Fraud is older than money, so it’s no surprise that it remains a scourge of the modern economy. The first recorded financial fraud attempt resolved itself when a Greek trader named Hegestratos allegedly drowned while trying to hatch a plan to sink his boat and reap the insurance rewards.

Today’s fraudsters are far better equipped with the knowledge and tools needed to cause real financial damage – including large language models (LLMs), computerized pattern recognition models, and other algorithmic technologies we call usually AI. As fraud has evolved, the fraud detection industry has grown alongside it and is showing an upward trend: according to Forbes, the fraud detection The value of the digital identity market sub-sector is expected to grow from $28 billion in 2024 to $63.2 billion in 2029.

“The proliferation of data use cases (i.e. entry into LLMs, digital financial transactions, appendix to enhance profile) requires continued evolution of data management technologies to keep up with the increasing pace of users and users. regulatory requirementswrites Jackie Shoback, managing director of 1414 Ventures, an early-stage venture capital fund focused on digital identity. “This, combined with the increasing value and speed of data exchange, further accentuates these effects. Therefore, AI capabilities are becoming extremely valuable in managing and understanding these large amounts of data, driving growth in sectors such as alternative credit and financial identity and biometrics.”

In addition to fraud and fraud detection, data privacy, digital identity and cybersecurity in general are all subject to the seismic impacts of AI technology – which means the next few years are likely to be boom times for companies turning defensive AI against its more hawkish relatives, Auntie GenAI and Uncle Deepfake.

Entrust’s new bank ID platform enables instant issuance of physical and digital cards

Entrustthe Minnesota-based digital identity verification company, has launched a new all-in-one banking platform for consumers. A release said Entrust’s product “enables banks and credit unions to provide high security throughout the customer lifecycle,” with a particular focus on account openings.

“Criminals will continue to take advantage of banks that underinvest in secure digital services,” said Tony Ball, president of payments and identity at Entrust. “DeepfakesData breaches, fraudulent account openings, synthetic identities and phishing attacks are all very real threats to consumers; By using an all-in-one solution, financial institutions are able to ensure their customers are protected at all times.

The platform leverages AI to identity verification with a suite of fraud protections including document validation and biometric activity detection. It has the ability to instantly issue physical and digital cards for faster conversion. And its “connected identity experience” ties customers to a strong, real-world identity and biometric identifier during onboarding, which can be reused or referenced at high-risk moments.

This week, Entrust was named among the companies in the first-ever report from consulting firm Gartner. Magic Quadrant for Identity Verification.

Proof Launches Live Face-to-Face IDV for High-Level Assurance

In a press release, Boston Evidence makes a bold claim: “constructing a fake identity, generating a fake video, or falsifying recordings is now a trivial task, making it impossible to take people at face value online.”

Verify is Proof’s new deepfake defense, “a live, face-to-face experience that delivers high-level assurance with agent-present identity verification, reducing the risk of fraudulent activity such as deepfakes by ensuring that users are legitimate. »

Forged documents, forged signatures, deepfake audio and videoWidespread identity theft: The purely virtual experience, according to Proof, is no longer reliable for high-stakes transactions.

“Trust and security in digital transactions is a challenge that society must solve – but we are losing the battle,” said Pat Kinsel, CEO of Proof. “Fraud is now omnipresent and the existing technological offerings on the market cannot successfully combat it. Businesses can barely handle yesterday’s threats, but suddenly face a new world of deep fakesin which their customers and employees can be perfectly impersonated and records perfectly falsified.

The answer is to combine real-time biometric identity verification, face-to-face engagement and deepfake detection in a platform that allows instant connection to a human agent via a secure video link.

“Once the user enters their personal information (name, address, email, phone number and date of birth), the agent joins and supervises the identity verification process by prompting the user to complete biometric identity verification, which includes taking a selfie and uploading one’s legal identity documents,” the statement said.

Throughout the process, Proof performs automatic analysis of deepfakes to assess fraud risk, supported by Defender of realityThe deepfake detection model of .

ServiceLink integrates Proof IDV into live digital mortgage closings

Proof also secured what a press release calls a “major integration” with a digital mortgage services provider. ServiceLinkwhich will deploy Proof’s Identity product for fraud prevention.

“Fraud in real estate transactions is on the rise,” says Kinsel, “and the industry needs solutions that protect not only digital closings, but all types of transactions. »

Dave Steinmetz, president of the Origination Services Division at ServiceLink, says the integration “provides additional fraud detection points to enhance our existing processes and procedures, allowing ServiceLink to further modernize the closing process for signatures wet manual in person and Electronic signatures.” Identity verification is active from the start of the transaction.

With Proof deployed, ServiceLink is able to offer multiple identity verification methods, from biometric comparison and email and SMS verification to API integration and printed QR codes for on-line transactions. paper, meaning it can implement secure IDV for both digital and traditional fences.

TransUnion Says Government Fraud Prevention Must Consider Digital Inclusion

Combating government agency fraud comes with its own set of challenges, which are explored in a new report Since TransUnion and Scoop News Group. Among them is the issue of digital inclusion.

“Government agencies are responsible for providing a wide range of services to diverse populations, including vulnerable and emerging groups who may lack traditional identification, such as an unexpired driver’s license or other government-issued ID. the government,” the report said. “The identity verification process is further complicated by the need to prevent fraud while ensuring equitable access to services. »

Synthetic identity fraud in a government context, in particular, is exploding, showing a volume change of 184.3 percent between 2019 and 2023. And the costs are not limited to reputation or political capital: according to the United States Government Accountability Office , it is estimated that the federal government loses between $233 billion and $521 billion annually due to fraud.

It highlights TransUnion’s key message: “As federal and state government agencies continue to digitize their services and expand their online presence, robust identity verification and fraud prevention strategies become increasingly more essential. »

Hegestratos may be an old deepfake

Fraud won’t go away, and the increasingly slippery world of the Internet age of AI makes it increasingly difficult to distinguish between what’s real and what’s not. The proven ability to determine what is real will be a key skill in the years to come. For proof, one need only think of the story of Hegestratos, which seems to have been mostly repeated by modern financial services companies as a variation of several similar cases recorded in the selected private speeches of the Greek statesman Demosthenes (384 -322 BCE).

In other words, it’s probably a fraud.

Article topics

biometric activity detection | biometrics | digital identity | document verification | Entrust | financial services | fraud prevention | identity verification | Evidence | TransUnion