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The rise of AI-driven test fraud – and why we need new defenses
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The rise of AI-driven test fraud – and why we need new defenses

Wally Dalrymple, Chief Security Officer

April 8, 2025
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Online proctoring security: why we need new defenses

Test security has always been a high-stakes challenge, but now AI is changing the rules. While technology opens exciting new opportunities, it also fuels increasingly sophisticated methods of cheating, identity fraud, and test content theft. This blog explores some of the most prominent threats in an evolving online proctoring security landscape.

Growing test security threats

In 2024, deepfake-enabled fraud occurred at a rate of one every five minutes, accounting for 40% of all video biometric fraud attempts. AI-generated forged documents have surged, with digital forgeries overtaking physical counterfeits for the first time. At the same time, coordinated cheating rings are scaling their operations globally, using encrypted communication and advanced tech to support large-scale fraud.

These threats are no longer confined to small-scale operations. Professional cheating rings, armed with AI technology, are now capable of orchestrating complex operations across regions and industries. They offer services that include proxy testing, live remote assistance, and even test content theft – all supported by sophisticated tools that make detection incredibly challenging.

What’s behind this surge?

AI has made fraud more accessible and harder to detect. Proxy testers can create convincing fake identities with forged documents and deepfake videos. Cheating rings use AI to steal, share, and monetize test content on a global scale.

The anonymity of encrypted messaging apps and dark web marketplaces allows these groups to operate without fear of detection. As AI tools become cheaper and more powerful, bad actors are using them to bypass traditional security measures at speed and scale.

It’s not just organized fraud rings contributing to this surge. Individual test takers are increasingly using AI tools to gain an unfair advantage. From AI-generated answers and plagiarism to hidden devices during remote online proctoring, the range of tactics is expanding. The barriers to entry are lower than ever, meaning even casual cheaters can access sophisticated fraud tools.

Why traditional measures are no longer enough

Proven test security methods like a lockdown browser, ID checks, online proctoring, and content security remain essential – but they can’t combat AI-assisted fraud on their own. Human observation alone can’t always detect micro-anomalies in facial movements, speech patterns, or test-taking behaviors that AI-generated deepfakes can now mimic – particularly as the technology advances. Relying solely on legacy defenses leaves testing programs exposed.

Additionally, traditional online proctoring security measures are often reactive rather than proactive. They detect incidents after they occur or rely heavily on manual monitoring, which cannot scale to meet the volume and complexity of AI-driven attacks. As fraud attempts increase, human-only monitoring systems can struggle to keep up, leading to delayed responses and potentially compromised outcomes.

The cost of inaction

For testing organizations, the stakes are high. Test fraud not only undermines test taker trust and devalues credentials but also exposes organizations to reputational and financial risk. The scale and sophistication of AI-driven fraud demands an equally intelligent response.

Consider the broader implications: compromised test security can lead to invalid credentials, legal challenges, and public scrutiny. In sectors where assessments influence critical professional qualifications – such as healthcare, education, and finance – the impact can extend beyond individual careers to public safety and trust.

Read about how to close the AI trust gap in testing.

A reason to feel optimistic

Before the test, online proctoring security uses AI to strengthen identity verification with multi-layer biometric checks and deepfake detection. These advanced systems can spot inconsistencies in facial movements, voice patterns, and typing behaviors that would escape the human eye.

The good news? The same AI technologies used by bad actors are now being harnessed to protect tests at every stage – before, during, and after test delivery.

During the test, online proctoring security leverages AI to support proctors by detecting suspicious behaviors, unusual eye movements, and environmental anomalies. It can flag background noises, multiple faces on screen, or sudden behavioral changes for human review.

After the test, online proctoring security can apply AI to data forensics and pattern analysis, helping to detect cheating rings, stolen content, and unusual scoring clusters. This allows organizations to identify trends and take corrective actions faster than ever before.

Read how identity-centric test security is combating evolving threats.

But technology alone is not enough. Human expertise remains critical in designing, training, and overseeing these systems to ensure fairness, accuracy, and adaptability. AI models need continuous refinement, guided by the judgment of experienced test security professionals who understand the nuances of test taker behavior and evolving fraud tactics.

A multi-layered approach: AI and human expertise combined

PSI’s approach combines innovative AI tools with human oversight to deliver a comprehensive test security strategy. Our team of psychometricians, data forensics experts, test security experts, and online proctors work alongside AI systems to ensure flagged incidents are reviewed with context and fairness.

This human-in-the-loop model also allows for continuous learning. Insights from human reviews feed back into the AI systems, making them smarter and more effective over time. The result is a dynamic, adaptive security framework capable of staying ahead of increasingly sophisticated threats.

What’s next

Look out for our next blog on AI and test security, where we’ll take a closer look at the AI-powered solutions already making a difference – and how testing organizations can integrate them into their strategies to protect test integrity in an evolving landscape.

To find out more about emerging threats and the defenses available, download our guide to AI and test security. 

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