Lithuanian-based identity verification firm iDenfy has added SMS and email verification tools to its Know Your Customer (KYC) solution. The main goal is to expand its approach to user authentication and fraud prevention. The new feature allows businesses to confirm the validity of customers’ contact details early in the onboarding process, helping to detect potential fraud or false data submissions before full identity checks take place.
Under the new system, users are required to enter their phone number or email address and then verify it through a one-time code sent by iDenfy. Only after this step can the standard ID verification process, using government-issued documents, be completed. According to company officials, this dual-layer verification aims to prevent unauthorised access to high-risk services, including online payment platforms and cryptocurrency exchanges.
Improving fraud prevention in onboarding
The additional verification tools are designed to identify issues such as invalid contact information, repeated or suspicious data entries, and attempts at creating multiple accounts. iDenfy officials explained that the system flags irregularities in real time through the company’s dashboard, alerting clients before a full ID or biometric check is initiated.
A representative from iDenfy highlighted that many clients in financial and digital sectors had requested simpler authentication options that would not disrupt the overall KYC process. The company describes its solution as an ‘early checkpoint’ that screens out unverified users and reduces the risk of fake profiles entering a system.
The new verification step complements rather than replaces traditional ID checks, serving as an added layer of defence against fraud, including account takeovers and synthetic identity creation. The tool integrates with iDenfy’s existing suite of identity management technologies, which include document authentication, biometric verification, and risk scoring.
Recent figures from the US Federal Trade Commission show that consumers lost over USD 12.5 billion to fraud in 2024, a 25% increase from the previous year. Many such incidents involved unverifiable or falsified contact details, underlining the importance of early data validation in preventing financial crime.
