Identity and fraud detection provider iDenfy has launched an enhanced phone verification offering, having pinpointed some issues with phone number authentication over the past year.
In particular, the Lithuania-based company has asserted that verifying phone numbers is ‘a bit trickier’ than certifying a customer’s Personally Identifiable Information (PII), complicating client risk evaluation and compliance with Customer Due Diligence (CDD).
The firm’s phone verification operates by analysing customer data, whilst the company further maintains that it will conduct API calls in order to deliver ‘crucial information’ to assess risk associated with phone numbers and recommended actions.
Data will include customer location, roaming country, current network, availability, validity and phone contact details, collected with the goal of mitigating fraud risks, especially following the impacts of the COVID-19 pandemic – which iDenfy believes has presented a unique opportunity for fraudsters.
“Many people value their privacy above all and will resort to certain methods to bypass the process,” said Domantas Ciulde, CEO of iDenfy. “Using a made-up number, a ‘burner phone,’ or making use of temporary phone numbers issued by specific websites are among the most popular.”
By offering the phone verification service, iDIdentify aims to allow its clients to double-check customers using a one-time password or ‘text to speech’ message in order to provide greater fraud protection as part of the onboarding process.
The development represents iDenfy’s second major move to strengthen its identity verification offering this month, having entered into a partnership with fellow Lithuanian firm A.ID four weeks ago.
By entering into the collaboration, the two firms aim to enhance the focus on high risk industries, providing a platform tailored for the higher-risk segments of the financial market to combat what they believe is a growing risk of fraud.
Commenting further on the firm’s payment verification product, Ciulde continued: “Phone verification is not new in the market. Many industries use the system to confirm the numbers of their clients and establish a medium for communication.”
“However, our product stands out in its ability to thoroughly analyse the phone number provided and assess the risk associated with it. It’s a flexible tool, as companies can decide for themselves what to do with the information they’ll receive.
“As face-to-face interactions are much rarer today than in the pre-COVID-19 times, businesses should utilise every tool available to ensure security and transparency.”