UK consumers expect banks to detect fraud during online identity checks

By Divya Shah

Key takeaways

• Low consumer confidence: 69% of UK adults surveyed were not very confident their bank could distinguish them from a sophisticated fraudster.

• High expectations: 80% expected banks to detect deepfakes during selfie-based identity checks.

Research conducted by Digidentity among 1,000 UK adults found that 69% were not very confident that their bank could distinguish them from a sophisticated fraudster. At the same time, 80% expected banks to successfully detect a deepfake of their face during a selfie-based identity check. 

The findings highlight a gap between consumers’ expectations and their confidence in banks’ ability to prevent identity fraud. They also point to the importance of the assurance provided by the identity verification services banks use. 

More than half of respondents believed that a code sent by text message or email was sufficient on its own to prove someone’s identity. However, this method can be vulnerable if a fraudster gains access to a compromised email account or phone. 

Similarly, matching a selfie with the photograph on an identity document does not necessarily prove that the genuine document holder is completing the verification. Effective checks also need to establish that the person is physically present and detect manipulated images or fraudulent documents. 

These limitations mean banks need to look beyond basic verification methods. Identity checks should combine document authenticity assessments, facial comparison and liveness detection to establish that an applicant is the legitimate holder of the identity document. 

Customers may not understand the technical differences between these checks, but they rely on banks to select identity providers that can deliver an appropriate level of assurance. Independent assessment can also help banks understand the standards and capabilities behind a verification service. 

The consequences of failed identity verification can extend beyond the initial account opening. If a fraudster opens an account using someone else’s identity, the affected individual may spend months disputing debts and correcting inaccurate records. 

Digidentity’s research found that 81% of respondents believed banks should be held responsible if their identity verification provider failed to prevent fraud. This suggests customers continue to associate responsibility for protecting their identity with their bank, regardless of which provider performs the checks. 

The findings also indicate that customers value stronger security, provided it does not create unnecessary delays. While 78% said they would feel more confident using a bank with advanced verification, 62% would accept no more than two additional minutes of checks to significantly reduce the risk of impersonation. 

Jonathan Evans, UK Country Manager at Digidentity, said banks’ reputations were closely linked to the identity providers they selected. If a provider allowed an imposter to pass verification, the bank’s relationship with its customer could suffer. 

He added that stronger protection should not make the account-opening process unnecessarily difficult for genuine customers. Banks should expect identity providers to make impersonation harder while keeping verification straightforward for legitimate applicants. 

 For banks to rely on digital identity verification, they need to understand how an individual’s identity was established and which independently assessed standards support the service. 

Digidentity said its approach combines remote identity verification with independently assessed identity infrastructure. Its checks include document verification, liveness detection and facial comparison to help establish whether the person presenting an identity document is its genuine holder. 

The company is included on the GOV.UK Register of digital identity and attribute services, allowing banks to review its assessed credentials and the scope of its services. Customers can also complete verification through the Digidentity Wallet app on their smartphones. 

As digital account opening becomes more common, banks will need to balance robust identity assurance with a smooth customer experience. The research suggests that consumers expect financial institutions to detect increasingly sophisticated impersonation attempts while keeping the verification process quick and convenient.