ID doc, selfie biometric checks implemented from banking to exams to combat rampant fraud
As businesses continue to adjust to the spike in online fraud, Blinking, Trust Swiftly, Regula and Smart Engines have each unveiled customers in different verticals they are providing biometrics, ID document checks or both for. Shufti Pro and one of its onboarding customers, meanwhile, have shown the concept works, with statistics illustrating a successful two-year partnership.
Fraud is expected to cause $206 billion in losses in the online payments industry over the next five years, according to Juniper Research, driven by identity fraud.
Spending on fraud detection and prevention platform services is expected to rise from $9.3 billion in 2021 to $11.8 billion in 2025.
‘Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2021-2025’ found that 47 percent of fraud losses in 2021 have come from remote purchases of physical goods. Those have increased dramatically during the pandemic, but so have synthetic identities and account takeover attacks.
Fraud costs are particularly high in markets in the Asia-Pacific region, according to research from LexisNexis.
The ‘2021 True Cost of Fraud APAC Study’ shows costs per transaction ranging from $3.51 in Australia to $3.87 in Japan. Identity verification and determining transaction origination are among the common challenges across different country markets, with synthetic identities posing a particular challenge.
Despite these challenges, the use of best practices, including passive digital identity authentication and transaction risk assessment, is limited, LexisNexis found.
Bybit introduces KYC
Regulators and companies are still catching up to each other as well, with Bybit, the fifth-largest cryptocurrency derivatives exchange by trade volume, according to Cointelegraph.com, moving to introduce know your customer (KYC) checks this month.
The exchange has faced regulatory action in the UK in March, Japan in May, and Canada in June.
A technology supplier has not been identified, but the measures include an identity document and selfie biometric check for level 1 verification, and proof of address for KYC level 2.
Blinking for banking
Blinking has been selected by AIK Bank to provide identity document verification, face biometrics and liveness detection. The partnership makes AIK Bank the first fully digital bank in Serbia, according to the announcement, and provides identity verification for customer onboarding within 7 to 10 seconds.
“The technology is easily accessible to everyone. Applicants do not have to install any additional applications – mobile phone or computer and Internet connection are the only requirements. In this way, it is possible to prove the identity of the end user in a few steps, enabling applicants to proceed with the use of different products – account opening, cash loan applications, credit cards and refinancing loan applications and many more other services. The process is simple, easy to use, intuitive and does not require any technical knowledge from the applicants. (The) process is approved by the National Bank of Serbia, with the highest security standards and the best user experience,” says Milos Milovanovic, COO of Blinking.
Blinking is ISO-certified for 27701, 27001 and 9001 data privacy-related standards. The company serves financial institutions, telecommunications companies, online gaming sites and organizations that need to remotely identify clients.
Trust Swiftly for ecommerce
Trust Swiftly has launched a platform with 15 different customer identity verification methods, from selfie biometric liveness and social media checks, to help businesses prevent ecommerce fraud.
The customizable platform allows business to combine multiple authentication methods to build efficient and enjoyable customer experiences, the company says, and is offered on a pay-as-you-go basis. Clients can store customer data in dozens of regions worldwide to meet privacy requirements.
Trust Swiftly says its platform can be set up quickly and easily with no additional coding for integration.
Regula Forensics for remote exams
To fight fraud in online tests and exams, Pearson VUE has selected the Regula Document Reader SDK for remote candidate verification.
Test-takers take a picture of their government-issued ID, and Regula compares it to a database it claims is the largest in the ID verification market, with more than 10,000 document templates from 248 countries and territories, analyzed with optical character recognition.
The online proctor was using Idemia ID document verification under a 2019 deal.
‘’We’re delighted to partner with the industry leader in computer-based testing and provide identification verification for millions of test-takers worldwide,” Regula Forensics President Arif Mamedov. “We’re confident that our experience and expertise in the field of forensics technology will play a key role in helping Pearson VUE to further advance its excellent OnVUE solution, which has played such a vital role in helping people to pursue important certifications over the last year.’’
Smart Engines for car insurance
AXA Group partner RESO-Garantia is using Smart Engines’ Smart ID Engine to onboard car insurance applicants with OCR processing of ID documents.
Documents can be scanned or photographed for secure validation, after which they can buy or renew insurance policies online.
“In spite of the fact that such solutions for document recognition appeared a long time ago, they did not then fully meet the requirements of online procedures and business processes when working with document photos and recognition speed. For our customers, we chose a software product of Smart Engines, which enables us to extract data in less than 1 second and works with confidence with photos taken on a mobile phone,” said Dmitry Gorchilin, chief of the Information Technology Department of RESO-Garantia.
Shufti Pro for dating scams
Shufti Pro has been providing real-time biometric identity authentication for online date-screening platform DateID for two years, and in that time the company’s customer acquisition rate has grown by 300 percent, with a 28 percent reduction in fraud and a 150 percent drop in chargeback claims, according to a joint announcement.
DateID builds data-rich profiles of online dating users by scanning the web with artificial intelligence models compiled in a searchable database. When a user’s identity is confirmed, they are given a watermarked photo for use on dating sites.
“Shufti Pro’s UX is very well-thought-out compared to some other platforms we tested,” states Remy Tennant, the founder DateID.