Fake ID Statistics 2025: A Wake-Up Call for Age-Restricted Sellers

If you sell age-restricted products, you’re already a target.

Whether you’re managing a brick-and-mortar liquor store or running an ecommerce vape retail business, your bottom line is at risk. Fake IDs aren’t just a nuisance; they’re a gateway to huge financial losses, legal troubles, and reputational damage. And the issue isn’t getting better.

Digital identity manipulation has skyrocketed, with bad actors ranging from underage college students to organized fraud rings.

This blog post will analyze fake ID statistics to uncover what fake IDs look like in 2025, why they’re riskier than ever, and how advanced ID verification tools can help protect your business.

Defining Fake IDs in 2025: What Qualifies and Why They’re Dangerous

Not all fake IDs are created equal, but they all have one thing in common: they pose serious risks for businesses.

With counterfeiting technology advancing rapidly, fake IDs have gone far beyond crude attempts with mismatched fonts or low-quality materials. Today, they’re more sophisticated and harder to detect, making it critical to understand what constitutes a fake ID and why they’re so dangerous.

What Constitutes a Fake ID?

A fake ID isn’t just an outright forgery of information. It can take several forms, including these common types:

• Altered ID: This is when a legitimate ID is altered, such as changing a birthdate to reflect someone of legal age.
• Borrowed ID: Most often, these are IDs borrowed from a sibling, friend, or someone who looks similar. On the surface, it may appear authentic, but the person using it isn’t the rightful owner.
• Forged ID: These are counterfeit IDs made from scratch with fraudulent details, designed to resemble official identification.
• Digital Clones: An emerging threat where advanced technology recreates IDs that are nearly indistinguishable from originals. This includes digital licenses that some states now offer.

Types of Fake IDs: A Closer Look

Fake IDs can fall into distinct categories, and each has its own level of sophistication and origin.

• Novelty IDs: Often sold online, these are marketed as “just for fun.” But make no mistake, they’re frequently used to skirt age restrictions, especially for alcohol and vaping products.
• Black Market IDs: High-quality counterfeits are often made overseas and distributed through illicit networks. These fakes are designed to fool even trained professionals.
• AI-Generated IDs: Perhaps the most concerning, these are IDs that leverage artificial intelligence to create realistic holograms, watermarks, and even digital data that syncs with scanning systems. Their sophistication makes traditional detection methods less effective.

Why Fake IDs Are a Danger to Your Business

If someone uses a fake ID at your business, it’s more than just a minor annoyance. The repercussions can be both financial and legal, putting your entire operation at risk.

• Legal Risks: Selling age-restricted products to underage buyers can result in steep fines, lawsuits, and even the loss of your business license. State liquor boards and regulatory agencies don’t take these violations lightly.
• Operational Risks: Accepting fake IDs can open your business up to fraud, leading to revenue loss and other disruptions. For example, chargebacks from disputed transactions are a common outcome of fraudulent sales.
• Reputational Damage: Few things can tarnish a brand faster than being known as a business that doesn’t take compliance seriously. Once word gets out, customer trust can erode, making it hard to recover.

Global & U.S. Fake ID Statistics (2024–2025 Snapshot)

Fake IDs may not be a new issue, but the problem is evolving fast. Fraudsters are improving their techniques, and businesses in industries like nightlife, retail, and ecommerce are struggling to keep up.

Here’s a look at the key fake ID trends and statistics, broken down by where fake IDs are having the biggest impact:

College Students and Underage Alcohol/Tobacco Access

Fake IDs and college students often go hand in hand, and the data backs this up. The Gullah Society reports that most fake ID users fall within the 16–21 age range. For many in this group, the goal is simple – to gain entry to social spaces like bars and clubs or to purchase alcohol or tobacco products. These findings underscore how widespread this issue is, particularly in social environments where underage individuals frequently use counterfeit IDs to bypass age restrictions.

What’s even more alarming is that fake ID usage isn’t limited to this younger demographic. This fake ID report also points out a growing trend among adults who use fake IDs for fraud and financial crimes. This shift highlights how these counterfeit documents are no longer just tools for underage drinking but are now playing a role in more complex criminal activities.

Nightlife and Entertainment Venues

The nightlife industry, particularly bars and clubs, is heavily impacted by fake IDs. According to IDScan.net’s U.S. fake ID research, states like Texas, Arizona, and Louisiana are leading the pack in fake ID prevalence at nightlife venues. Customers using fake IDs make it harder for these businesses to stay compliant with regulations, resulting in potential fines or even loss of liquor licenses.

