Selfie biometrics adopted by fintechs amid 70% fraud rate spike at financial institutions

Overall fraud incidents are up 20 percent, according to findings from the Identity Fraud Report 2024 from ID verification platform provider Veriff. Financial institutions saw even higher rates of fraud increases, with 70 percent of institutions reporting an increased fraud rate in the past 12 months in a 2023 annual findings report from AML provider Featurespace.

Veriff’s findings show the overwhelming majority – 93 percent – of financial services fraud was identity fraud. One in 15 verification attempts were fraudulent. Moreover, 98 percent of financial institutions see generative AI as a viable solution to combat fraud, and 70 percent are in the process of learning more about AI, according to Featurespace.

In response, entities are beefing up ID verification defenses. Fourthline and Oliu have announced being selected as biometric ID verification providers for Qonto and PayTrie, respectively.

Qonto chooses Fourthline, PayTrie selects Oliu

European digital identity verification and onboarding firm Fourthline has announced that business finance app Qonto will use its identity verification for customer onboarding. Qonto will be able to authenticate electronic signatures, verify document authenticity, match face biometrics and use OCR through customized user journeys powered by a single API from Fourthline.

Qonto services more than 400,000 customers and has reached unicorn status in 2022.

Meanwhile, ATB Ventures has announced that PayTrie, a Canadian stablecoin trading platform, has selected Oliu, ATB Ventures’ selfie biometrics ID verification product, for its customer onboarding.

Because of the Oliu integration, PayTrie customers can now verify their identities using physical and digital IDs in compliance with Canadian regulators’ ID verification guidelines. This securely reduces user drop-off rates and streamlines the verification process, ATB says.

Oliu can play an essential role in mitigating digital fraud in the country. In 2022, digital fraud cost Canadians CA$531 million (US$391 million).

The collaboration “represent[s] a significant leap forward in enhancing security and convenience for investors,” said Azim Esmail, managing director of growth at ATB Ventures in the announcement. “By leveraging Oliu’s cutting-edge digital ID verification, we aim to redefine the onboarding experience for PayTrie and its customers, ensuring a swift, highly secure, and user-friendly process.”

Lloyds app uses NFC for passport scanning

Lloyds Bank has announced it will use NFC to allow UK customers to scan the chip in their passport for the bank’s mobile app, according to National Technology News. The bank claims to be “amongst the first” to use NFC for ID verification in UK banking.

NFC speeds the application process and reduces the risk of errors by pre-filling data fields. The bank announced the launch of its digital ID app, which uses selfie biometrics from identity verification provider Yoti, back in October.

IDVerse wins at Banking Technology Awards

ID verification provider IDVerse has announced it has won the Best Identity Verification System Award at London’s 2023 Banking Technology Awards.

IDVerse’s entry focused on fraud detection and digital transformation. The company’s algorithm achieves 99.99 percent accuracy, according to the announcement.

The Banking Technology Awards are now in their 24th year.

Article Topics

ATB Ventures  |  banking  |  biometrics  |  document verification  |  Featurespace  |  financial crime  |  Fourthline  |  identity verification  |  IDVerse  |  Oliu  |  onboarding  |  selfie biometrics  |  Veriff  |  Yoti