AML investment growing rapidly as IDVerse launches fraud prevention tool

y 2028, financial institutions and other sectors will spend 80 percent more on AML systems than the $28.7 billion projected to be spent in 2024, according to Juniper Research’s findings in its Global AML Systems Market 2024-2028 report.

This growth  to $51.7 billion is anticipated to be driven by the use of AI to reduce false positives and improve risk assessment. Generative AI, behavioral analytics, and natural language processing are the top three uses of AI in AML, the report says.

AML use by professional and other businesses in legal, real estate, and non-profit sectors, among others outside of financial markets, will expand and reach $6.3 billion globally by 2028, increasing 170 percent in four years.

Identity verification providers are teaming up with financial institutions to secure transactions and implement effective KYC and AML efforts. Jumio is partnering with NuxGame for AML verification in online gaming. Uqudo is working with Tamara to secure buy-now-pay-later (BNPL) transactions. IDVerse has introduced FraudHub to identify and prevent fraud.

IDVerse introduces FraudHub

Fraud detection provider IDVerse has announced the introduction of FraudHub, which leverages facial recognition to detect and prevent repeat fraud attempts.

FraudHub improves protection against repeated fraud attempts through pattern recognition among users. The software also uses face biometrics to identify similarities in faces or ID details across transactions, helping businesses proactively detect fraud.

After two years of testing, the system is set to be available to IDVerse customers this month.

“Interpol has IFRS, but FraudHub is possibly the IFRS for the rest of us, empowering businesses large or small with cutting-edge, ethical face recognition security solutions that protect privacy,” says IDVerse CTO Matt Adams, referring to the international database of biometric criminal records.

Jumio teams with NuxGame for AML integration

Gambling platform NuxGame is leveraging AI-powered KYC and AML checks from Jumio to bring security and risk management to its platform after it recently enabled direct cryptocurrency purchases on their platform. NuxGame received the GLI-19 certification for adhering to best practices in the iGaming sector.

NuxGame says in a blog post that Jumio’s technology allows it to confidently navigate the complexity of global regulatory compliance.

Jumio’s selfie biometrics were also recently adopted for KYC checks by gambling platform Kaizen Gaming.

uqudo and Tamara create ID verification by BNPL transactions

MEA-based digital identity provider uqudo will integrate its ID verification with Tamara, a fintech platform serving Saudi Arabia and the GCC region, to secure BNPL transactions. Tamara was one of the first companies to obtain a permit from Saudi Central Bank for BNPL services.

The collaboration will streamline user onboarding and strengthen fraud prevention, the companies say.

Uqudo recently struck a deal for infrastructure to serve customers in the MEA with Huawei.

Article Topics

AML  |  biometrics  |  identity verification  |  IDVerse  |  Jumio  |  Juniper Research  |  KYC  |  market research  |  uqudo