In 2023, over three trillion dollars moved through the global financial system from illegal activities. This included money laundering, terrorist financing and human trafficking. Of these losses, 41 billion euros came from online scams involving banks and financial institutions worldwide.
Fraudsters are constantly developing new methods to obtain illegal money, which is why companies must protect themselves and their users by implementing digital identity verification through various biometric methods, such as liveness checks, liveness detection, and liveness verification.
What are Liveness Checks
Long before liveness checks for online activities like shopping or gambling, similar real-world identity verification methods existed. We've all seen spy films with retina scans for high-security access. At airport checkpoints, they don't just check a passport—they verify the holder is physically present. In biometric access control, systems ensure it’s a person, not a photo or model, with real-time face or iris scans. And bouncers at clubs check ID and face to confirm guests are not using a fake. Liveness checks work in the same way, ensuring the person interacting with a system is real, not an imitation.
Today’s liveness checks are a feature of biometric identity verification (such as facial recognition or fingerprint scans) that uses AI (artificial intelligence) and ML (machine learning) to confirm that the person is real and alive, instead of being tricked by a static image, video, or 3D model. A liveness check involves comparing the user’s live facial recognition with an ID document (such as a passport or driver’s license) to ensure the person’s identity is authentic. Liveness checks are essential for preventing spoofing attacks, where fraudsters attempt to bypass identity verification processes.
How do Liveness Checks Work
A liveness check is a part of the identity verification for financial services, government services and other services that need to do a identity verification.
- Start the Identity Verification Process
The user is asked to take a selfie or record a video using their phone or computer´s camera. This is the first instance where the liveness check starts collecting the persons biometric data (face, voice and fingerprints)
- Follow the Instructions
Once the liveness check has analyzed the face, the user may be asked to make some additional movements to confirm they are a real person.
- “Move your head within a certain range.”
- “Blink your eyes.”
- AI and Machine Learning (ML) Analysis
Using AI (artificial intelligence) and ML (machine learning), the data from the liveness check is analyzed to detect patterns that confirm the person is real. This is done by comparing the collected data with known patterns of live humans.
Liveness check analyzes the users movements and facial features to verify that they are interacting with a real person. It analyzes subtle muscle movements around the eyes and mouth, as well as changes in light and shadow as the user moves. 3D technology is also utilized to evaluate the depth and texture of the face, adding an extra layer of verification.
- Real-Time Processing
Verification happens in real-time, meaning that the system collects and processes data while the user is performing the liveness check. This makes the process fast and efficient.
- Liveness Check Verification
If the system confirms the user is a real person and all data looks correct, the identity verification is approved, and the identity is confirmed. If the system detects anything suspicious or cannot verify the identity, the user will be asked to try again.
Performing Liveness Checks on Mobile Phones
Liveness checks are best performed using a mobile camera because it offers higher image quality and is more effective for analyzing facial features compared to a computer. For accurate results, users should be in a room with sufficient lighting conditions. Good lighting helps the camera capture clear facial reflections and detect movements more effectively.
Active Liveness vs Passive Liveness Checks
There are two types of liveness checks that analyze the person behind the screen, but in different and more advanced way. During an active liveness check, the user must prove that they are real and not a picture or recorded video. This is done by asking the user to perform various actions, such as turning their head, smiling, blinking, or following other instructions. Liveness checks are performed in real-time to quickly detect fraud attempts and ensure that only a real person completes digital identity verification.
Passive and active liveness checks have the same goal. To ensure that there is a real person on the other side of the screen, not just a photo or a recorded video. Both types of checks use AI (artificial intelligence) and ML (machine learning) to analyze various data points.
With passive liveness checks, users don’t need to make any movements. Instead, liveness check verification system analyze small details like skin texture, light reflections, and shadows to confirm the user’s realness in real time.
Hybrid Liveness Check
Hybrid liveness check is designed to combine both active and passive liveness checks during customer verification. The focus is to create a smoother and more user-friendly liveness detection process. With a hybrid liveness check, the user may be prompted to perform an action, such as smiling while taking a selfie, if the system requires additional verification to ensure accuracy.
Liveness Checks Onboarding for Companies
The onboarding process needs to be both secure and seamless for both the user and the company. By using real-time liveness checks, users can verify their identity from anywhere in the world, without the need to be physically present. Liveness checks not only reduces the risk of identity fraud but also improves the overall efficiency of the identity verification process. For companies, integrating liveness checks streamlines customer onboarding by reducing the need for manual verification, saving time and resources.
