Sumsub’s Role in Fraud Prevention in Asia

Sumsub’s Role in Fraud Prevention in Asia

by November 10, 2023

The realm of digital identity verification and compliance has seen significant evolution over the past decade. As the digital economy expands, the sophistication of fraudsters grows in tandem, making traditional Know Your Customer (KYC) checks insufficient as a standalone defence.

In Asia, with its complex web of regulations and high internet penetration rates, businesses are finding it increasingly challenging to keep up with the myriad compliance requirements. It’s not just about onboarding anymore; continuous verification is imperative, and fraud can no longer be an afterthought.

Sumsub has risen to this challenge. What began as a KYC vendor in 2015 has transformed into a robust full-cycle verification platform that enables businesses to fortify their defences against fraud at every user journey stage.

Full-Cycle verification

Sumsub’s unique capabilities cater to the intricate and diverse regulatory landscape across Asia, providing an essential tool for companies striving to remain compliant while combating fraud.

Penny Chai, Sumsub

Penny Chai, Sumsub’s Vice President of Business Development

Penny Chai, Sumsub’s Vice President of Business Development for the Asia-Pacific region, shed light on the strategic direction of the company’s platform.

“The onset of eKYC was initially effective in countering common onboarding frauds. However, our research and close dialogues with compliance officers and regulators have provided invaluable insight—most fraudulent activity occurs post-onboarding. This realisation has shaped our platform’s evolution to cover end-to-end fraud detection,” she said.

By extending its capabilities beyond the onboarding process, Sumsub provides businesses with a comprehensive solution that enables them to look beyond initial identity verification.

The platform assists compliance officers in detecting various types of fraud—compliance, behavioural, and transactional. It also facilitates the creation of watch lists and employs rule engines to identify and prevent suspicious activities. This holistic approach ensures that businesses can secure each facet of the user journey from potential threats.

Adapting to the Asian markets’ diversity

Discussing the success of Sumsub’s platform, Penny highlighted the impressive pass rate for ID verification in Hong Kong.

“While a 97.89 percent pass rate is certainly noteworthy, it’s the factors contributing to this achievement that demonstrate our platform’s efficiency. Our system’s reliability, coupled with an intuitive user experience and a dashboard in simplified and traditional Chinese, enables developers in Asia to work efficiently, optimising compliance processes,” she added.

The platform’s agility allows financial institutions to tailor the user experience without compromising compliance or security. This adaptability is particularly beneficial in regions like Hong Kong, where businesses must adhere to strict regulatory standards while ensuring a frictionless customer experience.

Eight years and counting

Reflecting on Sumsub’s eight-year journey from a KYC vendor to a comprehensive full-cycle verification platform, Penny explained how this evolution has enhanced the platform’s capabilities.

“Fraud prevention is a never-ending battle. As fraudsters evolve, so too must our solutions. By understanding both the user lifecycle and the behaviours of scammers, we’ve expanded our platform to include transaction monitoring and compliance reporting—going beyond mere transactions to monitor the movements and changes in user identity,” she said.

In the 2023 Crypto Industry Study, it was reported that deepfakes had surged by over a hundred percent compared to the previous year, revealing a stark reality: fraudsters are becoming increasingly technologically adept.

In response, Sumsub leverages its generative AI to confront these advanced threats.

“Our generative AI is the sentinel at the gates, constantly updated to recognise and counteract the newest fraudulent techniques, including deepfakes,” Penny explained. “It’s not just about catching fraud; it’s about staying steps ahead of it.”

The platform’s sophisticated algorithms and generative AI technology are critical in identifying and preventing complex fraudulent schemes, including deep fakes—a growing concern in the cryptocurrency industry and beyond.

Setting Sumsub apart in Identity Verification

Sumsub’s recognition as a top pick by G2 and as a representative vendor by the Gartner Market Guide reflects its commitment to excellence and innovation in identity verification.

The platform’s differentiators are its holistic, one-platform approach that simplifies vendor management and its AI-driven technology that constantly learns and adapts to new fraud patterns.

Additionally, its global coverage, supporting verification in 230 countries and territories, gives businesses the confidence to scale internationally without regulatory compliance becoming a barrier.

“Our commitment is unyielding when supporting businesses through every twist and turn in the evolving fraud landscape,” said Penny.

Adapting to change with foresight

As businesses in Asia continue to engage with digital transformation, the need for a comprehensive solution to navigate the complex regulatory and fraud prevention terrain becomes more acute.

Sumsub’s full-cycle verification platform is a paragon of such an innovation, where compliance and convenience are not at odds but are interwoven to create a secure, seamless experience.

Penny reflected on this saying,

“In the fast-evolving digital realm, especially across varied Asian markets, the essence of staying compliant and safeguarding against fraud is rooted in adaptability and foresight. Sumsub’s platform is built upon these pillars, ensuring that as the fraudsters evolve, so do we, always one step ahead, guarding the integrity of our client’s operations and their customers’ trust.”

For a deeper insight into cutting-edge identity verification solutions, schedule a meeting with the Sumsub team.