Fake identity recognition is significant for the UK financial and non-financial sectors, as financial criminals, fraudsters and money launderers are rapidly using synthetic identities to commit financial crimes in the market. UK Finance today also released its latest annual fraud report, which says that over £1 billion was stolen through payment fraud in 2024. Cifas Fraudscape 2025 report says that identity fraud continues to dominate, and almost 250,000 identity fraud filings will occur in 2024, representing 59% of all cases to the National Fraud Database. These instances of identity fraud are enough to demonstrate why identity verification matters for UK banks, fintech companies, insurance companies, cryptocurrency, forex platforms, neobanks, payment processors, BNPL providers, financial institutions, and other financial businesses.
Fake Identity Fraud And Why It’s Getting Harder to Spot?
Financial criminals blend real and fabricated data to create a new identity that can pass through a vulnerable identity check system. These synthetic identities assist fraudsters in building credit and bust out later. Money launderers and scammers use these fake identities for financial scams and fraud. According to UK finance news, synthetic identity fraud costs UK FIs £300+ million annually. Synthetic identities contain real and fabricated information; therefore, it would be difficult to identify during the identity checks without advanced technology-based identity verification solutions. Identity fraud is the most significant threat to financial businesses in the UK.
Drivers Behind the Rise of Fake identity:
AI-driven Deception:
In the digital age, fraudsters use artificial intelligence to create high-quality fake images, voice clones, and deepfakes, making remote verification riskier.
Data Breaches:
Massive data breaches feed credential-stuffing and identity recycling.
How Does KYC UK Prevent Fake Identity?
KYC UK is a renowned name in the UK market for robust KYC solutions for financial businesses. It provides an artificial intelligence and machine learning algorithm-powered KYC API to authenticate ID documents quickly and securely. KYC UK provides a comprehensive identity verification solution that ensures legitimate customer identity and reduces the risk of identity fraud.
Ensure Genuine Presence:
Their ID verification API uses a high-integrity liveness detection feature to ensure whether a person is live or not, along with selfie matching. This reduces the risk of identity fraud and matches the face with the ID documents’ pictures.
Document Forensics:
The KYC API cross-validates MRZ code, font sets, and holograms to ensure the authenticity of official documents like passports and ID cards. This mitigates the risk of fraudulent ID documents during the onboarding process for financial companies.
Verify Real-world Existence:
Authenticate telco and utility data and validate UK addresses against authoritative datasets.
Behavioural Monitoring:
Mouse touch patterns can flag bots and account takeovers without adding friction. AI and machine learning algorithm-based behaviour monitoring identifies suspicious activities and gives a flag as an alert for account takeovers.
Real-Time Identity Verification:
KYC UK provides video KYC solutions to verify identity on a video call. Agents authenticate ID documents during the video call and match the live face with the ID document’s picture. This reduces the risk of fake identity and assists in secure real-time identity verification.
Business Authentication:
KYC UK offers business verification solutions that ensure the client’s business is genuine or not. It checks the company name, business address, date of incorporation, business registration numbers, and UBOs. It assists in business KYC and ensures the company deals with the right business partners.
What Makes KYC UK Apart From Others?
Customised Solutions:
KYC UK provides customised identity verification solutions for financial businesses in the UK. As per the client’s business needs, KYC UK provides solutions such as ID verification solutions for single passport, driving license, or government-issued ID card verification. KYC solutions for multiple ID verification of the client, AML solutions for background verification of the client whether they are associated with money laundering or not, business verification for legal business assurance, and age verification solutions to safeguard minors.
Advanced Technology:
OCR technology helps with quick ID verification and a fast onboarding process. AI and machine learning-powered identity verification solutions assist in authenticating identities precisely and accurately. They prevent the risk of fake or synthetic identities commonly used by fraudsters and financial criminals in the digital business world. KYC UK has advanced technology-based KYC solutions that assist financial and non-financial businesses with quick customer identity authentication and provide a smooth user experience.
API Integration:
Their API easily integrates with any existing system and can scale the business growth without technical compromise.
Well-versed with UK Regulations:
Their KYC API and AML API are well-versed in UK KYC and AML compliance, verifying the customer’s identity per the regulatory standards. Allow small, medium, and large-sized enterprises to operate smoothly and prevent regulatory penalties and legal procedures for non-compliance.
Multilingual Support:
For companies and organisations in the UK that operate internationally, KYC UK provides KYC services that support multiple languages. It assists in identifying identities according to the country language and delivers an accurate result within seconds.
Customer Support:
They provide 24*7 customer support for their clients if they face technical difficulties.
Secure Financial Sector with Advanced KYC Solutions:
Identity fraud for UK businesses can be challenging, but implementing advanced KYC solutions can safeguard financial transactions. Whether you are operating a financial or non-financial company, KYC plays a significant role in client identity verification. It ensures genuine business identities and compliance with UK regulatory standards. It builds trust for new investors, vendors, and clients in the competitive market and provides a fraud-free business. KYC solutions for UK businesses act as a robust security system that does not allow illegitimate identities to access the sensitive information and ensures that only genuine business identities can access it.
Therefore, choose a trusted and reliable KYC partner for your business and secure business transactions. Investing in advanced technology will keep your financial companies ahead of the curve, ensure long-term business growth, and combat money laundering and advanced threats from financial criminals.