UK Fintech Firm Implements Random Selfie Checks to Fight Fraud

ANNA Money, a fintech company claiming a customer base of more than 100,000 small and medium-sized enterprises (SMEs) in the United Kingdom, has announced biometric re-authentication measures to strengthen security against financial crime. The new security feature activates when an ANNA account is accessed from a mobile device different from the one it was set up on, prompting the user to verify their identity with a selfie. If the facial biometrics do not match the account holder’s original profile, the account is suspended to prevent unauthorized access.

In addition to the device-based trigger, ANNA has implemented random biometric re-authentication checks, further enhancing security. These periodic checks require account holders to take selfies, ensuring that unauthorized users or fraudsters attempting to access an account are instantly blocked.

Leven Li, ANNA’s Chief Compliance Officer, asserted that the biometric checks are quick and non-intrusive while offering robust protection from various types of fraud, such as stolen devices or money laundering schemes involving “mule” accounts.

“It’s just a quick selfie – which we are all used to doing – and it’s keeping our customers and their accounts much safer from day-to-day threats, like fraudsters trying to scam their way in or phone snatchers who try to access accounts by bypassing security protections,” she said.

ANNA’s approach aligns with the UK Payment Systems Regulator’s new rules, which mandate financial institutions to reimburse victims of Authorised Push Payment (APP) fraud, effective from October 7, 2024. Under the new regulations, payment service providers must compensate eligible customers who fall victim to scams where fraudsters trick them into transferring funds to fraudulent accounts.

Formally known as Absolutely No Nonsense Admin Ltd., ANNA Money was founded in 2017 and offers a business-focused financial platform designed specifically for small businesses and freelancers. It launched a beta version of its app in April 2018, with a full release later that year in September. The company provides services such as business bank accounts, invoicing tools, and tax assistance through a mobile app and web platform, integrating features to help users with administrative and financial management tasks.

ANNA Money operates under an e-money license via Payrnet, meaning it’s regulated by the UK’s Financial Conduct Authority but doesn’t hold a banking license. In 2019, the company raised significant funds through an equity crowdfunding campaign on Seedrs, and in 2020, it expanded international payment capabilities through partnerships with services like Payoneer and CurrencyCloud. Notably, in 2022, ANNA became fully founder-owned after cutting ties with ABH Holdings, a Russian investment group, following the onset of the Russia-Ukraine conflict.

Source: Fintech Finance News

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October 12, 2024 – by Ali Nassar-Smith