LexisNexis Risk Solutions, which supplies data insights to the insurance industry, has completed its acquisition of IDVerse, a provider of AI-powered document authentication and fraud detection solutions – a timely move as the sector increasingly turns towards artificial intelligence.
The use of AI is ramping up across the industry, with a Rackspace survey in 2023 revealing that 62% of insurers had cut staff due to AI. Yet while AI might boast a host of positives in the forms of efficiencies, it does not come without its own risks. Deepfake schemes, for example, are becoming increasingly common for businesses. A recent Medus survey found that the majority (53%) of finance professionals had been directly targeted by deepfake scams. Perhaps of greater concern is that an eye-catching 43% admitted they had ultimately fallen victim to the attack.
IDVerse, founded in Australia and commercially launched in 2018, uses AI to detect fraud and deepfakes. Its proprietary technology verifies identity documents and, with consumer consent, matches a consumer’s face to the photo on a document using biometric algorithms. This process enables identity verification and liveness detection to help identify fraudulent submissions.
With the deal’s completion, IDVerse becomes part of the business services segment of LexisNexis Risk Solutions and remains available within the LexisNexis RiskNarrative platform and LexisNexis IDU. It will also be offered as a stand-alone solution within the LexisNexis Dynamic Decision Platform later this year.
Following the integration, LexisNexis Risk Solutions will offer clients enhanced risk insights aimed at strengthening consumer protection. The hope is to improve defences against AI-generated fraud.
“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,” said Rick Trainor, chief executive of business services at LexisNexis Risk Solutions.
Financial terms of the agreement were not disclosed.
