Veriff report shows comfort with selfie biometrics for online transactions

A convergence of AI-driven technologies and strategic partnerships have been introduced to secure digital identities and access across the financial services sector, including cryptocurrency exchanges, lending and digital payments.

Reports and announcements from identity verification companies such as Veriff, AuthenticID, iDenfy, and Trulioo signal growth in the market for enhanced fraud detection and prevention. The surge reflects the increasing importance of securing digital platforms against high-frequency fraud attempts, which are prevalent in both emerging and established markets.

Veriff’s latest Fraud Index reveals negative trends in fraud attempts, particularly in sectors such as crypto, where anonymity and fast-paced transactions create vulnerabilities. More than a quarter of respondents reported encountering AI- or deepfake-generated fraud in the past year.

The report also underscores the importance of sophisticated AI-powered tools in preventing fraud, and identity verification and biometric technologies are gaining widespread acceptance. This is evident through the 61.74 percent of responders that feel comfortable using IDs and selfie biometrics to verify their identities online, according to the report. Additionally, a comparable percentage (62.44 percent) are at ease using face biometrics to access their online accounts.

In line with the need for AI-powered offerings designed to prevent fraud, AuthenticID recently introduced “Velocity Checks,” designed to combat high-frequency fraud attempts through biometric deduplication, in a bid to help businesses identify fraud attempts before completing a transaction. The company claims that the tool is the industry’s only biometric-based velocity check providing organizations with an offering to detect both individual fraudsters and fraud rings attempting to use multiple identity documents with the same headshot.

iDenfy has been selected by fintech firms Bitlocus and FinCause to secure cryptocurrency exchange platforms and financial services with biometric ID verification.

FinCause is a newly established electronic money institution (EMI) regulated by the Bank of Lithuania. The company’s partnership with iDenfy is to automate its know your customer (KYC) process, with the aim of offering B2B clients a streamlined four-step verification process.

iDenfy will also provide its identity verification technology to Bitlocus, a regulated cryptocurrency exchange platform, to enhance user conversions for a compliant verification process in the crypto market. The integration of AI into these processes focuses on real-time identification and fraud detection.

Expanding global payments security

The global reach of fintech firms is also expanding, with identity verification offerings becoming integral to their operations. An example of this is Trulioo’s extended partnership with Airwallex, which highlights this trend. The integration aims to enhance global payment networks by providing compliant identity verification for users across different markets with selfie biometrics. Airwallex serves 100,000 businesses around the world, according to a case study, after extending its use of Trulioo’s technology from its initial deployment in the APAC region to the Americas and Europe.

The implementation illustrates how international fintech firms are prioritizing security and regulatory  compliance as they scale operations globally, especially in cross-border transactions, where fraud risks are often magnified.

Similarly, Ondato’s partnership with SoftRobotics in the Middle East further demonstrates the importance of secure digital payments and ID verification systems. The partnership emerged to allow banks and financial service providers to adopt advanced identity verification systems to combat fraud and meet regulatory standards, as well as utilize technology to provide a streamlined onboarding process.

AI transforming lending and financial services

Beyond crypto and payments, AI and biometrics are making their mark in the lending sector. Aro’s new Precision service introduces advanced fraud prevention and affordability checks for lenders. Fraud checks are carried out with GBG’s global identity network. By leveraging AI, lenders can better assess risk, prevent identity fraud, and ensure responsible lending, according to the company.

In Australia, ConnectID is adding Singapore-based fintech lender Lendela to its network. ConnectID’s digital identity solution will pre-fill forms during customer onboarding. Lendela’s focus on strengthening the digital lending process through enhanced verification systems showcases how AI is being employed to improve customer trust and reduce fraud risks in the lending industry.

Article Topics

AuthenticID  |  biometrics  |  connectID  |  digital identity  |  face biometrics  |  financial services  |  GBG  |  iDenfy  |  identity verification  |  Ondato  |  selfie biometrics  |  Trulioo  |  Veriff