Seminal research report

The Convergence of Authentication and Fraud Prevention

A deep dive into why buyers demand unified identity platforms and how probabilistic signals are reshaping defenses.

09/10/25

Report Overview

Fraud losses are accelerating, projected to reach nearly $64B by 2028. Generative AI is fueling scalable scams, deepfakes, and voice clones that slip past traditional defenses. At the same time, static authentication methods like passwords and OTPs are proving insufficient, with 72% of buyers saying single-signal authentication cannot stop fraud.

The old divide between authentication and fraud prevention is collapsing. Organizations are facing repeat account takeovers, mounting customer trust erosion, and rising compliance pressure. Yet, most are still juggling multiple vendors per use case, leaving gaps that fraudsters exploit.

This seminal report is a deep dive into how authentication and fraud are converging. It reveals why 79% of organizations now prefer unified platforms that merge authentication with fraud prevention, and how probabilistic signals like behavioral analytics, device intelligence, and continuous monitoring are becoming the standard for resilient defenses.

The Convergence of Authentication and Fraud Prevention equips CISOs, IT, fraud, and compliance leaders with the evidence and direction needed to unify defenses, strengthen ROI, and protect the full customer lifecycle against GenAI-driven threats.

Key Takeways:

Fraud outpacing defenses: 71% of buyers are concerned current tools cannot stop GenAI-driven scams.
Authentication alone isn’t enough: 72% of organizations say single-signal methods like passwords fail against modern fraud.
Repeat ATO attacks are rising: 78% of buyers report recurring account takeover incidents that erode trust and increase losses.
Probabilistic signals are becoming the standard: 83% already use behavioral, device, or location signals, and nearly all others plan adoption within a year.
Platforms are winning: 79% of buyers now prefer identity-focused platforms that unify authentication and fraud prevention.

Methodology
The Link Index offers a detailed analysis and ranking of leading vendors for specific use cases, leveraging robust data and insights from Liminal’s market and competitive intelligence platform, Link. Liminal’s research team invites solution providers to participate in a company survey and analyst briefing. It uses a proprietary framework to assess and rank product capabilities based on their relevance to market needs. Liminal’s Digital Identity Landscape taxonomy and ontology are central to the Link Index, which precisely evaluates vendor solutions by buyer demand, product capability, and market presence. Liminal conducts a rigorous survey among buyers in the vendor selection process to identify the most in-demand product capabilities and the most valued product components. Market presence criteria included buyer satisfaction, market penetration, and brand recognition. The Link Index was designed to be used to inform go-to-market strategy and execution and provide guidance for solution buyers, specifically:
- Executives in corporate strategy
- Leaders of go-to-market execution
- Practitioners of solution implementation