Visa The Embedded Lending Opportunity April 2024 Banner

Entrust Acquires Onfido Amid Jump in ID Fraud

identity verification

Data security firm Entrust has finalized its purchase of identity verification company Onfido.

“With this completed acquisition, Entrust now provides the industry’s most comprehensive portfolio of AI-powered, identity-centric security solutions,” the company said in a news release Tuesday (April 9).

Entrust did not disclose the terms of the deal, which was first announced in February.

The release notes that attacks on identity are increasing, with a majority of these breaches stemming from compromised credentials. Onfido says it saw a 3,000% increase in deep fakes and a five-fold jump in forged identities over the past year, with its technology blocking an additional $6 billion in potential fraud in the last 17 months.

“This acquisition comes at an inflection point in the industry,” said Todd Wilkinson, Entrust’s president and CEO. “With the acquisition of Onfido, our customers can leverage global-leading identity verification technology to meet the new challenges of cybersecurity in the age of AI.”

According to the release, the deal lets Entrust add a range of Onfido capabilities to its portfolio, including its biometrics, artificial intelligence (AI)/machine learning, and no-code orchestration.

“With its updated and new solutions, organizations can secure digital-first experiences for customers, citizens, and their workforces, while complying with global regulations and reducing fraud,” the company said.

The partnership comes as both American consumers and businesses are contending with fraud on previously unheard-of levels.

New data from the FBI shows online scams cost Americans a record $12.5 billion in 2023, a 22% spike from the prior year. Still, the numbers also show Americans have gotten more vigilant, as the FBI says it also got a record number of complaints about online crimes last year — 880,000 — a bump of almost 10%.

“But, the agency cautions, a few grains of salt might be in order, because most online fraud goes unreported,” PYMNTS wrote. “What was reported is striking. Losses due to online investment scams top the FBI’s list of 2023 cybercrimes, costing Americans $4.57 billion last year, up 38% over the $3.31 billion lost in 2022.”

Other major losses came from bogus email scams ($2.9 billion), tech support scams (nearly $1 billion) and losses due to ransomware (almost $60 million).

Meanwhile, PYMNTS Karen Webster spoke recently with Intellicheck CEO Bryan Lewis, who said not all frauds have high-tech origins. In some cases, it’s simply the matter of criminals spending $20 to purchase stolen credentials.

“What we’re battling is accessible identity elements,” said Lewis, “and the fraudsters who are using them … synthetic identities take a long time to build up, but getting the licenses is the easy part.”