Plaid has updated its Identity Verification (IDV) product to deal with threats posed by fraudsters using artificial intelligence.
The company said in a blog on Tuesday, May 13 (May 13) that new features added to the product include Deepfake and synthetic media detection, facial copy detection to capture repeated fraud attempts to limit age estimates for risk-taking risks, and risk-based traffic that can be adapted in real time to simplify trusted users and upgrade high-risk users.
According to the post, all grid IDV customers can now use the upgrade without the need for additional integration.
“New generative AI models are now popping up almost every week, and even experienced fraudsters use them to generate convincing ID verification sessions at scale,” wrote Glade product marketing manager Danica Kleint and product manager Anthony Sezer in the post. “This shift makes Defensive Deep – layering several independent checks, so nothing is more important than ever.”
PYMNTS reported in April that artificial intelligence makes fraud more complicated. With AI tools, fraudsters can make Deepfake videos or sounds, more persuasive phishing emails and fake images such as driver's licenses.
The technology is also used to combat fraud. According to the PYMNTS intelligence report, the generated AI is good at detecting subtle and novel fraud patterns in unstructured data, thus significantly enhancing fraud detection capabilities. “Can the generated AI break the payment fraud cycle?”
The report found that 83% of financial institutions are focusing on using Generative AI to combat fraud.
In January, authentication products using Plaid jumped more than 400% in 2024.
Plaid said in April that it raised $575 million in new funding a year later, with its product suite “meaningful expansion.”
“Grid has evolved from a business focused on bank links to a suite of data analytics products that are critical to financial services and adjacent markets,” Zach Perrett, co-founder and CEO of Plaid, wrote in an April 3 blog post. “Whether it is registering new users, fighting fraud, enabling bank payments or making underwriting decisions, our network is at the heart of customers' business operations and consumers' financial lives running.
