User experience remains paramount amid heightened AI threat
Reports from Liminal and Regula reveal fraud trends from 2023 and insights heading into 2024, while businesses focused on crypto trading, online dating and real estate add selfie biometrics from Au10tix, Yoti and Trulioo to combat fraud with stronger ID verification.
Fraud trends and insights
Ecommerce businesses are prioritizing user experience but see generative AI as a growing concern. A survey of B2B technology buyers from Liminal‘s Fraud Prevention in E-Commerce Buyer’s Guide revealed that 62 percent of respondents prioritize positive user experience and minimizing false declines even if it allows for some fraudulent transactions. The use of AI in ecommerce fraud is also increasing, with 92 percent of buyers reporting a rise in AI-enabled transaction fraud attacks on their platforms.
Regula’s insights for ID verification in 2024 reveal businesses’ heightened concerns about generative AI going forward. Eighty percent of companies surveyed by Regula identify deepfakes as a real threat they expect to grow in the next two years. According to the State of Identity Fraud 2023 report, 43 percent of businesses see preventing identity fraud as a main motivator for implementing ID verification.
The company notes that identity verification adoption has become a trend in various industries beyond the banking and fintech sectors to address fraud and user experience concerns together.
IDV integrations to combat fraud
The latest examples of biometric ID verification adoption in a wider variety of industries include deals to protect cryptocurrency trading, dating and digital signatures.
Crypto trading ecosystems are increasingly adopting selfie biometrics for ID verification, with Au10tix announcing it has been selected to speed the onboarding process for 3.0 Verse, a crypto trading ecosystem. Au10tix says it can verify users in 8 seconds or less, bringing frictionless security to the ecosystem compared to the 15 minutes onboarding took with the legacy method.
Identity verification is also being used to combat fraud in online dating. According to an announcement from Yoti, Jigsaw Dating has integrated Yoti’s identity verification technology to verify identity and reduce fraud with face biometrics. According to the U.S. Federal Trade Commission, in 2022, almost 70,000 Americans were victims of online romantic scams, losing a total of over $1.3 billion.
E-signature service provider Syngrafii announced it now integrates Trulioo Identity Document Verification into its linked Sign and VSR platform to mitigate transaction fraud and strengthen KYC and AML processes. Syngrafii has use cases in real estate, sales, and telecoms.