• News
    • Industry News
    • Company News
    • Funding Rounds
    • Partnerships
    • M&A
    • People News
  • Sector Updates
    • Blockchain & Cryptocurrencies
    • CyberTech
    • Data & Analytics
    • ESG FinTech
    • Funding Platforms
    • Infrastructure & Enterprise Software
    • InsurTech
    • Marketplace Lending
    • PayTech
    • PropTech
    • RegTech
    • WealthTech
  • Industry Research
    • Whitepaper: Addressing Advisor Movement in Wealth Management
  • Features
  • Events
    • AI FinTech Forum
    • AML & FinCrime Tech Forum
    • AML & FinCrime Tech Forum – USA
    • Data Management Tech Forum
    • ESG FinTech Summit
    • CX in Financial Services Forum
    • Global InsurTech Summit – Europe
    • Global InsurTech Summit – USA
    • Global RegTech Summit – Europe
    • Global RegTech Summit – APAC
    • Global RegTech Summit – USA
    • Global WealthTech Summit – Europe
    • Global WealthTech Summit – USA
  • FinTech Rankings
    • AIFinTech100
    • CyberTech100
    • ESGFinTech100
    • InsurTech100
    • RegTech100
    • WealthTech100
  • Market Maps
    • ESG FinTech
    • WealthTech
    • FinCrime Tech
  • Newsletters
  • Courses
    • Professional RegTech Certificate
  • Marketing
  • About Us
Search
  • LOG IN
Welcome! Log into your account
Forgot your password?
Recover your password
FinTech-Global FinTech-Global FinTech Global
  • News
    • Industry News
    • Company News
    • Funding Rounds
    • Partnerships
    • M&A
    • People News
  • Sector Updates
    • Blockchain & Cryptocurrencies
    • CyberTech
    • Data & Analytics
    • ESG FinTech
    • Funding Platforms
    • Infrastructure & Enterprise Software
    • InsurTech
    • Marketplace Lending
    • PayTech
    • PropTech
    • RegTech
    • WealthTech
  • Industry Research
    • Whitepaper: Addressing Advisor Movement in Wealth Management
  • Features
  • Events
    • AI FinTech Forum
    • AML & FinCrime Tech Forum
    • AML & FinCrime Tech Forum – USA
    • Data Management Tech Forum
    • ESG FinTech Summit
    • CX in Financial Services Forum
    • Global InsurTech Summit – Europe
    • Global InsurTech Summit – USA
    • Global RegTech Summit – Europe
    • Global RegTech Summit – APAC
    • Global RegTech Summit – USA
    • Global WealthTech Summit – Europe
    • Global WealthTech Summit – USA
  • FinTech Rankings
    • AIFinTech100
    • CyberTech100
    • ESGFinTech100
    • InsurTech100
    • RegTech100
    • WealthTech100
  • Market Maps
    • ESG FinTech
    • WealthTech
    • FinCrime Tech
  • Newsletters
  • Courses
    • Professional RegTech Certificate
  • Marketing
  • About Us
  • RegTech
  • Anti-Fraud
  • FinTech News
  • Company News
  • Industry News
  • Sector Updates

Why digital identity is the future of fraud prevention

June 18, 2026

Traditional document-based identity verification is rapidly losing the battle against AI-powered fraud. Solutions built on document capture and liveness checks, the backbone of most onboarding and authentication systems deployed over the past decade, were never engineered for the digital environment. 

According to Hopae, advanced physical security features such as ultraviolet and infrared controls simply cannot be replicated online, leaving businesses exposed to a new generation of attacks including synthetic identities and increasingly convincing deepfakes. 

Liveness detection was introduced as a patch, but AI has advanced to the point where even sophisticated deepfakes can bypass these checks with ease through presentation and injection attacks. The result is a surge in fraud across virtually every sector.

The question now is not whether document-based verification is sufficient, it clearly is not, but what should replace it. The answer lies in digital-native identity solutions: systems built from the ground up to operate securely in an online environment, with security features specifically designed to address the risks that the digital world presents.

However, not all digital-native identities offer the same level of protection. The eIDAS 1.0 and 2.0 regulations provide a useful framework here, distinguishing between levels of assurance (LOA) that determine how well a solution can resist modern attacks. Only solutions rated at Substantial or High LOA provide meaningful resilience. For the most severe threat scenarios, only the High LOA can be relied upon.

The distinction comes down to two critical factors: enrolment quality and the strength of the authentication method. During enrolment, the process by which a digital identity is first created, solutions that have not been assessed and certified by a recognised Certification Assessment Body tend to be fundamentally weak. A simple document capture combined with liveness detection is, by current standards, easily compromised. 

A Substantial LOA requires video capture of a document, a certified liveness session, and human review. High LOA may require a one-time visit to an official body such as a city hall, where biometric data held on a national ID card, such as a fingerprint, is used to activate the service.

