FRAUD AND ID VERIFICATION
I M P L E M E N T A T B E S T P R A C T I C
Risk assessment forms the foundation of effective verification strategy.
Financial services require more stringent controls than e-commerce platforms, while businesses handling sensitive data face additional compliance requirements under regulations including KYC, AML and GDPR.
Cost-benefit analysis must consider both direct fraud losses and indirect impacts including customer acquisition costs, operational overhead and reputational damage.
The most expensive verification solution proves worthless if customers abandon transactions due to excessive friction.
“ Marketplace operators need to make a concerted effort to stay ahead of fraudsters’ evolving strategies,” warns Maciej Pitucha, VP of Data Intelligence at Mangopay.
“ As third-party intermediaries, platforms require more robust fraud protection than traditional e-commerce as their two-sided ecosystems increase the fraud surface area.”
Reducing friction while maintaining security requires careful orchestration of verification workflows.
Progressive verification strategies introduce additional checks gradually, allowing legitimate users to complete basic actions while subjecting suspicious behaviour to enhanced scrutiny.
Mobile optimisation has become essential as smartphone-based verification increasingly dominates customer preferences.
According to 2025 data from Veriff, 83 % of businesses have integrated identity verification software and biometrics into their risk-based authentication systems, with 81 % planning to increase reliance on such solutions.
Future outlook The fraud prevention landscape continues changing as artificial intelligence transforms both attack methods and defensive capabilities.
Veriff’ s 2025 research shows 90 % of US respondents anticipate further increases in online fraud through 2025, yet 64 % of businesses already utilise AI or machine
158 November 2025