Tourist-heavy hubs like Las Vegas, Miami, and New York see the highest concentration of fake ID usage, nearly doubling the national average. For venue owners, investing in up-to-date identification scanners is critical. Without proper tools in place, these businesses often become targets for repeat offenders, especially during high-traffic seasons like the 4th of July or New Year’s Eve.

Ecommerce Fraud in Vape and Cannabis Sectors

Online shopping has opened up exciting opportunities for the vape and cannabis industries, but it’s also brought new challenges. Fraud is a growing concern, with fake IDs often used to bypass age restrictions.

Here’s the harsh reality – online payment fraud caused $44 billion in losses in 2024, a figure expected to hit $100 billion by 2029, according to Statista. Fraudsters are constantly finding ways to exploit vulnerabilities, leaving businesses struggling to keep up.

For cannabis dispensaries, 2-5% of scanned IDs are flagged as fake, according to IDScan.net. Even one missed fake ID could lead to license risks or hefty fines, making it essential for businesses to adopt stronger fraud prevention measures.

Use in Online-Only ID Verification Bypass Attempts

Fraudsters are taking advantage of generative AI, and the numbers are shocking. Deepfake-driven “face swap” attacks surged by 704% in 2023 and climbed another 300% by 2024, according to iProov. These AI-generated manipulations mimic real users to fool biometric systems, creating major vulnerabilities for businesses.

The risks aren’t just technical. A single successful attack can lead to fines, security breaches, and reputational harm.

The Economics of the Fake ID Industry

The fake ID market operates on a surprisingly organized system, built on supply, demand, and evolving technology.

Here’s a quick breakdown of the key dynamics shaping this underground economy:

Cost vs. Consequences

Fake IDs range from $100 to $300, with premium options mimicking real IDs through features like scannable barcodes and holograms, as noted by the Northwestern Business Review. While these prices may seem affordable to buyers, the risks to businesses are severe. One oversight can lead to fines, license suspensions, or even closures – not to mention lasting reputational damage.

Supply Chains

The fake ID market splits between local and international production. Domestic makers use high-tech printers for simpler, cheaper IDs, while overseas operations, like those in China, produce more sophisticated fakes with advanced security features. The use of dark web marketplaces and cryptocurrency further shields these supply chains, making them harder to disrupt.

Blockchain and Digital IDs

Blockchain and digital IDs could reshape verification by linking credentials directly to government systems, making them harder to fake. However, counterfeiters are quick to adapt, and experts warn that these advancements could also become new targets. To stay ahead, businesses must combine tech solutions with education and stricter penalties for offenders.

The Business Risk: What Fake ID Users Mean for Your Bottom Line

Fake ID users aren’t just a nuisance; they pose a serious threat to your business’s financial health and reputation. The risks go far beyond minor inconveniences, digging straight into your revenue, compliance responsibilities, and customer relationships.

Revenue Loss and Fraudulent Sales

Chargebacks are one of the most immediate consequences of fake ID use. When minors or fraudsters make purchases that later get disputed, businesses are stuck footing the bill. These chargebacks can pile up quickly, eating into profit margins. Add to this the lost inventory from fraudulent sales, and the financial damage becomes even harder to ignore.

Reputational Damage

Reputation is priceless, but it’s incredibly fragile. When an underage individual slips through the cracks and buys restricted products like alcohol, vape products, or cannabis, the fallout can be severe. The headlines practically write themselves, and public trust in your ability to enforce age restrictions could evaporate overnight. Once your name becomes associated with underage access, it takes a long time to rebuild credibility.

Compliance Risks

The stakes are high when it comes to compliance with regulatory bodies like the FDA or state liquor boards. A single oversight can lead to fines, temporary shutdowns, or even the loss of your license.

Regulatory scrutiny is only intensifying, with age verification standards and compliance checks becoming more rigid. Businesses that fail to stay ahead of the curve could find themselves targeted during inspections or audits.

Customer Trust and Operational Safety

ID fraud doesn’t just endanger compliance; it undermines the trust customers place in your operations. If your age verification process appears lax, loyal customers might rethink their relationship with your brand.

Beyond trust, fake IDs can also disrupt operational safety. For example, missteps with underage buyers or dishonest purchases can create hostile situations on-premises, putting employees and other customers at risk.

When fake ID users infiltrate your business, the ripples can become tsunamis. From financial losses to reputational damage and regulatory penalties, the risks are far-reaching. The solution lies in tightening up fraud detection measures and prioritizing robust age verification processes that protect not just your business but your brand’s future.

