iDenfy, a Lithuania-based RegTech firm specialising in identity verification and fraud prevention, has announced a partnership with Hetzner, a Germany-based cloud and hosting infrastructure provider, to integrate automated KYC verification into Hetzner's customer onboarding process.
Founded in 1997, Hetzner provides dedicated servers, cloud instances, internet storage, and managed hosting services to customers worldwide, serving a client base ranging from individual developers and startups to enterprises running mission-critical systems. The integration of iDenfy's identity verification solution replaces a manual, multi-step registration process with an automated flow designed to improve completion rates and reduce onboarding complexity.
Verification capabilities and hosting sector context
The iDenfy solution prompts users to submit a government-issued ID and complete a biometric selfie check. The system performs facial feature analysis, three-dimensional liveness detection to confirm physical presence, and document authenticity validation against a database of over 3,000 authorised document types across more than 200 countries and territories. iDenfy states the verification process completes efficiently for legitimate users, with its algorithms reporting an accuracy rate of 99.8% for KYC verification. Where irregularities are detected, the system escalates to compliance specialists for manual review, combining AI automation with human oversight.
Furthermore, identity verification has become a regulatory requirement across the hosting sector, where fraudulent account holders can use infrastructure to distribute malware, host phishing campaigns, launch distributed denial-of-service attacks, or facilitate payment fraud. A single fraudulent user can expose IP addresses to blocklists, disrupt service availability, and damage a provider's reputation with legitimate clients. The US Federal Trade Commission received approximately 2.6 million fraud-related cases with total losses exceeding USD 12.7 billion in 2024, with analysts noting increasing use of AI-generated synthetic identities that render traditional manual screening insufficient for high-volume digital services.
iDenfy's pricing model charges only for approved or completed verifications, with rejected verifications excluded from costs to provide predictable expenditure for clients. Commenting on the news, Domantas Ciulde, CEO of iDenfy, said infrastructure providers sit at the core of the digital economy, and that verifying identities at the point of entry allows hosting providers to protect themselves from onboarding fraudulent users in a way that is efficient, scalable, and user-friendly.
