According to the Bitkom study ‘Economic Protection 2024’, 81% of German companies were affected by data theft, espionage or sabotage last year. This is an alarming increase compared to 2023, when 72% were affected.
Increasing digitalisation therefore brings not only efficiency, but also new risks: stolen data, fake accounts and identity fraud are now among the biggest threats to online business.
Direct debit payments in particular pose significant default risks for companies – for example, through false identity information or misused account details. However, companies have a way to protect themselves against payment fraud in direct debit transactions by verifying suspicious transactions before the sale is completed.
Fake accounts, data misuse and AI-based deception
Danger from the dark: How fake accounts, data misuse and AI-based deception threaten companies
In an increasingly automated and AI-powered digital world, fraudulent activities are taking on new forms – and becoming increasingly difficult to detect. This presents a number of challenges for companies with digital business models:
AI fake accounts infiltrate digital platforms
Through the use of artificial intelligence, fraudulent accounts can now credibly imitate human behaviour – in terms of language, interaction and profile creation.
This makes it increasingly difficult for companies to distinguish between genuine and fake user profiles. Although these fake accounts can lead to a short-term increase in user numbers, they cause massive damage to the company in the long term:
- They distort KPIs and decision-making templates
- They impair the quality of the platform
- They undermine the integrity of the product
Misuse of stolen data causes direct damage
Even more serious is the use of stolen identity or payment data. With a real name, IBAN or login details, transactions can be initiated directly in many systems – especially with unsecured direct debit procedures. The damage usually affects the platform operator or shop provider, who is liable for chargebacks, misuse and complaints.
Debt collection as a last resort
Debt collection as a last resort: why prevention is often the better strategy
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When invoices are not paid, companies quickly find themselves in difficult situations. A common response to non-payment is to engage a debt collection agency. However, this step is usually only taken once the damage has already been done – and is therefore often just an attempt to mitigate the worst.
Handing over a debt to a debt collection agency not only incurs additional costs, but also offers no guarantee that the outstanding amounts will actually be recovered. Success is particularly uncertain in the case of defaulting debtors who are themselves in financial difficulties. Companies are therefore inevitably faced with the question: Is it worth the effort – or do the costs ultimately exceed the benefits?
Against this backdrop, the topic of prevention is becoming increasingly important. After all, those who identify risks early on and, in the best case, avoid payment defaults altogether not only save money, but also time and human resources.
Effective Verimi ID check
Effective Verimi Ident-Check: security through verification before service provision
With the Verimi Ident-Check, companies can effectively protect themselves against fake accounts, identity fraud and payment defaults – without compromising user-friendliness. The modular identity service combines security, legal compliance and high conversion in a flexible process.
Whether via SEPA direct debit or a payment initiation service (PIS): Ident-Check minimises the risk of default. With direct debits, Verimi even assumes the risk of chargebacks – companies receive their money reliably. Alternatively, an authorised payment can be triggered directly from the customer’s account.
The highlight: customers choose which method they want to use – this reduces cancellations and increases the conversion rate. The solution is extremely cost-efficient: only a simple ‘yes/no’ confirmation is returned at the end of the process, without any complex data records or receipt data. This means that even with larger volumes, the unit costs remain well below 50 pence per transaction.
The result: secure payment processes, guaranteed liquidity and a seamless user experience – without any additional effort for your customers.
Step by step: How the Verimi ID check works
- Test cases: The partner uses defined business rules to determine which transactions are to be checked – for example, in the case of multiple orders on the same day or when a defined order value is exceeded.
- Selection of the identification procedure: With the customer’s consent, the relevant order data is transmitted to Verimi. The customer selects the desired identification procedure themselves.
- Verimi carries out the check: Verimi checks whether the data transmitted from the order matches the information in the identity check.
- Partner communicates with customer: Direct debit is carried out securely.
Verimi Ident-Check
The Verimi Ident-Check includes the following identification procedures:
- Digital identity verification is not a one-size-fits-all solution – different methods are appropriate depending on the application and target group. Verimi Ident-Check offers you a selection of flexible identity solutions that can be easily integrated into your processes – legally compliant, efficient and user-friendly. An overview:
1. Bank ID: Fast and reliable via online banking
With Bank ID, your customers can conveniently identify themselves via their existing online banking account. The login serves as secure authentication – right up to AML/CFT and KYC compliance. Ideal for applications where speed and widespread use are important.
2. Photo ID: Simply via ID photo and selfie
With Photo ID, all you need is a picture of your ID document and a selfie – the comparison is done automatically. This method is particularly suitable for low-threshold processes where speed and simplicity are required.
3. eID ID: Identification with online ID
With eID ID, your customers can identify themselves in compliance with the GwG using their electronic ID card and smartphone. The solution offers high security and automation, ideal for digital administrative processes or demanding industries.
4. Wallet-Ident: One-click identification via digital identity
Wallet-Ident uses existing digital identities. Your users confirm their identity with just one click – fast, seamless and conversion-friendly. Particularly suitable for returning users and highly digitised use cases.
Practical example: Preventing fraud in direct debit payments
Practical example: How companies effectively prevent fraud in direct debit payments
More and more companies are relying on digital identity checks to prevent misuse of direct debit procedures. Verimi Ident-Check has proven to be an effective tool with clearly measurable results: the number of fraudulent transactions has been significantly reduced since the procedure was introduced.
At the same time, Ident-Check also impresses users: The process is perceived as simple, transparent and fast, which has a positive effect on acceptance and conversion rates.
The effect is clear: fraud attempts are increasingly shifting to providers without comparable protective measures. This is creating growing pressure to act for all parties involved, especially in markets with uniform products and multiple distribution channels, such as ticketing or payment transactions.
But the advantages go beyond individual industries: Companies outside the mobility and finance sectors that accept direct debit payments also benefit from a reliable identification procedure. Verimi Ident-Check ensures that only verified individuals can initiate transactions – while remaining highly user-friendly.
Find out more in our case study – learn how a successful company is using Ident-Check to reduce fraud risks while making its processes more customer-friendly.
Need more information or want to integrate Ident-Check seamlessly into your processes? Find out more here.
