iDenfy, a global RegTech company specializing in identity verification and fraud prevention, unveils new strategies to combat the growing crisis of synthetic identity fraud within the iGaming sector.
The company highlights critical updates to its Know Your Customer (KYC) and Anti-Money Laundering (AML) platform in response to an observed 15% rise in fraud rates across various high-risk industries, including iGaming. iDenfy advocates for a hybrid approach that combines technological solutions with human oversight to effectively tackle challenges like synthetic ID and generative AI fraud.
Addressing AI System Errors
iDenfy's CEO, Domantas Ciulde, emphasizes the importance of skilled personnel in refining their identity verification product. The company has intensified investments in its team, recognizing them as the cornerstone of development.
A significant portion of insights and enhancements is credited to the in-house KYC experts who manually verify ID document data, a crucial step in reducing false positives that could hinder legitimate users. iDenfy’s KYC team is operational around the clock, ensuring seamless user onboarding and minimizing the risk of delays.
Customer Onboarding and Synthetic Identity Fraud
A significant portion of insights and enhancements is credited to the in-house KYC experts
iDenfy's in-house team offers a rare blend of expertise, as highlighted by Ciulde: “A highly skilled in-house team is extremely valuable. We started with a few members manually re-checking documents and built a full team from scratch.”
The company explains that synthetic identity fraud involves complex tactics, such as combining real identification data—like Social Security numbers and addresses—with fake names or AI-generated images. Advanced techniques, including deepfake videos, complicate verification processes by mimicking biometric data used in facial recognition.
Challenges in Digital Onboarding
While increased automation is the typical response to fraud, reported fraud losses suggest that automation alone has not sufficed. Traditional AI systems, reliant on existing attack patterns, struggle against new, generative AI methods specifically crafted to evade detection.
Manual reviews, though effective, are financially unfeasible at the required volume. iDenfy’s solution leverages over 3,000 government-issued document types from more than 200 countries, efficiently verifying user identity and implementing 3D liveness detection to check biometrics in under three minutes.
Detection of AI-Generated Media and Suspicious Anomalies
Upon registration, iDenfy filters out deepfakes and AI-synthesized biometric content
Upon registration, iDenfy filters out deepfakes and AI-synthesized biometric content, a crucial task for maintaining both speed and scalability.
Documents that appear dubious are flagged for further scrutiny. Unlike platforms that only resort to human reviews when necessary, iDenfy manually inspects each identity audit. This rigorous process, aided by the compliance team’s expertise, identifies fraud and anomalies beyond AI’s current capabilities.
Continuous Monitoring and Compliance
iDenfy extends its verification efforts beyond initial onboarding with ongoing AML screenings linked to global sanctions, Politically Exposed Persons databases, and adverse media.
This continuous monitoring helps prevent reputational damage and ensures compliance with regulatory requirements. For businesses, iDenfy’s AI Company reviewer expedites KYB decisions, corroborating documentation and verifying Ultimate Beneficial Owners against government records. Flagged inconsistencies are immediately escalated for manual review.
The Global Impact of Synthetic Identity Fraud
Synthetic identity fraud is a global concern, notably stealing over $35 billion from US lenders in 2025 due to fake identities used to establish new accounts. Annual losses worldwide might reach between $20 billion to $40 billion, driven by generative AI tools.
Fraud typically starts with the creation of hybrid identities that blend stolen personal data with fabricated information to bypass verification checks. Ciulde concludes, emphasizing the synergy of AI and human intellect: “Manual company reviews have been one of the most resource-intensive parts of compliance. Our model is built on the premise that AI and human expertise are not interchangeable. They’re complementary.”
iDenfy, a global RegTech specializing in identity verification and fraud prevention solutions, shares its newest insights into the synthetic identity fraud crisis, introducing vital adjustments to its Know Your Customer (KYC) and Anti-Money Laundering (AML) platform. Company officials claim that fraud rates have increased at least 15% in various industries, especially in high-risk sectors like iGaming.
As a result, the best way to actually combat issues like synthetic ID fraud or gen AI fraud is not to entirely rely on software but to mix it with human reviews. For that, iDenfy provides its services as an example, allowing readers to take a peek at the newest software adjustments.
AI system errors
According to Domantas Ciulde, the CEO of iDenfy, the company has been investing in its team, the best asset behind the identity verification product, the most in the first quarter of 2026, stressing that skilled personnel are the key to not missing details when it comes to product development. A huge part of valuable insights and suggestions comes from the in-house KYC expert team, who are responsible for manually reviewing captured ID document data.
