Credolab layers in Zoloz biometric identity verification

Companies are investing more in fighting fraud and securing identity: Over the past two years, over 70 percent of firms have increased their fraud prevention and identity verification budgets, according to a survey released by Censuswide and Regula.

An increase in demand is sprouting new collaborations and products designed to prevent fraud, including those from firms such as Credolab and Zoloz.

Credolab partners with Zoloz

Credolab has signed a partnership agreement with biometric identity verification company Zoloz, a Know Your Customer (eKYC) supplier under Ant Digital Technologies, an Ant Group subsidiary.

The collaboration bridges two layers of digital trust – “who the user is and how they behave,” Credolab Co-founder Michele Tucci says in an announcement. The  U.S. and Singapore-based company offers behavioral metadata analytics that help detect fraud and help lenders approve credit for customers.

“By combining Zoloz’s identity verification with our behavioral intelligence, lenders can identify risk earlier in the user journey, reduce fraud losses, and create a frictionless onboarding experience for legitimate customers,” says Tucci.

The duo plans to offer the digital onboarding product to global financial institutions and fintech platforms.

Credolab says that its analytics platform has processed more than 650 million datasets. Its clients include Visa, Mastercard, Transunion and other companies. Earlier this week, the firm published a guide to fintech fraud detection, outlining the most common types of fraud and core fraud detection methods and technologies.

Companies investing more in fraud detection: Regula

Regula’s survey has shown increased investment into identity verification and fraud prevention. The trend is more visible in the financial industry which bears the highest exposure to fraud risks: More than 15 percent of banks say they want to double their budget.

Other sectors are investing too. According to the survey, 17 percent of aviation and crypto companies are planning to double their budgets for identity verification and fraud prevention. Across all industries, two-thirds of businesses have already increased IDV spending, and nearly half are preparing for further double-digit growth, Regula says.

The investment impetus comes from rising fraud numbers, most notably deepfake fraud, which affects 33 percent of companies.

“Executives have finally woken up to the deepfake economy,” says Henry Patishman, Regula’s executive vice president of Identity Verification Solutions. “Just as cybersecurity became non-negotiable a decade ago, identity verification is now core infrastructure for trust in the AI era.”

But the company is also arguing that the tools that most companies are investing in do not match the threat.

Companies across different industries are pinning their hopes on solutions such as behavioral biometrics, Multi-Factor Authentication (MFA), checks against databases and watch lists, automated document verification and human review. While these tools play an important role, Regula says that companies should be moving towards “biometric-first” defenses.

The survey involved over 560 decision-makers working in fraud detection and financial crime in industries such as aviation, banking, crypto, fintech and telecommunications. The research covered four markets, including the U.S., Singapore, Germany and the United Arab Emirates (UAE).

Article Topics

behavioral analysis  |  biometrics  |  Credolab  |  financial services  |  fraud prevention  |  identity verification  |  KYC  |  Regula  |  Zoloz