Identity fraud hit 55% of New Zealand firms: Lumin

Lumin has released research showing identity fraud affected 55% of New Zealand organisations in the past year, with affected businesses reporting an average annual cost of NZD $2.2 million.

The Christchurch-based document workflow company surveyed 1,000 business decision-makers across New Zealand, Australia and the US for its Digital Identity in Business report, which examined the effect of fraud on business trust, document signing and identity verification practices.

The findings point to broad concern among New Zealand businesses over how agreements are signed and verified. The research found 90% of organisations believe their current processes for signing and verifying documents are vulnerable to AI-linked fraud.

That concern appears to be influencing commercial relationships. Nearly 70% of New Zealand businesses said they would be less willing to work with a partner that had recently experienced an identity fraud incident, suggesting breaches can affect supplier relationships as well as internal risk management.

Growing losses

The figures add to evidence that identity fraud is moving beyond a compliance issue into a broader business problem for finance, legal and operations teams. Weaknesses in agreement workflows can expose financial, corporate and personal data, with losses extending beyond the direct cost of a fraudulent event.

New Zealand businesses are responding, but more slowly than peers in other markets. Some 67% of organisations said they planned to increase investment in identity verification technology and processes over the next two years, compared with 82% in Australia and 78% in the US.

The research also found support for a broader identity framework. In New Zealand, 85% of firms backed the introduction of government-issued digital IDs, with easier identity verification cited as the main reason.

Lumin said the issue has been intensified by more convincing impersonation attempts and fake communications. Businesses increasingly need to verify not only the presence of a signature, but also the identity of the person signing a contract or approving a document.

The findings are based on a quantitative online survey conducted in December 2025. Sapio Research carried out the study on Lumin's behalf using email invitations and an online questionnaire.

Boardroom issue

Max Ferguson, chief executive officer and founder of Lumin, said the risks now extend well beyond IT departments.

"Our goal is to ensure Kiwi organisations have the tools to act decisively, ensuring NZ remains a trusted place to do business globally. I see the reality of this threat every day, with scammers impersonating me to my staff and targeting our accounts team with fake invoices. AI has sharpened these fraud tactics to the point where they directly threaten the trust that keeps our business ecosystem interconnected and operating smoothly.

"Preventing identity fraud is no longer just an IT responsibility. Businesses need to acknowledge that it can strike any department and must be addressed at the boardroom level. Industries have to move beyond simply capturing a signature and shift toward verifying the person signing. By evolving how we secure identities now, we can protect our reputation and our future," Ferguson said.

The results suggest many New Zealand companies already see the issue as a business continuity concern. If firms become more cautious about dealing with partners that have suffered fraud, the effects could spread through supply chains and make it harder for affected companies to win new work or retain commercial relationships.

For Lumin, which says it serves more than 120 million professionals worldwide, the report places identity checks and document verification at the centre of corporate risk management. The survey's focus on business leaders suggests decisions about fraud prevention are increasingly being weighed alongside spending on operational resilience and trust.

The study found concern about fraud is widespread, investment is rising, and many businesses believe current document processes remain exposed.