LexisNexis Acquires IDVerse to Enhance AI-Powered Fraud Detection Capabilities

LexisNexis Bolsters Fraud Detection With IDVerse Acquisition | PYMNTS.com

LexisNexis Risk Solutions finalized its acquisition of document authentication and fraud detection firm IDVerse. The deal will ultimately allow LexisNexis to offer "more robust risk insights" to help clients protect their customers, according to a Wednesday (Feb. 19) press release. Terms of the deal were not disclosed. "Anti-fraud capabilities need to advance as fast or faster than fraudsters innovate their tactics," Rick Trainor, CEO of business services at LexisNexis Risk Solutions, said in the release. "AI-powered solutions are critical in defending against fraud, particularly AI-generated fraud such as deepfakes. IDVerse's accelerated innovation in this field is impressive, and I'm eager to see how our complementary cutting-edge solutions will combine to take our anti-fraud capabilities to new levels." IDVerse, founded in Australia and launched commercially in 2018, uses artificial intelligence to prevent fraud and deepfakes, per the release. The company's technology verifies the authenticity of identity documents and, with consumer permission, matches the consumer's face to the photo on a document via "biometric algorithms for identity verification and liveness detection to detect a fraudulent submission," the release said. The acquisition came as scammers increasingly use deepfake technology to target their victims. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued an alert in November to help financial institutions spot scams using deepfake media created using generative AI. "Vigilance by financial institutions to the use of deepfakes, and reporting of related suspicious activity, will help safeguard the U.S. financial system and protect innocent Americans from the abuse of these tools," said FinCEN Director Andrea Gacki at the time.

LexisNexis Risk Solutions completes IDVerse acquisition

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. IDVerse is now part of the Business Services segment of LexisNexis Risk Solutions and will continue to be available within its LexisNexis® RiskNarrative® platform, LexisNexis® IDU®, and will be offered within its LexisNexis® Dynamic Decision Platform® as a stand-alone solution later this year. Founded in Australia and launched commercially in 2018, IDVerse uses AI to combat fraud and deepfakes. Its proprietary technology is powered by a deep neural network which verifies the authenticity of identity documents and, with consumer consent, matches the consumer's face to the photo on a document using biometric algorithms for identity verification and liveness detection to detect a fraudulent submission. IDVerse's technology is capable of verifying more than 16,000 types of identity documents globally across organisations in various industries and the public sector. Once integration is complete, LexisNexis Risk Solutions will offer clients even more robust risk insights to better protect consumers, promote financial inclusion for trusted individuals and help organisations globally maintain an optimal risk posture. Combining LexisNexis Risk Solutions' multi-layered identity verification tools with IDVerse's complementary AI-powered technology will address both evolving customer needs and emerging threats. Expanding global ID verification capabilities will bolster defences against AI-generated fraud, while IDVerse's self-learning AI will ensure advanced fraud detection, faster fraud model updates and even more accurate identity verification. Rick Trainor, CEO of Business Services at LexisNexis Risk Solutions, stated, "Anti-fraud capabilities need to advance as fast or faster than fraudsters innovate their tactics. AI-powered solutions are critical in defending against fraud, particularly AI-generated fraud such as deepfakes. IDVerse's accelerated innovation in this field is impressive, and I'm eager to see how our complementary cutting-edge solutions will combine to take our anti-fraud capabilities to new levels." The terms of the transaction have not been disclosed.