Identity Gaps Are Becoming Billion-Dollar Points of Failure

“Identity at Scale: Where KYC/KYB Touchpoints Create (or Contain) Agent Risk,” a collaboration between PYMNTS Intelligence and Trulioo, shows how companies are adapting to that shift. On average, firms now use digital identity checks in 4.4 different workflows, reflecting how deeply verification is embedded in day-to-day operations. At the same time, new threats are emerging. Automated bots and AI-driven attacks occur throughout the identity process, especially in high-value areas such as lending.

Companies that apply digital identity checks in only a few areas tend to face greater fraud pressure, customer friction, and missed opportunities. They are more likely to block legitimate users or let risky ones through. In contrast, companies that use identity checks more broadly across their operations report more stable performance, fewer breakdowns and better outcomes for both the business and its customers.

In this report, learn how:

• Digital identity verification has moved beyond onboarding into everyday operations. Companies now use identity checks across login, payments and fraud prevention monitoring, making it part of how the business runs.
• Automated threats are spreading across the entire identity process. Bots and AI-driven attacks are appearing at every step, increasing pressure on systems not built to handle them.
• Using identity checks more broadly can improve both security and growth. Firms that apply digital identity controls across more workflows report fewer errors, smoother customer experiences and stronger overall performance.

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About the Digital Identity Framework

“Identity at Scale: Where KYC/KYB Touchpoints Create (or Contain) Agent Risk” is based on a survey of 350 companies conducted from Aug. 1, 2025, to Sept. 10, 2025. The report explores the effectiveness of digital identity systems in fraud prevention and driving growth. Industries surveyed included financial services, gig platforms, online marketplaces, retail trade, software platforms and travel and hospitality. Companies operate in the United States, Canada, the United Kingdom, the European Union and other European countries, China, India, Japan and other Asia-Pacific countries, the Middle East, Australia/New Zealand, Africa, and Mexico and other Latin American countries.