Discussion at Sumsub: Predicted Key Trends in Know Your Customer (KYC) Practices for 2024
2024: A Year of Revolution in Identity Verification and Fraud Prevention
In the ever-evolving digital landscape, 2024 promises significant advancements in identity verification and fraud prevention. The trends for the upcoming year emphasize a shift from traditional methods to more sophisticated and dynamic solutions, aiming to combat the rising threat of synthetic identities and deepfakes.
One of the key developments is document-free verification. Biometrics and liveness detection are becoming critical, reducing reliance on physical document checks. Techniques such as facial biometric comparison with integrated liveness tests allow verification based solely on biometric data, speeding up processes and improving security without the need for users to present physical IDs.
Another significant trend is the adaptive and AI-driven KYC (Know Your Customer) process orchestration. Platforms are leveraging AI-powered simulation, federated learning, and typology-driven detection to dynamically respond to emerging fraud patterns. This helps institutions simulate synthetic fraud, securely share risk signals, and streamline fraud case handling, making KYC more proactive and effective.
The year 2024 also sees the rise of all-in-one identity and fraud prevention solutions. These platforms integrate real-time identity verification, AI fraud detection, biometric checks, video verification, and human fallback mechanisms. They also emphasize identity authorization beyond mere verification, ensuring the person is not only who they claim to be but is also actively consenting to transactions—critical in preventing synthetic identity and impersonation fraud.
Deepfake detection and synthetic identity fraud prevention have become a crucial focus due to their rising threat. AI-enabled detection systems continuously update from real-world scam data, simulate deepfake-driven fraud scenarios, and use next-generation technologies to stay ahead of fraudsters exploiting manipulated biometrics or synthetic personas.
The EU is also taking strides in regulating AI with its AI Act, and harmonizing the Travel Rule across all its members. Crypto regulations are set to change, with more countries expected to implement the Travel Rule and stricter data protection measures. Liveness detection is likely to replace the use of selfies with documents, and regulations are expected to tighten and spread to previously unregulated industries such as online media.
As businesses strive to stay ahead of the curve, more are expected to develop in-house verification technologies. The penetration of digital identity in day-to-day services, especially in areas where users have grown accustomed to anonymity, such as dating apps and YouTube comments, is also expected.
Account takeovers globally increased by 155% in 2023, and AI-generated fraud, specifically deepfakes, will continue to grow in 2024, with a 10x increase in the number of deepfakes detected across all industries. Digital identity verification checks are predicted to surpass 70 billion in 2024, growing 16% over the previous year.
The emergence of all-in-one solutions combining KYC and transaction monitoring is expected in response to increased identity fraud cases. Online media, professional services, healthcare, transportation, and video gaming industries experienced the most substantial surge in identity fraud.
Sumsub's panel of experts for 2024 includes Vyacheslav Zholudev, Chief Technology Officer, Andrew Novoselsky, Chief Product Officer, Pavel Goldman-Kalaydin, Head of ML/AI, and Tony Petrov, Chief Legal Officer.
In conclusion, 2024’s trends point toward a shift from static document checks to dynamic, AI-enhanced biometric verification combined with collaborative intelligence sharing and real-time adaptive defenses, especially against the risks posed by synthetic identities and deepfakes. This convergence aims to streamline onboarding, improve user experience, and maintain robust fraud prevention at scale.
Sports events organizers may incorporate more advanced identity verification methods in 2024, using document-free verification and AI-driven KYC to ensure the authenticity of ticket buyers and attendees, helping to prevent fraud and maintain security.
In the event of inclement weather conditions, event organizers could leverage AI-enhanced decision-making tools to quickly evaluate the impact on the sports event and make timely, informed decisions about cancellations, postponements, or alternative arrangements to ensure the safety of all participants and spectators.
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