Inquiry to Sumsubers: Expected Verification Trends Over the Next Decade
In this week's edition of the Sumsub bi-weekly Q&A series, we're excited to lead the discussion with Vyacheslav Zholudev, co-founder and CTO of Sumsub. This week's topic is all about the verification trends that are shaping the future over the next ten years.
Participants are encouraged to submit their own questions to Sumsub's Instagram and LinkedIn. Your inquisitive minds are an essential part of this engaging exchange!
AI-Driven Fraud Detection: The Future of Risk Management
The AI fraud detection market is projected to grow rapidly from $14.72 billion in 2025 to $65.35 billion by 2034, at a CAGR of 18.06%. This growth is driven by AI's enhanced capability to identify sophisticated fraud patterns and automate risk assessment in real-time. Natural language processing (NLP) and machine learning (ML) will be deeply integrated in fraud prevention, credit assessment, and compliance reporting across global banks and fintechs, improving accuracy and response speed.
AI models will evolve from reactive to predictive compliance, enabling organizations to forecast and mitigate fraud risks earlier. This proactive approach is set to revolutionize the way businesses approach risk and fraud management.
Advancing Identity Verification Technologies
Adoption of AI-enhanced identity verification methods—including biometric authentication, document verification, and multi-factor authentication—will accelerate to meet rising online fraud and KYC compliance demands. Digital and mobile identity solutions will expand, supported by cloud-based deployment models for scalability and accessibility. This will enhance secure onboarding, real-time authentication, and fraud mitigation across sectors such as finance, government, healthcare, and telecom.
Navigating the Fragmented Regulatory Landscape
Regulatory fragmentation will increase due to diverse national and sector-specific regimes. Real-time regulatory reporting, supported by AI/ML, will replace slower batch processes to meet stringent compliance timelines and transparency requirements. Regulatory sandboxes and RegTech-as-a-Service models will proliferate to enable innovation within compliant frameworks. Integration of blockchain for immutable compliance records and expansion into non-financial sectors will further diversify the regulatory landscape.
Navigating this complex landscape requires the orchestration of the customer journey to customize verification procedures based on country specifics. This tailored approach will ensure a seamless verification process for users worldwide.
Deepfake Attacks: A Growing Concern
Deepfake attacks have seen a significant increase, particularly in the APAC region, with Vietnam and Japan leading the number of attacks. As we move forward, AI-generated fraud, including deepfakes, is expected to become a significant issue for companies in the next decade. The US has the highest number of deepfake fraud incidents, underscoring the global nature of this challenge.
In response, service providers will need to expand their list of acceptable IDs, non-doc verification, and alternative verification methods to improve the accuracy and accessibility of their verification process.
A Look Ahead: 2024 and Beyond
In 2024, non-document verification and new language models will become common, further enhancing the inclusivity of verification systems. Over the next ten years, there will be a high level of eID integration into systems, improving verification for users in less developed countries and those speaking lesser-known languages.
The focus of the discussion will be on risk and fraud management trends, with Vyacheslav Zholudev shedding light on the key anticipated trends and strategies for businesses to stay ahead in this rapidly evolving landscape.
Stay tuned for the next instalment of the Sumsub bi-weekly Q&A series, where new answers will be posted every other Thursday. The Q&A series will feature experts answering frequently asked questions, making it an invaluable resource for businesses navigating the future of verification.
- The integration of AI and machine learning in fraud prevention, credit assessment, and compliance reporting across global banks and fintechs will drive business expansion, shaping the future of risk management in finance.
- As we look ahead to 2024 and beyond, the emphasis will be on non-document verification and new language models, aiming to enhance the inclusivity of verification systems, especially in less developed countries and among users speaking lesser-known languages.
