Heather R Morgan

Why Identity Verification Needs Artificial Intelligence Now, More Than Ever

Like many busy professionals, I had been procrastinating switching banks and setting up new financial accounts because I was dreading spending time on long and confusing applications.

I also wanted to sign up for some crypto exchanges my friends had told me about to sell some currency I had been holding for a while.

How bad customer experience uncovered a major business opportunity begging for a better software solution:

I decided to try to knock out all these todo’s at once to just get them over with.

But the processes were even worse than I anticipated.

Each site had a different identity verification process to satisfy the United States' KYC (Know Your Customer) and AML (Anti Money Laundering) requirements. Not only did it take me time to gather and upload my information, sometimes the instructions were confusing, and the many of the solutions being used to process my information seemed buggy or even insecure.

Most seemed pretty manual too: I had to either stay online without losing connection while I was on hold for a specialist to verify my account, or spend weeks waiting to hear that my account had either been confirmed or that more information was still needed (or that my the image I uploaded somehow didn't meet their requirements).

From a customer perspective, the identity verification process sucked, but as an entrepreneur I also thought about how much these solutions must be costing each of these companies.

Not only were these verification methods expensive in terms of support and troubleshooting, they were probably extending customer onboarding time and also leading to churn. Furthermore, it seemed like some of the verification methods were pretty basic, and could potentially be easily defeated by fraudsters.

What’s wrong with most identity verification solutions on the market today:

I quickly became fascinated with this space, and began researching the various identity verification solutions in the market. Many of the “tech solutions” still appeared to be fairly manual, which meant they were more expensive and also prone to certain types of errors.

As I learned more about how financial institutions were verifying their customers'identities, and the unstructured nature of sanctions list data, I saw endless opportunities for inaccuracies. Not only could these mistakes lead to legitimate customers accidentally getting flagged or banned, but they could potentially be letting identity thieves and terrorists slip through the cracks.

I felt like I had to do something.

Creating a new standard for identity verification and the management of personal information

I had already been researching the latest advances in Artificial Intelligence (AI) technology, and was exploring different business applications for logistics and finance.

I spoke with several friends with a background in cybersecurity about how financial institutions could implement better standards for privacy and security while still being more user-friendly. One of the most innovative and user-focused approaches I heard was from Dutch Lichtenstein (now CTO at Endpass).

We both felt that it was in everyone’s best interest to make it easier for consumers to securely register, get their identities verified, and sign in to financial institutions. With the rise of cryptocurrencies and the increasing move to digital financial management, more and more people would be going through these processes.

We also realized that since customers’ identities don’t change (unlike fraudsters), they shouldn’t have to keep repeating the same processes everytime they wanted to sign up for a new financial account.

We wanted to give customers a portal where they could conveniently and accurately verify their identity, securely store their identity documents and personal information, and ultimately choose who which institutions they shared their information with in a single click.

And we wanted this experience to be as simple as signing in with Facebook or Google.

We began working on the solution, and Endpass was born.

Our mission against global fraud & vision for the future of financial compliance

We believe better identity verification methods and security protocols are the answer to combatting the rampant increase in fraud and other identity theft.

Financial institutions need better tools to help them swiftly and accurately verify identities, while also helping them spot trends in fraud and other areas of risk. While some human intelligence may be needed to train the AI on some rare edge cases, with time it will quickly become more accurate at differentiating real and fake identities than any human ever could.

As the prevalence of deepfakes increase and more malicious actors start using AI to generate better forgeries at scale, it is critical that we develop advanced technology to counter these criminals.

Endpass is doing exactly that.

Through aggregating the data of both legitimate customers and accounts that have been flagged for fraud and other abuse, our AI can begin to reverse-engineer fraud patterns and “digitally fingerprint” fake documents and accounts to their original source.

Want to join us in the global fight against cybercrime?

Learn how you can implement Endpass and see what career opportunities we currently have available.