financial services company, Sumsub, selects Volt's Open Banking functionalities to enhance their verification service offerings.
In a move to address the escalating issue of fraud in Europe, Volt and Sumsub have formed a strategic partnership. This collaboration aims to enhance identity verification and transaction security, providing a more effective solution to the growing problem of cyber-enabled financial fraud.
Volt's senior partnerships manager, Matthew Rickard, stated that working with Sumsub demonstrates Volt's commitment to partnering with innovative brands. He added that Sumsub's vision of unifying the consumer verification experience across multiple markets aligns closely with Volt's global orchestration of account-to-account networks.
Andrew Novoselsky, Chief Product Officer at Sumsub, highlighted the increasing sophistication of fraud tactics, stating that AI-powered fraud is escalating rapidly, with deepfake-driven fraud increasing 4x worldwide from 2023 to 2024. Europe saw the second-highest increase in fraud globally, with cases surging 150% year-over-year.
To combat this rise, AI-powered solutions like Sumsub’s Penny Drop Verification and Volt’s Open Banking capabilities play key roles. Sumsub’s Penny Drop Verification uses AI to confirm bank account ownership by sending a small test transaction ("penny drop") and verifying it, reducing fake account fraud and identity theft in real-time customer onboarding.
Volt's Open Banking, on the other hand, leverages AI and APIs to provide secure, instant bank account verification and transaction data sharing. This enables businesses to authenticate users and detect anomalies quickly, significantly lowering the risk of payment fraud or identity misuse in digital transactions.
The partnership between Volt and Sumsub is particularly critical in markets such as Germany, where the end user's qualified electronic signature (QES) is often used for verification. A QES is recognized as a compliant identification method by European Union Anti-Money Laundering (AML) regulators.
In the 'Penny Drop Verification' flow, an end user is directed to their banking app for a 1c payment via Volt's hosted checkout. Sumsub will use Volt's payment initiation services and AIS Open Banking capabilities across Europe.
This partnership is part of a broader EU strategy to boost digital capabilities in fraud prevention. The European Commission and national authorities are focusing on stronger anti-fraud strategies and greater use of innovative technologies like AI to combat this rise, but only some member states have fully implemented comprehensive national strategies.
In essence, the partnership between Volt and Sumsub represents a significant step forward in the fight against fraud in Europe. By improving identity verification and transaction security, these AI-powered solutions are providing businesses with the tools they need to onboard new users at scale while ensuring the validity of their information, thus combating fraud more effectively.
- The strategic partnership between Volt and Sumsub, in line with their commitment to partnering with innovative brands, aims to address the escalating issue of fraud in Europe by enhancing identity verification and transaction security.
- Sumsub's Penny Drop Verification, a key role in combating this rise of fraud, uses AI to confirm bank account ownership by sending a small test transaction and verifying it, reducing fake account fraud and identity theft in real-time customer onboarding.
- Volt's Open Banking, another key player, leverages AI and APIs to provide secure, instant bank account verification and transaction data sharing, enabling businesses to authenticate users and detect anomalies quickly.
- In markets like Germany, where the end user's qualified electronic signature (QES) is often used for verification, the partnership between Volt and Sumsub becomes particularly critical, as a QES is recognized as a compliant identification method by European Union Anti-Money Laundering (AML) regulators.
- This partnership represents a significant step forward in the fight against fraud in Europe, as it provides businesses with the tools they need to onboard new users at scale while ensuring the validity of their information, thus combating fraud more effectively, in line with the broader EU strategy to boost digital capabilities in fraud prevention.
