LSEG Risk Intelligence Unveils AI-Driven Solutions for Global Payment and IDV

LSEG Risk Intelligence, a division of the London Stock Exchange Group (LSEG), has launched two verification solutions incorporating biometric authentication and digital identity validation to address evolving fraud challenges in financial services. The solutions leverage facial recognition, liveness detection, and document verification technologies as part of a comprehensive approach to combat financial fraud. The new offerings expand LSEG’s risk management portfolio, which includes the World-Check screening platform implemented by major financial institutions since 2000.

The Global Account Verification (GAV) solution specifically targets Authorized Push Payment (APP) fraud, which according to UK Finance caused £213.7 million in losses in Britain during H1 2024. GAV enables real-time verification of bank account details across 22 countries, with LSEG stating plans to expand coverage to 80 percent of G20 nations by Q1 2025. The system aligns with the European Union’s upcoming regulations requiring 24/7 instant payment verification by January 2025.

Document and Biometric Verification (DBV) addresses emerging synthetic identity threats, including deepfake fraud. According to LSEG, the system can authenticate more than 16,000 types of identity documents from over 220 countries and territories using facial recognition, liveness detection, and document validation technologies. The solution integrates with existing know-your-customer (KYC) workflows through standardized APIs.

These launches come as financial regulators worldwide strengthen anti-fraud requirements. The UK’s Payment Systems Regulator has mandated new fraud prevention measures for 2024, while the EU’s upcoming regulations will require enhanced payment security protocols. LSEG reports that both solutions are designed to help organizations meet these evolving compliance obligations.

Ramesh Menon, Group Director of Product Management for Digital Identity & Fraud at LSEG Risk Intelligence, stated that the solutions respond to increasingly sophisticated fraud techniques. The company indicates that early implementations have been deployed at several major financial institutions, though specific performance metrics have not been disclosed.

The new verification tools complement LSEG’s existing compliance and risk management services, including World-Check risk intelligence and due diligence reporting. These services are used by financial institutions, corporations and government agencies for regulatory compliance and fraud prevention. LSEG, which operates the London Stock Exchange and provides financial data services, has expanded its risk and compliance offerings since acquiring Refinitiv in 2021.

Sources: LSEG, UK Finance

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October 30, 2024 – by the ID Tech Editorial Team