iDenfy, a global RegTech startup offering AI-based identity verification and fraud prevention tools, announced a new partnership with CardDepot.com, a digital gift card platform offering special discounts for budget-conscious shoppers. iDenfy's identity verification solution will make the checkout process quick and secure, effectively stopping individuals with malicious intent from engaging in fraudulent activities on the gift card platform.

According to recent data from Riskified, in the US alone, the gift card industry reached a value of $313.4 billion last year, and experts predict that the global gift card market will grow to $1.4 trillion by the year 2026. Despite many advantages, such as fostering customer loyalty and boosting revenue, these cards also bring along potential dangers. iDenfy claims that malicious individuals take advantage of gift cards due to their susceptibility to manipulation. While this exploitation can occur in offline scenarios, such as scammers stealing gift card numbers from physical stores, it’s increasingly shifting to the digital realm.

CardDepot.com understands the increasing risks of eGift card fraud. According to the company, when comparing gift cards to credit cards or bank accounts, the general industry’s level of protection is lower, as frequently there are no authentication barriers in place. However, the company wanted to stand out in the marketplace and add an extra layer of security. Additionally, similar to other fraudulent schemes, CardDepot.com aimed to minimize the chances of gift card fraud and prevent several consequences, such as financial losses, inventory depletion, and harm to the brand’s reputation. 

With the new partnership, the company's goal was to prevent these risks by implementing effective precautions. It became evident that identity verification served as the foundational step in constructing a strong fraud prevention system. For this reason, CardDepot.com implemented iDenfy’s Know Your Customer (KYC) solution. From now on, this integration will help verify all customers purchasing gift cards on the platform with four simple steps.

iDenfy's AI-powered identity verification software swiftly identifies the document type and country, extracting the customer's personal information within seconds. According to the KYC company, this feature is particularly crucial during the onboarding of new customers who have not yet made any purchases on the platform, as this is when the risk of fraud is considered to be at its highest. iDenfy’s biometric and face recognition technologies verify users’ faces, effectively blocking the use of fake pictures, 3D masks, and other fraudulent representations during the verification process. 

By implementing iDenfy’s automated identity verification solution, CardDepot.com will reduce the risk of fraudulent activities, such as stolen credit cards or fake identities being used to purchase gift cards on their platform. The CardDepot.com team hopes this will result in lower chargeback rates and financial losses, ultimately protecting their revenue and reputation. Partnering with iDenfy will enhance the customer onboarding process for CardDepot.com. With quick and efficient identity verification, CardDepot.com will provide a seamless experience for legitimate customers, reducing friction during the registration and purchasing processes.

iDenfy asserts that it achieves comprehensive fraud prevention through its unique KYC approach in the market. In addition to the AI software, iDenfy's in-house team of KYC experts diligently reviews verification results in real-time, ensuring high accuracy. It's important to note that iDenfy's identity verification software and its related features fully comply with GDPR, CCPA, and all the latest data protection laws. This compliance is certified by the ISO-27001 information security management system certification.

“Our team's commitment is to deliver outstanding value to our customers by not only providing them with unbeatable discounts but also safeguarding their transactions and data with the highest level of security. With iDenfy's expertise, we're determined to set a new standard in the industry, ensuring our customers enjoy a worry-free and rewarding experience,” — said Fred Doctorovich, the CEO of CardDepot.com.

Domantas Ciulde, the CEO of iDenfy, added: “In the evolving digital landscape, the only way to actually safeguard your customers from fraud is to build a multi-layer security system. That’s exactly what CardDepot.com achieved by integrating our identity verification.”