iDenfy Patents New Hybrid Address Verification System for Enhanced KYC Security

iDenfy has achieved a significant milestone with its first patent filing for an innovative Address Verification service, published by the World Intellectual Property Organization (WIPO) across 158 countries. The patent details a hybrid verification method that integrates physical and digital processes to enhance the security of user address validation. The development comes as iDenfy continues to expand its compliance technology portfolio, following its recent SOC II certification and establishment of U.S. operations.

The technology addresses key weaknesses in conventional Proof of Address (PoA) verification methods, which typically rely on utility bills and similar documentation vulnerable to manipulation. The new system operates by dispatching a physical letter containing secure credentials to the user’s stated residential address. Recipients then complete an identity verification process using these credentials, thereby confirming both their identity and physical presence at the specified location.

“The system prevents address verification tampering through its dual-verification approach,” said Domantas Ciulde, CEO of iDenfy. “The process validates both physical access to the address and the user’s identity when they initiate verification with the provided credentials.” The innovation builds upon iDenfy’s existing identity verification infrastructure, which the company has been strengthening since opening its Delaware office to serve the U.S. market.

The solution enhances compliance with Know Your Customer (KYC) regulations while streamlining onboarding processes for sectors with elevated risk profiles, including financial services, e-commerce, and gig economy platforms. The advancement comes at a time when fraud-related losses continue to increase, with the Association of Certified Fraud Examiners documenting a 24 percent rise in median losses during the past year.

The Address Verification patent follows several recent technological developments from iDenfy. The company launched an AI-powered Data Crossmatch tool for Know Your Business (KYB) compliance in late 2024, providing efficient access to global company records. The system complemented the company’s automated KYB solution for sole proprietors, demonstrating iDenfy’s commitment to comprehensive business verification services. Earlier, in October 2024, iDenfy introduced an electronic Identity Verification (eIDV) solution that expedites KYC checks through direct validation against U.S. databases.

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January 7, 2025 – by the ID Tech Editorial Team