Revolutionizing Identity Verification And Fraud Detection

Socure recently made waves in the industry with its acquisition of San Francisco-based startup, Berbix. This strategic move solidifies Socure’s commitment to advancing the field of identity security and fraud prevention. The integration of Berbix’s cutting-edge document verification technology into Socure’s existing capabilities promises to deliver improved accuracy, speed, and fraud capture. The acquisition could have a significant impact on businesses and consumers.

I spoke with Johnny Ayers, founder and CEO of Socure, about the acquisition. He explained, “The goal of what we’re trying to achieve is to be the first to be able to verify 100% good identities and completely eliminate identity fraud.”

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He added, “This is a problem across everything consumers touch on the internet, so the goal we’re working toward is to be the most inclusive and accurate identity verification and risk prevention company in the world.”

Document Verification

The acquisition of Berbix marks Socure’s first foray into the M&A landscape, highlighting the company’s determination to establish itself as an industry leader. The fusion of Socure and Berbix technologies has expedited Socure’s innovation roadmap by at least 18 months, leading to the launch of Predictive Document Verification (DocV) 3.0. According to Socure, this latest version surpasses competitors in terms of accuracy, speed, user experience, and fraud capture.

Performance and Expertise

Socure’s decision to acquire Berbix stems from the latter’s exceptional performance and expertise in document verification. While other vendors in the market often overpromise and underdeliver, Berbix consistently outperformed its competitors. With an impeccable track record of winning head-to-head tests against all challengers, Berbix proved its reliability and effectiveness.

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Berbix’s founders, Eric Levine and Steve Kirkham, former members of the Airbnb Trust and Safety Team, developed a state-of-the-art forensics engine capable of detecting counterfeit IDs, including AI-generated fakes. By leveraging sophisticated image processing pipelines, Berbix’s engine reads every human and machine-readable component of an ID, ensuring unparalleled precision in identifying compromised and fraudulent documents.

Ayers described the deep subject matter expertise of the Berbix founders and team to recognize what represents a good or bad identity. “There are simple things that humans can intuit, combined with what machines are able to pick up in terms of patterns, combined with really large, complex machines learning models that—in combination—allow you to move from basis points to percentage points to tens of percentage points in terms of accuracy.”

Synergy of Technologies

Socure’s expertise lies in combining improved user experience with predictive machine learning fraud models, trained on a vast array of third-party data sources. By integrating Berbix’s technology, Socure now possesses a comprehensive identity verification solution. Socure’s AI-driven image capture technology identifies and guides users through the ID and selfie intake process, reducing friction and improving the onboarding experience. Meanwhile, Berbix’s document verification engine analyzes and authenticates IDs with remarkable accuracy, creating a holistic approach to identity verification.

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Quantifiable Metrics

The newly introduced DocV 3.0 sets a new benchmark for document verification. Socure’s solution outperforms the industry standards across various metrics, including fully automated decisioning, first-attempt auto approvals, fraudulent document capture, and speed to decision. These improvements have tangible benefits for businesses, leading to increased consumer acquisition, revenue, and reduced fraud losses.

Real-World Impact

Ayers believes that the addition of Berbix and the impact of DocV 3.0 will be substantial. In the press release announcing the acquisition, Ayers explains, “A global enterprise, for example, can see an extra $86.1 million in revenue in a single year with Predictive DocV 3.0. If they’re running 500,000 checks a month on consumers with a per-year revenue value of $50, improving auto-acceptance of customers by 26% can mean a lift in revenue of $78 million over 12 months. Meanwhile, increasing fraud capture by 27% in that environment, where we’ve actually seen 50 basis points of fraud and an average loss of $1,000, can return $8.1 million over the same period. That doesn’t include the massive amount of savings accrued by reducing the number of investigators who need to manually review potential incidents.”

Innovation and Expansion

DocV 3.0 not only revolutionizes existing markets but also paves the way for new use cases and geographic expansion. Berbix brings with it a diverse customer base, including industries such as dating sites, alcohol delivery, virtual healthcare, and ridesharing. Document verification plays a critical role in onboarding processes for these sectors, ensuring compliance and protecting users from potential risks. Additionally, Socure’s own customer base has showcased groundbreaking use cases, such as using document verification in physical branches to eliminate human error and improve efficiency.

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The integration of Berbix’s global coverage capabilities further propels Socure’s expansion into new markets. Socure can cater to businesses looking to expand globally. The need for document verification is prevalent worldwide, and Socure is well-positioned to meet the demands of customers seeking to onboard users in different countries and regions.

Integrated Identity Platform

Socure’s acquisition of Berbix not only enhances document verification capabilities but also strengthens its position as a comprehensive identity platform. By combining document verification with other solutions such as device, behavioral biometrics, email/phone risk, synthetic and ID fraud detection, KYC, AML, and bank account validation, Socure offers a unified approach to identity security. The flexibility and orchestration provided by the Socure ID+ platform empower businesses to create seamless workflows tailored to their specific needs, while benefiting from best-in-class solutions across all aspects of identity verification and risk assessment.

Eliminating Identity Fraud

By offering a comprehensive identity platform and combining document verification with other solutions, Socure provides businesses with a holistic approach to identity security and risk assessment. With a talented team united by a shared vision, Socure is poised to lead the way in identity verification, helping businesses thrive in an increasingly digital and interconnected world.

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As Socure continues its journey of growth and innovation, the acquisition of Berbix marks a significant milestone that sets the stage for a future where identity security is fortified, fraud is prevented, and businesses and consumers can trust in the integrity of digital transactions.