"As fraudsters work to find ways to commit fraud and financial crime, businesses must engage the most secure tools to prevent fraud at source"
FR: Can you tell us a bit about yourself and your role at ID-Pal?
After working as a trader and stockbroker for over 20 years, I gained expertise as a qualified charting analyst and financial adviser. Throughout my career, I encountered significant challenges in complying with Anti-Money Laundering (AML) regulations. Determined to find a solution, I embarked on a mission to create ID-Pal.
I realised that the market lacked any offering that was compliant with regulations such as the GDPR, AML, and Know Your Customer (KYC), or that provided an off-the-shelf solution that met these requirements.
Understanding how frustrating complicated integrations can be and the consequently delays in implementing effective fraud prevention measures – I wanted to create a solution that was the complete opposite experience of all that I had seen to date and built it with the requirements of the financial services industry in mind.
FR: How does ID-Pal support businesses, for instance to combat fraud?
ID-Pal is a game-changer for many businesses in terms of identity verification and AML screening processes. With our solution, businesses can go live within a single day.
What sets ID-Pal apart is our unique combination of biometric, document and database checks, which provide leading-industry accuracy to verify an identity in real time. We cater to over 30 industries, offering a seamless, secure, and convenient solution that tackles fraud while ensuring strict compliance with GDPR, AML, and Know Your Customer (KYC) requirements.
By offering smart decision-making and automated workflows, we enable fraud and risk teams to streamline their processes and mitigate any risks.
FR: How are ID-Pal continuing to expand their activity and global identity verification coverage?
Since our launch in the UK in May 2022, ID-Pal has experienced remarkable success, with over 30% of our revenue originating from businesses in that region in just one year. In the US, it is also showing promising signs of mirroring the success we have witnessed in the UK.
As we look ahead, we are excited about the upcoming milestones for ID-Pal. We have just recently launched our PEPs and sanctions screening solution. This solution is customisable to the specific needs of many regulated industries we serve including wealth management, accountancy, real estate, recruitment, insurance, and legal sectors. Businesses in these industries can now access a robust solution that offers thorough checks for PEPs, sanctions lists, adverse media, and ongoing monitoring, all tailored to the specific needs of each industry.
We always focus on steady growth in new markets and expanding our offering as we do so. In this way we maintain the quality of our product and service to deliver an exceptional standard of security and compliance.
FR: What makes ID-Pal stand out as an identity verification provider?
We have a truly technology-first approach to fraud prevention, and we understand the importance of maintaining a user-friendly experience while enhancing security measures. Our solution can seamlessly perform document verification, facial matching, liveness testing and address e-verification in seconds and our technology works diligently behind the scenes to make the process complex for fraudsters, while ensuring a seamless and hassle-free experience for users.
Businesses can verify an identity remotely or in person via our app, and ID-Pal is also available as an API or SDK to integrate with existing processes. Being ISO 27001 certified we place the utmost importance on security and compliance in all our operations, ensuring that the personal data of end users is always safeguarded.
By using advanced technologies for identity verification and to prevent fraud at source, we are removing the risk of ‘human error’. Effective management of customer's personal data is a crucial aspect of compliance with data protection, AML, and KYC regulations. However, many organisations still struggle in this area.
In combining multiple layers of verification businesses can enhance the accuracy and reliability of their identity verification processes. Document verification ensures the authenticity of the document and alongside the use of biometrics which adds an additional layer of identity verification.
FR: With the rapid development of technology such as AI, what new trends are you seeing in fraud and the financial industry?
In the past organisations only had first-generation methods of identity verification providers that are typically database-reliant and powered by manual review in the background. Using AI for facial matching, liveness testing and document verification, being then supported by database checks is the more robust modern approach. The use of AI also enables to detect any anomaly, for example if a document or image has been tampered with and helps reduce fraud at source.
ID-Pal for example can detect fraudulent attempts to deceive liveness checks or the authenticity of documents. This ensures that only genuine individuals are verified, and documents validated, enhancing the overall accuracy and integrity of the identity verification process.
Traditional identity verification methods often rely on manual processes and outdated databases. They lack the adaptability and agility required to effectively combat fraud, as fraudsters constantly find new ways to utilise advanced technologies and techniques to deceive traditional verification systems.
FR: Considering recent legislation in the UK, such as the Online Safety Bill, what are your expectations for future financial regulation?
If we look at the UK’s national fraud strategy which was announced recently, while clear progress has been made, the speed at which it’s being rolled out is slow. For example, within the financial services industry, it has become evident through conversations with our customers that a greater emphasis on collaboration is essential as well as reporting.
It’s about understanding the day-to-day realities of complying with AML and KYC while driving conversion rates, finding that balance is key. There needs to be a cross-industry drive to embrace AI-powered fraud prevention technology. As fraudsters work to find ways to commit fraud and financial crime, businesses must engage the most secure tools to prevent fraud at source from damaging their business financially and reputationally.
Secure ways to capture, verify and store customer identity documents should be the priority for any industry, regulated or not.
Organisations need to undertake their digital transformation and embrace the benefits of a fully digital identity verification process, or fear of finding themselves with a fraud prevention strategy that is not fit for purpose.
