Kaunas, Lithuania (September 29, 2023) — iDenfy, a global RegTech startup offering AI-based ID verification and fraud prevention tools, partnered with Quoka, Germany’s leading online marketplace, which offers a platform for individuals and businesses alike to sell and buy quickly and safely. iDenfy will be responsible for handling Quoka’s verification request while helping the marketplace scale and ensure compliance.
iDenfy claims that while certain business owners may contend that tackling marketplace fraud can be costly due to the necessity of investing in fraud prevention measures and hiring compliance specialists, the fact remains that the expenses incurred by not taking action can far surpass those initial costs. The latest report from Gitnux shows that the projected global e-commerce fraud losses are expected to reach $48 billion by the end of 2023, marking a 16% year-over-year increase. Additionally, marketplaces that neglect fraud prevention can find themselves grappling with the consequences of data breaches or confronting substantial fines for non-compliance, resulting in even more significant long-term financial burdens.
Quoka understands the importance of having a solid security system for its marketplace. As a way to enhance its internal processes with automation, Quoka started to look for an AI-powered identity verification solution. According to the company, it plays a pivotal role in combating fraud in its online marketplace by enhancing trust in digital transactions and data security. Consequently, Quoka needed a solution to handle large ID verification volumes and enable swift and accurate verification of user identities through various data points, including biometrics and document recognition. Germany’s leading marketplace currently operates 5.7 million classified ads on its platform, first launched in 1983.
iDenfy explains that significant online marketplaces like Quoka unintentionally create an environment where fraudsters can more easily camouflage their activities and prevent detection. This is because the sheer volume of transactions provides a cover for them to conduct illicit activity without getting detected. In this case, manual monitoring and identity verification processes, according to iDenfy, become a hassle for the company’s internal teams and operations. For this reason, the RegTech startup has customized its Know Your Customer (KYC) compliance tool to fit e-commerce business workflows by combining automation and accuracy. Quoka agrees with this approach and, for this reason, selected iDenfy as its new identity verification software provider.
iDenfy’s ID verification solution will help defend Quoka’s growing marketplace community by only accepting legitimate buyers and sellers. iDenfy’s software detects malicious intents to pass the verification process in real time, denying access to criminals who use deepfakes, masks, or any other attempts to manipulate the KYC process. The newly integrated solution supports over 3000 document types and compares the users’ facial biometrics to their documents to ensure the highest level of security. As an extra layer of protection, iDenfy’s KYC specialist team manually reviews each verification result while helping seamlessly scale Quoka’s verification volumes.
iDenfy played a crucial role in assisting Quoka in constructing a completely automated customer onboarding process. Their responsive customer support team facilitated this achievement, a streamlined testing process, and seamless implementation. With the improved ID verification process, higher-risk users will be subject to heightened scrutiny, which means they will need to go through the four-step verification process on the Quoka platform. iDenfy’s automated solution will also help the marketplace avoid duplicate KYC accounts, preventing users from attempting to register multiple times.
“Reputation is everything for online marketplaces. The key to maintaining it is security, and the first line of defense against fraud is identity verification. That’s why our team is excited to partner with Quoka, supporting them in safeguarding their assets through a straightforward yet highly effective approach.” — said 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 Summer 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.