Authentication is the second pillar. Consumer-facing biometric systems, such as Apple Face ID and Google’s equivalent, are not designed to meet the security bar that financial services and regulated industries require. Robust digital-native solutions instead embed strong customer authentication mechanisms that have undergone rigorous independent security evaluations. In France, for example, the CSPN certification is the recognised benchmark for this kind of assurance.

For businesses dealing with account takeover risks in password reset flows, or handling customer onboarding under increasingly stringent regulation, the direction of travel is clear. A Substantial LOA should be treated as the floor, with High LOA the preferred standard wherever possible. 

This is not merely best practice; it is increasingly a regulatory expectation. The updated Anti-Money Laundering Regulation (AML-R), in its July 2027 version, explicitly aligns with this position, signalling that the industry’s transition away from legacy document verification is no longer optional.

Read the daily FinTech news

Copyright © 2026 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research

Investors

The following investor(s) were tagged in this article.

  • TAGS
  • Account takeover
  • AML Regulation
  • biometric authentication
  • deepfakes
  • Digital Identity
  • eIDAS 2.0
  • Fintech
  • Fraud prevention
  • identity verification
  • insurtech
  • level of assurance
  • Liveness detection
  • RegTech
  • Strong Customer Authentication
  • Synthetic identity fraud
Previous articleThe compliance research crisis no one is fixing
Next articleCopper secures $5m media-for-equity deal with MMC
dwillis

RELATED ARTICLESMORE FROM AUTHOR

FinCEN clarifies use of mobile driver’s licences in bank onboarding
Banking Infrastructure

FinCEN clarifies use of mobile driver’s licences in bank onboarding

Hopae joins FIDO Alliance to advance digital identity
FinTech News

Hopae joins FIDO Alliance to advance digital identity

Why digital ID needs more than technical compliance
FinTech News

Why digital ID needs more than technical compliance

WorkFusion's Isaac rethinks the AML investigator's role
AML

WorkFusion’s Isaac rethinks the AML investigator’s role

Jumio expands reusable KYC identity solution across EMEA
AML

Jumio expands reusable KYC identity solution across EMEA

SEON
Company News

SEON widens signal net as AI fraud accelerates

Latest Analysis

global WealthTech funding Q3 2026
FinTech News

Global WealthTech funding surged 3x YoY in Q3 driven by growth...

October 15, 2026
Europe FinTech funding Q3 2026
FinTech News

European FinTech investments grew in Q3 driven by doubling of deals...

October 12, 2026
top global FinTech deals Q3 2026
FinTech News

Seven countries represented among the top 10 FinTech deals in Q3...

October 9, 2026
US WealthTech funding Q3 2026
FinTech News

US WealthTech funding hit five-quarter high as investors loosened purse strings...

October 8, 2026
global FinTech deal activity H1 2026
FinTech News

US strengthened its FinTech dominance further, securing half of all deals...

October 5, 2026

News Stories

How ReSource Pro is building insurance data services for AI

How ReSource Pro is building insurance data services for AI

October 19, 2026
As insurers modernise their technology, acquire businesses, and expand AI initiatives, the quality and accessibility of their data is becoming increasingly important. ReSource Pro...
Acorns buys Frich to attract the next generation of investors

Acorns buys Frich to attract the next generation of investors

October 19, 2026
Acorns, a US financial wellness and investing platform, has acquired Frich, a peer-led financial education community with 1.6 million members, as it looks to...
Corgi hires ex-Chubb executive to lead AI underwriting

Corgi hires ex-Chubb executive to lead AI underwriting

October 19, 2026
Corgi Insurance, an AI-native insurance carrier serving high-growth businesses, has appointed former Chubb assistant vice president James Kullman as head of underwriting for North...
Jack Henry connects to Google Cloud’s digital ledger

Jack Henry connects to Google Cloud’s digital ledger

October 19, 2026
Jack Henry, a financial technology provider serving more than 7,200 banks and credit unions, is expanding its partnership with Google Cloud to bring tokenised...
Skyfire and Forter target fraud in AI agent checkout

Skyfire and Forter target fraud in AI agent checkout

October 19, 2026
Skyfire, an identity and payments infrastructure provider for AI agents, has expanded its partnership with Forter, a trust intelligence platform for digital commerce, to...
  • Terms & Conditions
  • Privacy Policy
  • FinTech Global’s Editorial mission
  • Contact Us
© Copyright 2026 FinTech Global. All Right Reserved

Technology partner
Advanced Vision IT

120,000+ FinTech leaders get exclusive industry stories delivered every week

MORE STORIES

FBI warns of potential cyberthreats to 2020 Olympic Games

July 21, 2021
Why biometrics are the future of fraud prevention

Why biometrics are the future of fraud prevention

September 30, 2025