iDenfy, the digital ID verification, compliance, and fraud prevention startup, teamed up with Coinmerce, the crypto investment platform that offers its users an easy way to buy, sell and swap various cryptocurrencies.
Now, iDenfy will help welcome newly registered Coinmerce users by authenticating their identities using biometric verification.
While crypto fraud rises, businesses seek new ways to combat financial crime. According to the Federal Trade Commission, more than 7 thousand people reported losses due to crypto-related scams, resulting in $80 million in damages last year.
Specialists argue that criminals target the crypto industry due to the lack of regulations. Like banks and other, more traditional financial industries, fraudsters use crypto because the industry is one of the quickest ways to anonymously steal digital assets.
iDenfy argues combatting this issue is vital, and to do so, organizations must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
According to the ID verification provider, authenticating customers helps crypto players prevent fraud, such as stolen identities and the use of forged identity documents, while, at the same time, enhancing the overall stability of the crypto sector.
On top of that, the growing numbers of crypto users, along with their high-value transactions, motivate more crypto industry players to secure their platforms with ID verification. Hence, Coinmerce isn’t an exception.
Coinmerce is a cryptocurrency trading platform focusing entirely on usability and simplicity to offer its users a safe and straightforward experience. As claimed by Coinmerce, encountering errors during the KYC process isn’t acceptable, especially in today’s digital age, when customers expect a seamless onboarding journey. The crypto platform didn’t want to miss new user opportunities and lose revenue.
To overcome compliance requirement challenges and improve its ID verification service, Coinmerce decided to partner with iDenfy. The newly selected provider was able to fix onboarding issues and lower the abandonment rate, resulting in a more user-friendly and an overall better experience for the crypto platform. Coinmerce uses iDenfy’s IDV services on Android and iOS apps.
iDenfy’s identity verification is best known for its accessible, four-step process: the user selects their identity document type and country, captures a photo, then takes a selfie.
The AI-powered software uses 3D liveness detection, allowing iDenfy to guarantee that the person completing the verification is real, preventing the misuse of deepfake videos, masks, and other fraudulent ways to pass the check. The KYC provider is also certified by ISO/IEC 27001 standard, which adds another layer of assurance for Coinmerce.
“Our team is happy to join forces with iDenfy. Aside from standard rules, our identity verification process must comply with the regulations to prevent money laundering and terrorist financing. We focus on security to provide our users with the necessary sources to safely buy and store crypto.” — stated Luc Smits van Oyen, the co-founder of Coinmerce.
“It’s no secret that fraudsters try to use fake identities to open crypto accounts. Following strict KYC guidelines helps businesses identify bad actors and prevent financial crime. Partnering with a responsible business is always a pleasure. Our team is happy to help Coinmerce build a user-friendly security system powered by end-to-end automation.” — expressed Domantas Ciulde, the CEO of iDenfy.
iDenfy is a RegTech startup that provides AML, KYC, and KYB compliance solutions to businesses of all sizes. The company has been recognized as a leading identity verification software in G2's Winter 2023 report. iDenfy has also won the “Enabler of the Year” category at the Lithuanian Fintech 2023 awards.
For more information and business inquiries, please visit www.idenfy.com.