False positives can affect genuine users trying to access services quickly. A manual approach helps correct AI system errors and onboard legitimate users almost instantly. For example, iDenfy’s KYC specialists work 24/7, removing the risk of downtime or long queues. While this manual approach to KYC in a world of AI seems like a nice-to-have factor for some ID verification service providers, Domantas Ciulde disagrees:
Customer onboarding process
“A highly skilled in-house team is extremely valuable. We started with a few members manually re-checking documents and built a full team from scratch. This means no third parties, just training on real forged document cases that we constantly detect when servicing our clients.”
Regarding synthetic identity fraud in particular, it becomes a more complex task to detect bypassing attempts during the customer onboarding process. Sophisticated fraudsters outsmart basic IDV systems by combining real data, such as valid Social Security numbers (SSNs) or real addresses, with fake names, borrowed birth dates, or AI-generated document images. Deepfake videos are also becoming more advanced, with fraudsters using them as a virtual mask in the second KYC layer, biometric verification, where selfie data needs to be cross-matched with the photo on the submitted ID document.
Modern digital onboarding demands
In this sense, the verification industry’s default response with more automation has not closed the gap. Reported identity and fraud losses in the US from the prior year in automated detection grew.
The structural problem is that traditional, rule-based, and AI-only systems defend against known attack patterns. On the other side, generative AI produces unknown ones, purpose-built to defeat the specific model being targeted. At the same time, only manually performed review processes are economically unscalable at the volume that modern digital onboarding demands.
AI-generated biometric media
In general, when a new user submits their identity documents, iDenfy’s solution immediately cross-references against a database of more than 3000+ government-issued document types from over 200+ countries and territories. Initial recognition and 3D liveness detection check if the biometrics of the face match in under 3 minutes. Critically, iDenfy’s KYC system filters deepfakes at the beginning point of user registration and catches AI-generated biometric media before it moves on to the next step.
This layer handles the speed and scale challenge that no manual process can match. Usually, the first layer is enough for most of the new user onboarding situations, except for the cases when the documents are not clear or look suspicious.
Suspicious contextual anomalies
Unlike platforms that treat human review as a fallback, iDenfy’s in-house compliance team then manually reviews every identity audit, not only the flagged ones.
Reviews are completed by double-checking the similarities between the document and the submitted face, as well as specific countries where the user can be marked as a red flag. iDenfy’s model diverges most sharply from automation-only competitors without a real regulatory background due to the trained and experienced compliance review team that can catch the specific cases, new fraud patterns, and suspicious contextual anomalies that no AI model can bypass.
Meeting compliance requirements
The third layer is AML screening and ongoing monitoring. Identity verification is not only a one-time security guarantee after onboarding the user. iDenfy’s platform offers continuous screening solutions against global sanctions lists, Politically Exposed Persons (PEP) databases, and adverse media sources throughout the user’s active account journey.
This is done to ensure that the person can meet compliance requirements, help to identify suspicious patterns that require further analysis, and save from massive reputational damage. For regulated business clients, iDenfy also launched its AI Company reviewer, which automates Know Your Business (KYB) decisions by cross-referencing company documents and completing other important tasks like Ultimate Beneficial Owner (UBO) verification using government registry data. Suspicious cases are flagged in seconds. Cases with partial matches or flagged signals are immediately routed to the human review team to ensure that no further mistakes are made from the company’s side.
Generative AI fabrication tools
It’s worth mentioning that in 2025, lenders in the US lost more than $35 billion because of fake identities that were linked to new bank accounts. This is a big problem for the whole world. It’s thought that businesses could potentially lose between $20 and $40 billion every year to synthetic identity fraud attacks that are happening when fraudsters use powerful generative AI fabrication tools.
Synthetic identity fraud typically begins with identity fabrication, in which scammers create a hybrid persona based on a stolen SSN that lacks an active credit file and a fake biometric identity in order to pass verification systems and make it more difficult to detect the account.
“Manual company reviews have been one of the most resource-intensive parts of compliance, and fully automated systems create a different problem: they can’t adapt in real-time to fraud patterns they’ve never seen. Our model is built on the premise that AI and human expertise are not interchangeable. They’re complementary. AI handles speed and scale. Our team handles difficult scenarios,” added Domantas Ciulde, the CEO of iDenfy.
