Fraud tactics are evolving rapidly in today’s digital-first world, with criminals harnessing advanced technologies such as Generative AI to increase the scale, speed, and frequency of attacks. These days, fraudsters can easily create hyper-realistic counterfeit identity documents at scale, using them to bypass traditional onboarding checks and gain unauthorised access to legitimate services to facilitate money laundering and fraud.
At Cynopsis, we understand how challenging it can be to keep up with the rapidly evolving tactics of fraudsters. That's why we’ve proactively designed Ares 3.0 with robust safeguards to help your institution address tampered ID documents, prevent identity fraud, and stay ahead of ever-changing regulations.
The Growing Threat of Identity Fraud
The rise of AI-driven fraud is just one part of a larger problem. Identity fraud, in general, is escalating not only in the number of instances but also in scale globally, with significant consequences for institutions and businesses.
By 2025, the global cost of cybercrime — including fraud, scams, identity theft, breaches, ransomware, and more — is projected to increase to $10.5 trillion annually. That’s not all. Another recent report on identity fraud observed the occurrence of one deepfake injection every five minutes over the past year. Meanwhile, the forgery or tampering of digital documents has seen an alarming threefold increase year-on-year.
These new data points make it clear that traditional fraud prevention controls are no longer as effective and are struggling to keep up with these advanced threats. To combat these risks effectively, institutions need robust solutions that offer safeguards specifically designed to address these new challenges.
This is where the Identity Document Verification (IDV) feature plays a crucial role — not just as an added security measure, but as an essential building block that enables accurate risk assessment, AML screening, and continuous monitoring of risk profile.
How Identity Document Verification Works
Identity Document Verification leverages advanced AI technology to quickly and accurately verify the authenticity and validity of identity documents. This is achieved through an AI-driven workflow that encompasses multi-layered checks across key document parameters to ensure that the document is both genuine and valid. The checks cover four essential authentication categories (Data, Liveness, Visual, and Validity), providing comprehensive protection against tampered or counterfeit documents.
To help you visualise the streamlined workflow offered by IDV, take a look at the diagram below.
Core Advantages of Identity Document Verification for Financial Institutions
While Identity Document Verification helps financial institutions prevent identity fraud, its benefits extend beyond security. A key challenge in customer onboarding is balancing thorough verification with a smooth experience, as disruptions can lead to process abandonment. IDV achieves both, ensuring secure verification without sacrificing the customer experience.
Expansive Coverage for Global Identity Document Types
IDV supports over 2,500 document types across 140 countries, enabling seamless and precise verification of identity documents. The AI-powered technology scans, identifies and analyses documents based on established parameters from trusted sources, including their format, layout and static security features. This ensures businesses can verify customer identities accurately, no matter where they are from.
Customisable to Your Business Needs
Every financial institution has its own compliance and business goals. Some may prioritise quicker onboarding by opting for a higher pass rate, while others might choose to implement stringent controls to ensure robust fraud prevention. With IDV, the document parameters can be customised to fit your institution’s risk threshold or business objectives, allowing institutions to achieve the desired balance between security and business growth.
AI-Optimised Workflow for Speed and Scalability
One of the most important aspects of IDV is its accuracy and speed. Using the latest AI technology, IDV provides compliance officers with a pass or fail result for identity document authenticity in under 3 seconds. This significantly accelerates the onboarding process, ensuring that KYC procedures are faster and more scalable while maintaining high levels of precision and security.
Versatile Integration of IDV into Your Existing Workflow
The Identity Document Verification feature is available as part of a complete digital onboarding workflow or can be accessed as a standalone feature via SDK. Depending on your requirements, either integration method can be a viable choice. Let’s explore and compare your options below.
Complete Digital Onboarding Workflow via Ares 3.0
Ares 3.0 is a robust digital onboarding solution that streamlines customer identification and verification, enabling financial institutions and businesses to onboard more customers efficiently in the same amount of time.Â
This powerful solution offers a comprehensive suite of identity fraud prevention features beyond IDV. For example, controls such as Liveness Test, Dynamic Face Compare are specifically designed to combat deepfake and spoofing techniques. Ares 3.0 is also integrated with government-verified ID platforms and other verification techniques, providing institutions with multiple ways to verify customer identities.
Standalone Integration Using SDK
For financial institutions with established compliance frameworks, IDV is available as a standalone SDK solution. This SDK enables easy integration into your existing systems, whether custom-built or third-party applications. It allows developers to add IDV functionality to both frontend and backend components, ensuring smooth integration with minimal disruption to existing workflows. The SDK gives you full control over the process, ensuring the verification feature fits seamlessly into your institution's protocols.
Get Started with IDV and Supercharge Your Onboarding Process
Are you ready to safeguard your institution against the growing threat of generative AI-enabled counterfeit identity documents? With IDV and Ares 3.0’s suite of advanced fraud prevention tools, you can streamline the identity verification process during onboarding, prevent fraud in real-time, and ensure compliance with rigorous regulatory standards — all seamlessly.
Whether you are looking to integrate IDV into your existing workflow or learn how it works as part of a complete digital onboarding solution, the process is simple and flexible to meet your institution’s needs. For more information, reach out to our solutions experts to learn more or simply download the brochure to inform your research!
