Checkout.com says it is using artificial intelligence to onboard customers in under two minutes.
The payments solutions provider on Tuesday (July 11) announced the launch of Identity Verification, an artificial intelligence (AI)-powered video verification tool.
“Identity fraud is evolving, with deep fakes and deceptive documents growing in sophistication,” the company said in a news release. “Single-frame photos often fail due to poor image quality or are managed by a system that cannot keep up with new types of fraud.”
Checkout.com says it can solve this problem with “25 fps, 1000 images/flow video streaming.”
Customers use the video mode on their phones and show an ID document and their face, while the AI guides them through the process.
It tells them how to demonstrate “document authenticity” and move their faces so the AI can recognize them. In addition, the AI will also let users know if the document they are scanning is invalid (for example, it’s the wrong driver’s license or passport).
“The digital economy enables instantaneous access to products, services and outcomes, and it should be no different for identity verification,” Checkout.com Chief Product Officer Meron Colbeci said in the release.
“We deeply believe in the intersection between digital payments and online identity verification. Legacy systems requiring an appointment with a human being or limited to certain days a week are not conducive to the long-term growth of the digital economy.”
A number of payments industry experts have spoken to PYMNTS in recent months about the benefits of using AI to combat fraud.
Jeremiah Lotz, managing vice president, digital and data at PSCU, said that while using the technology to prevent fraud isn’t new, the latest AI solutions can “take things to the next level by looking at deeper, more personalized experiences.”
That means supporting identity verification and transaction authorizations, while also spotting suspicious activity by better analyzing behavioral patterns.
While Checkout.com is using AI to prevent fraud, a number of observers have worried about the technology’s ability to help fraudsters carry out scams.
A group of U.S. senators last week wrote to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra expressing their concerns about voice cloning and other AI and machine learning (ML) technologies that can be used to commit financial fraud.
“Voice cloning adds a new, threatening dimension to these scams, allowing fraudsters to generate voice clips to convincingly impersonate friends, family or potentially even financial advisors and bank employees,” the lawmakers said in the letter. “Hearing trusted voices amplifies the risks of consumers falling victim to scams.”
The senators called on the CFPB to study the risks posed by AI and ML and take action on the governance of the technology as it may impact consumer financial products.
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