In April, IDnow, a provider of customised ID verification and KYC systems for high-risk sectors, launched its VideoIdent Flex solution in the UK.
Engineered in Munich, VideoIdent Flex is an enhanced video-led customer verification solution providing clients with built-in AI modules to gauge biometric features of customers. The solution aims to “reduce rising fraud attempts, increase inclusivity, and tackle an array of complex online verification scenarios while offering a high-end service experience to end customers.”
Roger Redfearn-Tyrzyk, Vice President of Global Gaming at IDnow, shared insights with SBC on how VideoIdent Flex will set new standards in KYC by helping customers overcome future compliance challenges and threats.
Video identification remains the most comprehensive method for customer verification. “However, to date, systems delivered to market have been cumbersome to integrate as part of the customer experience.”
As such, VideoIdent Flex leverages live video technology to facilitate real-time interactions between customers and trained experts, not only verifying the authenticity of identity documents but the physical presence of individuals, significantly reducing the risks associated with fraudulent activities.
KYC Blind Spots
The challenges in KYC practices, particularly in the UK, are primarily due to sophisticated fraud techniques such as synthetic identities, document forgeries, and social engineering. Fraudsters use advanced technology to create fake identity documents that bypass standard authenticity checks, posing a significant threat. Additionally, money mules exploit gaps in transaction monitoring systems and the lack of comprehensive background checks.
Redfearn-Tyrzyk noted: “One major blind spot is the sophistication of synthetic identities, document forgeries and social engineering, which are often hard to detect through conventional verification methods. VideoIdent Flex has been designed to help overcome these challenges, making it a crucial step forward in the fight against fraud. It can help reveal these blind spots and enable organisations to see social engineering fraud, identify patterns indicative of money mules and challenge fraudsters who are attempting to use synthetic identities.”
VideoIdent Flex for UK Gambling
The online gambling industry in the UK presents unique challenges, especially in verifying VIP and high-spend customers. IDnow has tailored its VideoIdent Flex service to meet the stringent requirements of this sector. For VIP and high-spend customers, IDnow implements additional verification layers such as deeper background checks and the integration of behavioral analytics.
“IDnow has tailored its VideoIdent Flex service to meet the stringent requirements of the online gambling sector in the UK, with particular attention paid to verifying VIP and high-spend customers. This customisation includes advanced risk assessment capabilities that allow for the differentiation between regular users and those who require enhanced scrutiny due to their spending behaviours or the amounts involved.”
VideoIdent Flex also plays a crucial role in detecting and preventing money mule activity within high-spend customer accounts. By employing advanced IP address tracking, fraud questions, and tailored training for verification experts, IDnow effectively mitigates risks. The use of blacklists, flagging suspicious data combinations, and identifying high-risk documents, countries, and domains further enhances the security framework.
Compliance counts on Human Interaction
Despite advancements in technology, the role of human interaction in verification processes remains indispensable. Redfearn-Tyrzyk emphasises that human oversight is essential “in interpreting complex cases, handling exceptions, and providing a level of empathy and understanding that purely automated systems cannot achieve. Particularly in high-risk sectors, where the consequences of incorrect verification are significant, the blend of technological efficiency with human judgment provides a balanced approach to security and customer service.”
The increasing sophistication of fraud techniques, such as deep fakes and projection techniques, poses a challenge for automated solutions alone. Human experts can deter fraudsters simply by being present during the verification process. Trained to identify deep fakes and other sophisticated fraud tactics, these experts can conduct additional tests, such as random movements and fraud questions, to verify identity authenticity.
For the UK gambling sector, evolving customer verification methods are critical in maintaining compliance with regulatory standards and protecting against financial crimes. The integration of advanced verification technologies with human interaction ensures that gambling operators can provide a secure, inclusive, and responsible gambling environment. This approach is particularly important in addressing issues related to problem gambling and ensuring that the sector operates within legal frameworks designed to protect both players and operators.
Roger Redfearn-Tyrzyk concluded:, “In a world where fraud is consistently increasing, our video capability paired with our experts adds a powerful layer of security, especially for those businesses and customers that require a face-to-face interaction.”
