iDenfy, a Lithuanian company specialising in identity verification, compliance, and fraud prevention, has unveiled new SMS and email verification features within its Know Your Customer (KYC) software.
These enhancements aim to streamline the initial user onboarding process by tackling common identity verification challenges such as multiple account creation, invalid phone numbers, and forged identities.
Enhancing ID verification processes
New features bolster the standard ID verification process by including an extra layer of authentication
The new features bolster the standard ID verification process by incorporating an added layer of authentication.
This involves verifying email addresses and phone numbers, which aids in identifying suspicious users prior to granting them access to secure services, such as payment applications.
Users are required to provide contact details to receive a verification code, which is a prerequisite for the standard ID verification using government-issued documents.
Demand for simplified verification
iDenfy's Chief Marketing Officer, Viktor Vostrikov, highlighted the demand for straightforward authentication methods in sectors dealing with financial transactions and personal data.
Vostrikov stated, “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.”
Simplified user onboarding
The SMS and email verification system sends a one-time code to the user, who then verifies their contact information by entering this code.
This procedure not only affirms the legitimacy of phone numbers and email addresses but also enhances security measures, preventing fraudulent activities before they escalate.
Strengthening security
iDenfy emphasises that these tools are designed to complement, not replace, existing identity checks
iDenfy emphasises that these tools are designed to complement, not replace, existing identity checks. By verifying emails and phone numbers, businesses can detect warning signs such as invalid or suspicious contact information, which may signal fraudulent activity.
This early alert system helps prevent potential security breaches, ensuring that fraudulent actors are detected before any further verification steps are initiated.
Maintaining platform integrity
According to Domantas Ciulde, CEO of iDenfy, “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, minimise risk, and maintain secure integrity of their platforms from the very first interaction.”
Integrating with existing systems
iDenfy's new verification tools can be seamlessly integrated into existing onboarding procedures
iDenfy's new verification tools can be seamlessly integrated into existing onboarding procedures.
Clients can utilise these features as primary risk assessment tools or combine them with the full suite of iDenfy's KYC solutions, including face biometrics, document authentication, and risk scoring, to form a robust identity management strategy.
Addressing evolving fraud tactics
In response to escalating fraud instances, with reports from the Federal Trade Commission showing consumer losses exceeding $12.5 billion in 2024, iDenfy’s tools help combat schemes that often originate from fake contact information.
The costs associated with neglecting data validation are mounting, making these verification measures essential in thwarting phishing and multi-accounting fraud tactics.
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, minimise 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.
