October 13, 2022

Faster digital onboarding and smarter fraud prevention

Ryan Surveski

Stolen or fraudulent identities can lead to threats to your business in the form of account takeovers, fraudulent transactions, and unwanted losses. In fact, it is estimated that US businesses spent almost $721bn in 2021 due to identity-related fraud losses. That’s why it’s critical to have the right KYC compliance solution that helps reduce time and resources organizations spend dealing with fraud. We launched Plaid Identity Verification (IDV) to help digital financial services apps onboard more good customers quickly and securely.

Since the launch in May, we’ve been working with hundreds of digital finance companies across many verticals, such as crypto, proptech, neo-lending, banking, and many more. Fraud continues to be a top challenge for many businesses and when it comes to choosing a comprehensive AML and KYC compliance solution, we’ve heard that companies value the following:

  1. A fast and secure onboarding experience that doesn’t add friction

  2. A robust and constantly evolving fraud detection engine 

That’s why we’ve added two new features to Plaid Identity Verification across each of these dimensions to help you sign up customers faster and better detect and prevent fraud.

A faster verification process to increase conversion and signups  

Your relationship with your customer starts before they make their first trade, deposit funds, or submit a loan application. It begins when they first engage with your application. In fact, based on a recent survey with The Harris Poll, 76% of Americans say they’re more likely to use an app when they can sign up and access it instantly.

To do that, we’ve added a new autofill experience to IDV that makes the sign up process as seamless and instant as possible without sacrificing security. With autofill, you can speed up verification of your customers from 30 seconds to as little as 10 seconds and improve conversion by ~4-20%.   

Eligible customers in the US only need to provide their date of birth and phone number at sign up. Based on that information, we auto-populate additional identity information like full name, address, and social security number that’s associated with the user’s phone number and date of birth, so they don’t have to enter it manually. We also assess phone number history and confirm real-time possession to ensure you minimize your risk exposure while signing up customers faster.

A more intelligent anti-fraud engine that assesses behavioral risk 

According to PWC, organized crime and fraud rings are one of the top drivers of the rise in fraud impacting businesses in 2022. That’s why we constantly evolve our fraud detection engine to address the latest threats and emerging fraud tactics. In addition to the hundreds of risk signals and anti-fraud checks IDV already handles, we’ve now added more intelligence to our fraud detection engine that analyzes behavioral attributes during the signup process. 

By assessing device behavior and how a user enters their personal identifiable information (PII), we are able to catch risky behavior consistent with bad actors, fraud rings, and bots. We look at things like: how fast a user types in their PII, the order in which they input data, or whether they copy and paste their data. By analyzing these new signals, our fraud detection engine helps you catch risky behavior and only sign up good customers.  

Ready to get started?

IDV makes it easy for you to verify your customers’ identities, reduce fraud, and satisfy compliance requirements. By providing a seamless, more secure onboarding experience, we’re here to help you to increase conversions and sign up more good customers faster so they start transacting with your business.

This is just the first of many products we’re building within our identity verification product suite. Fraud is a growing industry problem. We’re continuing to explore new ways to help mitigate and reduce fraud for the entire ecosystem at scale.

IDV is built into the Plaid Link SDK so it’s easy to get started. If you're a Plaid customer, you can get started with IDV via the Plaid dashboard.

Already using IDV? These features are included at no additional cost and are available in your Plaid dashboard.

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