Financial fraud continues to increase, not only in frequency but also in sophistication. More than 60% of fraudulent accounts get past traditional identity verification checks, so identity verification must go beyond simply ticking regulatory compliance boxes.
The growing use of technologies such as artificial intelligence by cybercriminals has transformed attacks: account takeovers, money laundering, or deepfake scams are putting even the most robust cybersecurity strategies to the test. Moreover, financial institutions are facing increasing pressure from regulators to protect their users, avoid financial losses, and ensure regulatory compliance.
The challenge is not only to identify threats in time, but also to do so without adding friction to the user experience. The advanced Digital Identity Verification (DIV) solutions from Facephi are designed precisely to meet this dual challenge: enhancing security and, at the same time, optimising the relationship with the customer.
What is DIV and why is it essential in the financial sector?
Digital identity verification (DIV) combines advanced biometric technologies, such as facial, fingerprint, or voice recognition, with artificial intelligence to authenticate users in real time. These solutions offer comprehensive control, adapting to the multiple interactions that occur on digital platforms.
In the financial sector, DIV has become an essential ally. Today, fraud is no longer limited to traditional methods; rather, financial institutions are also facing more complex attacks:
Account takeovers
Attacks in which a criminal takes control of legitimate accounts to carry out fraudulent transactions. These practices are costing financial institutions millions annually.
Deepfake attacks
The use of artificial intelligence to create fake identities using extremely realistic images and videos. This type of fraud can result in losses averaging $480,000 per incident.
Authorised Push Payment (APP) scams
Where customers are manipulated into making transfers to accounts controlled by criminals. Countries such as the United Kingdom are already regulating the responsibility of the sending and receiving banks in these cases, setting a global precedent.
Biometric technologies: Your ally in preventing financial crime
Facephi’s solutions offer significant advantages over traditional methods by efficiently detecting fraud without disrupting operations or the customer experience. Our technology integrates proactive measures such as:
Biometric technologies: Your ally in preventing financial crime
Facephi’s solutions offer significant advantages over traditional methods by efficiently detecting fraud without disrupting operations or the customer experience. Our technology integrates proactive measures such as:
- Liveness detection: distinguishes between a genuine interaction and a fake presentation.
- Image depth analysis: identifies photos, videos, or 3D masks used in presentation attacks.
- Specialised deepfake identification algorithms: analyses inconsistencies in facial movements, skin textures, and reflections generated by artificial intelligence.
The flexibility of biometric solutions allows them to be applied in multiple scenarios, such as authentication in mobile apps or account recovery. For example, many financial institutions have already adopted these tools to implement passwordless authentication (passwordless MFA), improving trust and eliminating the risks associated with traditional credentials.
DIV solutions: Beyond security
The impact of DIV is not limited to fraud prevention. These solutions contribute to the sustainable development of financial organisations by simplifying compliance and reducing operational risks. They also automate processes, eliminating manual errors and improving accuracy in user validation. Making sure the customer is at the heart of the experience results in seamless flows, such as digital onboarding or account recovery in a matter of minutes.
The advancement of financial crime demands solutions to meet these challenges. At Facephi, we develop digital identity verification technologies that combine state-of-the-art security with the best user experience. Protect your organisation, comply with the most demanding regulatory standards, and strengthen your customers’ trust with our innovative solutions.
