iDenfy, a Lithuania-based company specializing in identity verification, compliance, and fraud prevention, has enhanced its Know Your Customer (KYC) software by introducing SMS and Email verification features.
This enhancement aims to increase accuracy and ease during the user onboarding process, addressing security issues such as multiple accounts, invalid phone numbers, and forged IDs that frequently arise in identity verification.
Enhanced Verification Process
The newly introduced features upgrade the traditional ID verification process by incorporating an additional method to validate email addresses and phone numbers, effectively identifying suspicious users before they gain access to high-risk services like payment applications.
Users must now provide their contact information to receive a verification code, which they must input to proceed to the standard government ID verification phase.
Importance of Simplicity and Security
When a user provides an email address or phone number, a one-time verification code is sent
iDenfy’s Chief Marketing Officer, Viktor Vostrikov, explains the necessity for uncomplicated authentication methods that bolster security without compromising mandatory ID verification: “We noticed our partners asking for simple, familiar authentication methods that would increase security without damaging the general ID verification process with an ID document, since it’s mandatory for a compliant KYC flow.”
When a user provides an email address or phone number, a one-time verification code is sent, which must be entered to verify their ownership of the contact details provided.
Strengthened Onboarding Process
This service enhances onboarding by verifying the authenticity of contact information in real-time, offering a critical layer of security that prevents fraud and ensures a seamless and secure customer experience.
The verification codes act as a protective measure against serious threats like fraudulent registrations or account takeovers.
Detecting Fraudulent Activity
iDenfy’s tools aid businesses in detecting potential fraud by flagging suspicious data on its dashboard
iDenfy’s tools aid businesses in detecting potential fraud by flagging suspicious data on its dashboard, such as invalid contact details or repeated uses indicating malfeasance.
For example, multiple account creations exploiting a system or unauthorized access efforts are quickly identified before the standard document or biometric verification is initiated.
Ensuring Platform Integrity
CEO Domantas Ciulde highlights the importance of accurate data, stating, “Trust begins with accurate data; therefore, our solution acts as an early checkpoint, filtering out fraudulent users before they even begin the onboarding process."
"By verifying emails and phone numbers upfront, we help businesses eliminate fake profiles, minimize risk, and maintain secure integrity of their platforms from the very first interaction.”
Comprehensive KYC Solutions
iDenfy seamlessly integrates the new proof tools into existing onboarding flows, supporting ongoing needs
iDenfy seamlessly integrates the new verification tools into existing onboarding flows, supporting ongoing compliance needs.
These tools complement iDenfy's comprehensive KYC solutions, including face biometrics, document authentication, and risk scoring, facilitating a flexible, risk-based identity management strategy.
Combating Identity Fraud
The rise in identity fraud, evidenced by new Federal Trade Commission data showing over $12.5 billion lost to fraud in 2024—highlighting a 25% increase from the previous year—shows the pressing need for reliable data validation.
Issues like phishing schemes and fake contact details underscore the necessity for enhanced verification measures in preventing identity-related fraud.
iDenfy, an identity verification, compliance and fraud prevention company from Lithuania, introduced new SMS and Email verification features to its industry-pioneering Know Your Customer (KYC) software.
iDenfy is now able to improve both accuracy and simplicity during the initial user onboarding phase to help solve issues like multiple accounts, invalid phone numbers, forged IDs and other relevant security challenges that are commonly encountered during identity verification.
Standard ID verification process
The new functionality enhances the standard ID verification process, providing an extra, built-in method to verify email addresses and phone numbers, as well as spot suspicious users before granting them access to high-risk services, such as payment apps.
Currently, users will have to submit their contact details, such as their phone number, in order to receive a verification code that enables them to pass the first authentication layer and only then complete the standard government-issued ID verification step.
General ID verification process
According to iDenfy’s CMO, Viktor Vostrikov, this new built-in authentication measure is in high demand, especially in sectors where financial transactions and personal data are involved: “We noticed our partners asking for simple, familiar authentication methods that would increase security without damaging the general ID verification process with an ID document, since it’s mandatory for a compliant KYC flow.”
The procedure is straightforward; when a user inputs their email address or phone number, iDenfy’s system promptly dispatches a one-time verification code via SMS or directly to their email. The user is asked to enter that code to verify their access to the contact details they submitted.
This new service enhances the onboarding process by verifying the authenticity of phone numbers and email addresses in real-time and provides an essential layer of security. It aids in stopping fraud before it worsens and leveraging clients' data while ensuring a seamless and secure customer experience.
iDenfy’s new KYC tools
In addition, iDenfy’s SMS and Email verification features add protection against more serious threats, such as attempted account takeovers or fraudulent registrations; verification codes act as a barrier that prevents fraudsters from gaining access using stolen or fake data. Most importantly, iDenfy’s new KYC tools aren’t meant to replace identity checks, but rather to enhance them.
By verifying emails and phone numbers, businesses can detect early warning signs on iDenfy’s dashboard, such as invalid contact data or suspicious repetition that could indicate a bad actor.
For example, someone trying to create multiple accounts to exploit the iGaming referral system or a fraudster hiding behind someone's number, trying to log in to the crypto exchange platform, will be flagged quickly, before the standard verification steps, such as document or biometric verification, are triggered, leaving no chance to damage real clients' assets. This quick process helps companies to confirm that phone numbers and emails are both valid and owned by the person submitting them.
Secure the integrity of platforms
“Trust begins with accurate data; therefore, our solution acts as an early checkpoint, filtering out fraudulent users before they even begin the onboarding process."
"By verifying emails and phone numbers upfront, we help businesses eliminate fake profiles, minimize risk, and maintain secure integrity of their platforms from the very first interaction,” noted Domantas Ciulde, the CEO of iDenfy.
iDenfy’s full KYC solution tools
As part of iDenfy’s ongoing commitment to advancing identity verification and meeting constantly evolving compliance requirements, the new verification tool integrated seamlessly into existing onboarding flows.
Clients can already deploy it as a primary feature for early risk checks and combine it with iDenfy’s full KYC solution tools, including face biometrics, liveness detection, document authentication, risk scoring, and more to build a flexible, risk-based approach to identity management.
Phishing schemes
It’s worth mentioning that identity fraud is evolving every day. Newly released Federal Trade Commission data show that consumers reported losing more than $12.5 billion to fraud in 2024, which represents a 25% increase over the prior year.
Many of which began with fake or unverifiable contact information. From phishing schemes to multi-accounting fraud, the cost of overlooking basic data validation is becoming increasingly severe.