Fake ID Detection Methods: Outdated vs. Modern Methods

Detecting fake IDs has come a long way, but the methods used can make or break a business’s ability to prevent fraud. Traditional tactics, while once effective, are struggling to keep up with today’s more sophisticated forgeries.

Here’s a closer look at the old and the new, as well as the challenges posed by emerging threats:

Traditional Methods

Visual Checks and Blacklight Tests

For years, businesses relied on manual inspections or blacklight methods to verify IDs.

Employees were tasked with spotting watermark inconsistencies, holograms, or microtexts. Blacklights, meanwhile, helped reveal hidden security features. But with modern fake IDs replicating these details to perfection, these methods have lost much of their reliability.

Manual Entry of Date of Birth (DOB)

Manually entering DOB and cross-referencing against ID information introduces too much room for human error. Employees could misread numbers or overlook subtle but critical discrepancies. It’s not only inaccurate but also time-consuming during busy hours.

Modern Advances

Scanning Hardware

Advanced ID scanners with software capable of barcode and magnetic strip verification add an extra layer of security. These devices can quickly verify if an ID is consistent with its issuing guidelines.

That said, scanners are only as good as the software they use, and outdated databases can turn reliable hardware into a liability.

The Emerging Threat

What’s making the fight against ID fraud trickier is the rise of AI-generated IDs. These ultra-realistic fakes replicate every detail, down to wear-and-tear marks and scanned barcodes, making them indistinguishable to human employees and often fooling outdated scanners. Even trained teams equipped with state-of-the-art tools can find themselves outmatched.

The way forward? More businesses are pairing cutting-edge scanning devices with AI-driven detection systems. These tools can analyze data patterns, flag inconsistencies invisible to the human eye, and adapt as fraud techniques evolve.

While no method is perfect, modern approaches offer a more robust defense against the sophisticated threats of today.

Why FTx Identity Stands Out in ID Verification

In today’s fast-paced, compliance-driven environment, businesses need ID verification solutions that are not only secure but also efficient. FTx Identity rises to the challenge with a modern, intelligent platform designed to meet evolving regulatory and operational demands.

Real-Time Scanning with Advanced Tamper Detection

At the core of FTx Identity is its real-time ID scanning technology, which analyzes documents for signs of tampering or forgery. The system flags inconsistencies and suspicious alterations automatically – removing the guesswork from manual reviews and ensuring a higher standard of document authenticity across in-store and digital channels.

Built-In Age Verification and Digital KYC Compliance

FTx Identity simplifies regulatory compliance with built-in age verification tools that help businesses enforce age restrictions for regulated products such as alcohol, tobacco, and cannabis. It also supports digital Know Your Customer (KYC) processes and helps meet Anti-Money Laundering (AML) standards – automating identity checks while protecting your business from compliance risks.

Seamless API Integration for POS and Ecommerce

FTx Identity integrates easily with both point-of-sale systems and online checkouts via a flexible Application Programming Interface (API), ensuring fast deployment and minimal disruption.

Whether in-store or online, the platform delivers real-time ID verification that enhances customer trust without slowing down the transaction experience.

Industry-Specific Impact: Who’s Most at Risk?

Some industries face a higher risk than others when it comes to fake IDs and identity fraud. These vulnerabilities can lead to compliance failures, reputational damage, and financial loss.

Here’s how businesses in four key sectors are affected and how FTx Identity can help:

Liquor Stores & Bars – Fake IDs = Lost Licenses

• Fact: Nearly 7% of high school students reported using fake IDs to purchase alcohol, according to a National Institutes of Health study.
• Risk: For liquor stores and bars, this is a ticking time bomb. Selling alcohol to a minor can result in massive fines, license suspension, or even permanent revocation. Beyond legal consequences, these issues can gut a restaurant or bar’s reputation, costing loyal customers and future business opportunities.
• Solution: FTx Identity offers cutting-edge tools like real-time scanning and tamper detection to spot fake holograms and altered documents instantly. By automating ID checks, it reduces human oversight errors while seamlessly integrating into your point-of-sale system to keep your operations compliant and your customers happy.

