Fight against fraud in the digital age: Insights from Web Summit Rio 2025

At Web Summit Rio 2025, Veriff’s CEO Kaarel Kotkas emerged as a leading voice in the global fight against fraud, delivering keynote insights on both the Centre Stage panel “Scamdemic: Fintechs Fight Against Fraud” and a fireside chat “Can We Trust a Fully Digital Government?”.

The timing couldn’t have been more strategic—Veriff also announced the opening of its new hub in São Paulo, investing over R$17 million (~$3M USD) to expand in Latin America. As reported by Canal Executivo, Noticias Agora, and Startups BR, this move strengthens Veriff’s regional presence, reinforcing its mission to deliver secure, scalable identity verification and fraud prevention solutions tailored to the complexities of the LatAm financial services ecosystem.

The first panel, led by moderator Kimberley Waldron, included valuable perspectives from Kaarel Kotkas (CEO of Veriff), Lucas Vargas (CEO of Nomad), and Rodrigo Tognini (CEO of Conta Simples). In contrast, the second session a Fireside Chat titled “Can We Trust a Fully Digital Government?” featured a conversation between our own Kaarel Kotkas and Brittany Kaiser, widely recognized as a whistleblower of the Cambridge Analytica case, formed into a documentary The Great Hack by Netflix. Together, they examined the complexities and opportunities surrounding data ownership, digital identity, and the growing influence of technology in modern governance.

As fraud grows smarter and more sophisticated across Latin America, this blog explores how Veriff is helping financial institutions stay ahead with AI-native, multi-layered identity verification, strategic regional expansion, and a culture of collaboration. Let´s dive in.

Fraud is evolving and so must financial institutions

Fraud is always evolving and becoming more complex, especially in financial institutions, where fraudulent transactions and identity theft are on the rise. During the “Scamdemic” panel, Kaarel warned:

“The identity verification and fraud prevention approach that was fit yesterday, ain't fit tomorrow. Fraudsters are fast, and they’re scaling up with access to powerful tools like AI.”

In Brazil, where biometric databases have been compromised, relying solely on government-issued data is no longer viable. Veriff addresses this by deploying a multithreaded IDV system that incorporates liveness checks, behavioral analysis, device fingerprinting, and 1,000+ data points per verification session to ensure real identities are verified — and fraud losses are minimized.

São Paulo opening: a strategic leap into Latin America

With Brazil at the epicenter of digital transformation, Veriff’s investment in the region marks a pivotal moment. According to Valor Agregado, the São Paulo hub is Veriff’s launchpad for further LatAm expansion.

“We’re at an inflection point in LatAm,” Kaarel noted. “Digital growth is accelerating, but so is fraud. Our goal is to bring accurate, secure, and seamless IDV experiences that help financial service providers grow responsibly.”

From digital wallets to the explosive rise of Pix (Brazil’s instant payment platform), the region’s tech evolution demands agile and adaptive fraud detection tools. Including IDV early in the payment flow – before transaction finalization – has proven effective in reducing fraud.

The alarming scale of fraud in Brazil

Veriff’s Brazil Fraud Industry Pulse Survey 2025 reveals a troubling picture:

• 30% of Brazilian companies report over 11% of their IDV sessions are fraudulent.
• 70% of experts observed a year-over-year spike in online fraud.
• 69% saw increased use of AI by fraudsters.
• 79.5% say customers demand stronger fraud protection measures.
  
  Consumers agree: 91% want ID and selfie verification, and 85% believe facial recognition is more secure than passwords. This landscape requires not just tools, but education, strategy, and collaboration.

 Why AI is crucial but needs guardrails

AI and machine learning (ML) have revolutionized identity verification. At Veriff, these technologies enable real-time decisions, detect deepfakes, and analyze data across massive device networks. But over-reliance on AI is risky.

“Self-supervision isn’t enough. AI still needs a human in the loop,” Kaarel said. “We must keep user well-being and ethics at the center.”

Veriff’s hybrid model pairs automated decision-making with human oversight to avoid false positives and reduce customer churn. This approach ensures that contact information, biometric data, and document verifications are processed with maximum accuracy and minimal friction.

Building a multi-layer fraud prevention ecosystem

To truly combat fraud, Veriff advocates a holistic approach—combining video-based authentication, device integrity checks, and facial biometrics into one streamlined experience. Here’s how Veriff stands apart in the LatAm market:

• Video-first verification: Harder to spoof than selfies, more effective in validating real users.
• Device network analysis: Tracks suspicious behavior patterns to catch synthetic identities.
• Compliance-readiness: Supports businesses in staying ahead of rapidly changing regional regulations.
• Comprehensive document and Identity Verification: 12,000+ government-issued document types supported across 230+ jurisdictions, enabling cross-border expansion.
  For financial institutions struggling with false declines, Veriff’s solution streamlines onboarding by gathering just enough information to be secure—without overburdening the user. This detection and prevention method lets good customers in, and fraudsters out.

The role of education and collaboration

Social engineering scams have surged post-pandemic. Panelists agreed: fintechs must do more to educate users and protect their accounts.

“This isn’t just about technology,” Kaarel emphasized. “It’s about culture. We need shared responsibility, collaborative ecosystems, and fraud prevention strategies tailored to the user base.”

Veriff’s 2025 Identity Fraud Report found that in 1 in 20 verification attempts, someone tried impersonating someone else. The majority of these attacks targeted financial services, with impersonation fraud leading at 77%.

Final word: Trust begins with verification

In a world built on digital trust, fintechs, governments, and consumers all face the same three questions:

• Is this person really who they claim to be?
• Is this person trusted?
• Is this still the same person behind the account?

The answer begins with a powerful, layered identity verification system. As Veriff expands its LatAm footprint, it’s setting a new standard in the fight against fraud—helping organizations reduce risk, comply with evolving regulations, and build trust in every transaction.

“If you want trust,” Kaarel said, “you need to verify.”