Fraud, deepfake threats rising as biometric IDV forecast for 4X market growth by 2030
Face biometrics and liveness detection are proving effective against a rising tide of online fraud, in terms of the number of attacks and their sophistication, studies by Veriff and Onfido respectively show, leading to a large piece of the overall identity verification market. Identity verification technology customer wins have also been announced by GBG and iDenfy, with the latter also striking a new AML partnership with A.ID.
Biometric authentication made up $2.63 billion of the overall $7.63 billion identity verification market in 2020, and is expected to make up the largest segment in the market by 2030, at $11.7 billion out of an overall $33.19 billion, according to a new report.
The ‘Global Identity Verification Market Outlook 2030’ report from Research Nester Pvt. Ltd forecasts a 16.32 percent compound annual growth rate for the market over the forecast period.
The report breaks the market down by component, verification and deployment type, organization size, and end-user industry, and analyzes market dynamics and opportunities.
North America is expected to remain the largest target region, with identity verification revenues growing from $2.85 billion in 2020 to $12.66 billion in ten years.
Veriff, Onfido digital identity fraud reports aligned on deepfake threat
The 2021 Identity Fraud Report from Veriff shows a 61 percent increase in fraudulent activity in the fintech, mobility and crypto industries from 2020 to 2021.
Identity fraud has doubled on a year-over-year basis, Veriff says, and now accounts for two-thirds of all fraud incidents globally. The problem is even worse in the United States than in Europe, according to the findings from the company’s fraud team.
ID cards were the document of choice in 33.9 percent of fraud attacks, followed by passports, which were used in 29.2 percent of attacks observed by Veriff. Both document types’ numbers are up from last year’s report.
“Concepts like AI-based video editing and augmented video processing are not just buzzwords anymore,” comments Veriff CPO and Co-founder Janer Gorohhov. “Users online can access plug-and-play products that enable them to use the power of deep learning and advanced AI to mask, anonymise, and alter images and videos. Therefore, there’s a growing need for solutions like Veriff’s technology that can catch deepfakes,” concludes, invoking the company’s biometric liveness detection technology.
Veriff has also announced that it has reached ten thousand identity document types found in its internal database.
The company reviews the process by which it arrived at the milestone in a blog post interviewing three members of the team behind Veriff’s specimen database, which apparently they refer to as ‘BOB.’
Onfido’s 2022 Identity Fraud Report, meanwhile, examines trends in biometric fraud, and shows an increase in sophisticated fraud attacks of 57 percent from a year ago, with ‘medium’ sophistication attacks making up 47 percent of all ID document fraud over the past 12 months.
Fraudsters, according to Onfido, are continuing to take more professional approaches, as well as a curious uptick in weekend fraud attacks that may indicate a new class of side-hustle cybercriminals.
“Large-scale operations often undertaken by criminal fraud rings have the resources to conduct sophisticated fraud such as deepfakes, 2D and 3D masks. They might also resort to techniques like coercion. Businesses will see fewer of these types of attacks, but they are the ones that can cause the most damage in the shortest space of time,” states Michael Van Gestel, head of Global Document Fraud at Onfido. “By incorporating biometric authentication and other sophisticated identity verification methods, businesses can ensure that no matter how fraudsters try to capitalize on the changing situation, they can significantly lower the risk of fraud to their organization and customers.”
The report finds that biometrics are still a major deterrent to fraud attempts, and the company found the lowest-yet spoof rate observed in checks made with its video solution, at 0.17 percent of all transactions. Photos of screens continue to be the most common biometric presentation attack type, making up over half of spoof attempts, as Onfido says most biometric fraud remains ‘unsophisticated,’ at least for now.
The results also vary significantly depending on the country issuing the ID document, with those from the UK and Italy spoofed close to nine percent of the time, compared to nearly two percent for Dutch and Canadian IDs.
Customer wins for GBG, iDenfy
GBG is providing automated affordability checks to Scout Gaming to help protect the latter’s customers from gambling more than they can afford.
Scout Gaming also utilizes GBG’s identity verification with selfie biometrics for know your customer (KYC) and anti-money laundering (AML) checks, and is automating its ID document checks with GBG IDScan.
iDenfy has entered a collaborative partnership with A.ID to provide identity verification technologies, including selfie biometrics, as part of a platform tailored to the higher-risk segments of the financial services market.
Freelancer hiring platform JobHireHub has also selected iDenfy to secure its service against fraud, a common problem in the freelance industry, according to the announcement.
The companies say they share a common emphasis on affordable pricing for their clients.
A.ID | biometric liveness detection | biometrics | deepfakes | digital identity | face biometrics | fraud prevention | GBG | iDenfy | identity verification | market report | onboarding | Onfido | Veriff