptive authentication completes the identity lifecycle security and further enhances security by adjusting requirements based on risk signals, ensuring protection without unnecessary friction.”

"As identity fraud escalates, enterprises are increasingly pressured to strike the right balance between security and seamless user experiences,” said Mangesh Bhandarkar, Group Vice President of Product at Docusign. “This global study reinforces a critical truth: Stronger security doesn’t have to come at the cost of customer experience – in fact, it enhances it. By implementing intelligent, low-friction security measures that are part of the Docusign Identify portfolio, businesses can create the right balance between building trust, protecting customers, and driving long-term engagement in an increasingly digital world."

With the digital landscape evolving rapidly, enterprises recognize the need for robust IDV solutions to stay ahead of fraudsters. As new technologies emerge, organizations are committed to increasing investments in security tools that enhance fraud prevention while maintaining a frictionless user experience.

Additional information

• Download the Future of Global Identity Verification report here
• Read the blog post Identity Fraud Is on the Rise, But What's to Blame? here
• Register for the upcoming webinar with Entrust and Docusign here

Methodology

The study was conducted November to December 2024 by market research firm TL;DR Insights, involving 1,413 business and IT decision makers for IDV solutions at organizations with 150+ employees that need to verify the identity of their users. Respondents are from the United States, the United Kingdom, Canada, Germany, France, Mexico, Brazil, Australia, and Japan.

About Docusign:

Docusign brings agreements to life. Over 1.6 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business-critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign's Intelligent Agreement Management platform, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and contract lifecycle management (CLM). For more information visit www.docusign.com.

About Entrust:

Entrust is an innovative leader in identity-centric security solutions, providing an integrated platform of scalable, AI-enabled security offerings. We enable organizations to safeguard their operations, evolve without compromise, and protect their interactions in an interconnected world – so they can transform their businesses with confidence. Entrust supports customers in 150+ countries and works with a global partner network. We are trusted by the world’s most trusted organizations. Learn more at www.entrust.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250403364876/en/

Media contact

Ken Kadet

Vice President, Public Relations & Communications

+1 952.988.1154

Ken.Kadet@entrust.com

Source: Entrust

FAQ

How much does identity fraud cost large organizations according to DocuSign's study?

Organizations with over 5,000 employees face average annual direct fraud costs of $13 million, while 20% of companies with over 10,000 employees experience costs exceeding $50 million annually.

What percentage of organizations reported increased fraud attempts in DocuSign's research?

69% of organizations reported an increase in fraud attempts according to the study.

How effective are biometric authentication methods compared to passwords for DOCU users?

Only 21% reported fraud attempts against facial biometric systems, while 51% reported fraud when using username and password authentication alone.

What ROI do companies see from investing in DocuSign's identity verification solutions?

Organizations investing in identity verification solutions reported average savings of $8 million, with high investors being 2.2x more likely to see savings.

What percentage of companies plan to increase their identity verification investments according to DOCU's study?

74% of organizations plan to increase their investments in identity verification solutions in the future.