Stolen or fraudulent identities can lead to threats to your business in the form of account takeovers, fraudulent transactions, and unwanted losses. In fact, it is estimated that US businesses spent almost USD 721 billion in 2021 due to identity-related fraud losses. That’s why it’s critical to have the right KYC compliance solution that helps reduce time and resources organizations spend dealing with fraud.
Plaid launched Plaid Identity Verification (IDV) to help digital financial services apps onboard more good customers quickly and securely. The company’s identity verification is said to verify identities in under 30 seconds with facial authentication from selfie biometrics and secured against synthetic identity fraud, presentation attacks, and account takeovers. It also incorporates a risk engine that analyses email, phone, IP address, and device ID to prevent fraud.
Since the launch in May, the company has been working with hundreds of digital finance companies across different verticals, such as crypto, proptech, neo-lending, banking, and many more. According to the company announcement, fraud continues to be a top challenge for many businesses and when it comes to choosing a comprehensive AML and KYC compliance solution, companies value a secure onboarding experience that doesn’t add friction, paired with a robust fraud detection engine.
According to a recent survey with The Harris Poll cited by Plaid, 76% of Americans say they’re more likely to use an app when they can sign up and access it instantly.
Plaid added a new autofill experience to IDV that makes the sign up process easier to navigate without sacrificing security. With autofill, businesses can speed up verification of their customers from 30 seconds to as little as 10 seconds and improve conversion by ~4-20%.
Eligible customers in the US only need to provide their date of birth and phone number at sign up. Based on that information, Plaid auto-populates additional identity information like full name, address, and social security number that’s associated with the user’s phone number and date of birth, so they don’t have to enter it manually.
Apart from the hundreds of risk signals and anti-fraud checks IDV already handles, the company added more intelligence to their fraud detection engine that analyses behavioural attributes during the signup process.
By assessing device behaviour and how a user enters their personal identifiable information (PII), Plaid is reportedly able to catch risky behaviour consistent with bad actors, fraud rings, and bots. The engine examines how fast a user types in their PII, the order in which they input data, or whether they copy and paste their data.
By analysing these new signals, the fraud detection engine helps businesses catch risky behavior and only sign up good customers.
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