Customer Onboarding with Liveness Checks
During an onboarding process, companies in sectors such as healthcare, financial services like banks, and other organizations need to create a secure and safe onboarding experience for their customers. By following KYC regulations, companies protect both themselves and their customers by implementing digital identity verification and preventing fraud and identity theft.
The Role of Liveness Checks in KYC
The global digital identity verification market is projected to reach $21.8 billion by 2028, driven by the growing adoption of secure digital tools across sectors such as healthcare, financial services, and e-commerce. Central to this growth is the use of liveness checks, a biometric verification method ensuring that a person’s face verification is real, not a fake image or video.
In the KYC (Know Your Customer) process, liveness checks play a crucial role in compliance with AML (Anti-Money Laundering) laws, helping businesses verify customer identities, prevent fraud, and ensure regulatory adherence. For example, when opening a bank account online, a customer may be asked to perform a liveness check as part of identity verification. These checks not only strengthen security but also provide a seamless, user-friendly experience for remote onboarding and secure transactions.
Meeting KYC and AML Compliance Standards
Regulated companies must comply with KYC regulations and AML (Anti-money laundering) to help prevent money laundering, terrorist financing and fraud.
KYC (Know-your customer): Regulated companies are required to verify the identity of their customers during onboarding, online purchases, or tax payments. Liveness checks are a biometric method used to confirm the customer's identity and ensure that the person is indeed who they claim to be. In biometric verification, liveness checks can be used to ensure the customer is a living person, preventing the use of a photo or video to deceive the system.
AML (Anti-money laundering): Along with KYC, AML helps companies identify and prevent fraud or other illegal online activities that could be used to illegally earn money. AML procedures track financial transactions to detect and prevent money laundering and the financing of terrorism.
Why are Liveness Checks Key for Biometric Systems
Companies need the best possible identity verification solution to protect themselves from financial losses and their customers from fraud. Using liveness checks as part of biometric verification ensures valid identity verification while also complying with KYC (Know Your Customer) regulations. Liveness checks provide a secure and trustworthy experience throughout the onboarding process and the entire customer journey.
Cybercrime has increased in recent years, and the total cost is expected to reach as high as 15.63 trillion USD by 2029. Liveness checks make it harder for fraudsters to bypass authentication and provides both companies and customers with a higher protection.
Why are Liveness Checks Crucial for Biometric Verification
- Fraud Prevention: Ensuring the person is live and present during the identity verification process, companies can reduce risks associated with identity theft, account takeovers and other types of fraud.
- KYC Compliance and Regulations: All regulated industries, banking, financial services and e-commerce, are legally required to comply with KYC and AML regulations, which require the use of secure identity verification methods, such as liveness checks to prevent fraud and ensure compliance.
- Improved Customer Experience: Liveness checks verify the user's face quickly and smoothly. Sometimes, if a user forgets their password, they can verify themselves by using a liveness check.
- Increased Security: Liveness checks add a critical layer of protection to biometric verification, making it much harder for fraudsters to bypass the system using photos, videos, or masks.
Can Liveness Checks be Bypassed?
Yes, a liveness check can be bypassed by fraudsters. Technology is constantly evolving, both to improve security and to create new methods for scam. The technology behind liveness checks is not flawless and can sometimes make mistakes when verifying an identity. Fake photos and videos, including deep-fakes, can also trick the system.
Therefore, it's crucial for companies to use more than just liveness checks as part of their customer identity verification process, combining multiple tools to ensure stronger security and clarity.
Which Industries Needs Liveness Checks?
Liveness checks are a identity verification that companies can use during onboarding processes or when customer processing digital purchases to ensure the authenticity of the identity. For regulated companies, it is not only important but also obligatory to comply with KYC regulations (Know Your Customer). By implementing liveness checks in identity verification, companies strengthen their security and protect themselves from fraud, identity theft, and other illegal activities.
Failure to comply with KYC requirements can lead to serious consequences for companies, including fines, damage to their reputation and potential legal actions. Therefore, it is crucial for businesses to see liveness checks not just as a security measure, but also as a necessary investment to meet legal requirements and protect their customers and operations from financial and legal risks.
Operations That May Need Liveness Checks:
- Financial Services
- Telecommunication
- Healthcare
- Government Services
- iGaming
- Business
To learn more about how to implement Selfie Liveness Verification into your customer onboarding, or Identity Verification process you can contact us or request a demo.