Vape & Tobacco Retailers – High Underage Penetration

• Fact: The Centers for Disease Control and Prevention (CDC) reports that 7.8% of high school students are current e-cigarette users, highlighting the scale of the issue.
• Risk: Vape and tobacco retailers are in the crosshairs of stricter regulations and heightened scrutiny, and with good reason. Illegal sales to minors can tarnish a brand’s reputation and lead to legal challenges that burn right through profits.
• Solution: FTx Identity ensures age-restricted sales stay that way. Its robust digital KYC (Know Your Customer) compliance tools verify buyer ages against government-issued IDs with pinpoint accuracy. Whether it’s at the register or online, FTx Identity makes compliance smooth and stress-free, so you can focus on your business.

Cannabis Dispensaries – Complex, State-by-State Compliance

• Fact: Cannabis regulations differ drastically between states, and compliance audits are an ongoing challenge for dispensaries.
• Risk: This industry already operates in a tightly regulated space. Even minor slip-ups with ID verification can lead to hefty penalties, legal battles, or operational shutdowns. With laws often changing, businesses need a reliable solution to stay one step ahead of auditors.
• Solution: FTx Identity combines real-time ID scanning and digital KYC features to ensure your dispensary remains compliant with state-specific laws. Its automation capabilities simplify the verification process, allowing you to build trust with regulators and customers alike, even as regulations evolve.

Ecommerce Sites – No Face-to-Face Interaction = High Vulnerability

• Fact: E-cigarette sales surged by 46% between 2020 and 2022, according to Truth Initiative, underscoring the growing challenges of online age verification.
• Risk: Ecommerce platforms that sell age-restricted goods face a unique challenge. Without in-person buyer interaction, fraudulent purchases can slip through more easily. The outcome? Disputes, chargebacks, and an unwelcome spotlight on your compliance processes.
• Solution: FTx Identity’s API integrates seamlessly into ecommerce checkouts, verifying customer IDs during transactions with expert precision. Features like tamper detection ensure you’re authorizing only legitimate sales, protecting your business from fraud while delivering a smooth shopping experience.

Looking Ahead: The Future of Identity Verification

The landscape of identity verification is rapidly evolving, with new technologies and regulations reshaping how businesses and consumers interact. From innovative biometrics to legislative changes and the ongoing battle between fraud AI and its defenses, the future promises both challenges and opportunities.

Here’s a glimpse of what lies ahead:

Biometric Trends to Watch

Biometric technology is leading the charge in next-generation verification. Tools like face match and liveness detection are no longer futuristic concepts; they’re becoming the gold standard for security.

• Face Match: By comparing a user’s selfie to their ID photo in real-time, face match technology enhances accuracy while reducing manual intervention. This streamlines the verification process, whether for banking, travel, or age-restricted purchases.
• Liveness Detection: With fraudsters growing more advanced, the need to counteract spoofing attacks has never been greater. Liveness detection ensures the person presenting the ID is physically present, not using an image, video, or deepfake to trick the system.

These advances make identity verification faster and more foolproof, but they also require significant investment. Businesses ready to adopt these technologies will be better positioned to gain customer trust in an era of increasing data breaches.

Legislative Momentum

Governments globally are stepping up their regulation of identity verification processes. Two key developments are poised to make an impact:

• The Real ID Act: This U.S. legislation sets higher security standards for state-issued IDs, enforcing stricter protocols for acceptance. For businesses, this means the bar for verifying IDs will rise, pushing the adoption of more robust technologies like digital verification.
• Digital ID Mandates: More countries are introducing digital ID systems to streamline public and private services. While these systems promise efficiency, they also raise questions about privacy and data security. Businesses must prepare for how these mandates will influence their verification methods and compliance requirements.

Fraud AI vs. Fraud AI Defense

The ongoing battle between cybercriminals and cybersecurity is entering a new phase. On one side, fraudsters are leveraging AI to create hyper-realistic fake IDs and deepfakes. On the other hand, defense technologies are advancing to counter these very threats.

• Fraud AI: Tools to replicate IDs, mimic holographic features, or even generate realistic-sounding credentials are becoming more accessible. This makes traditional verification methods increasingly obsolete.
• Fraud AI Defense: Meanwhile, systems like FTx Identity are deploying AI to fight fire with fire. These platforms analyze patterns, detect anomalies, and evolve alongside emerging threats, making them indispensable allies for businesses.

Looking to 2026, we can expect fraud AI to grow more sophisticated, but innovations in defense will keep pace, driven by machine learning and predictive analytics.

Preparing for a Secure Tomorrow

The future of identity verification isn’t just about adopting the latest tech; it’s about creating trust in a digital-first world. With biometrics, tighter regulation, and AI arms races on the horizon, businesses must act now to strengthen their defenses and adapt to change. By doing so, they’ll not only protect their operations but also win the confidence of their customers.