IDV Article
The future of mobility and the gig economy: Battling the rising tide of online fraud
The mobility and gig economy sectors offer flexibility and convenience but face rising fraud risks. Veriff’s latest report reveals a 21% surge in fraud, highlighting the financial impact on businesses. Learn how AI-driven identity verification is protecting these industries.
The mobility and gig economy sectors are revolutionizing the way we work and move, offering flexibility and convenience to millions of workers and consumers worldwide. From ride-hailing apps to food delivery services, these industries have created scalable, adaptable business models that thrive on the flexibility of the gig economy. However, this flexibility has also made them prime targets for fraudsters.
In Veriff’s latest report, Fraud Platform Lead, Ira Bondar sheds light on the evolving challenges of online fraud in these sectors, and how technology, particularly AI-driven identity verification (IDV), is paving the way for a safer future.
The growing fraud threat
Fraud in the mobility and gig economy is on the rise, with Veriff’s 2025 Fraud Report revealing a 21% increase in fraudulent activities compared to the previous year. Alarmingly, over 90% of fraud in this sector is impersonation fraud, where bad actors use stolen or fake identities to exploit platforms. This is significantly higher than the 82% average across other industries.
The financial impact is staggering. In the U.S. alone, 35% of respondents to Veriff’s Fraud Index 2024 reported financial losses due to fraud, with some organizations losing up to 20% of their annual revenue. This “fraud tax” is unsustainable and underscores the urgent need for robust fraud prevention measures.
As companies in the gig economy expand their businesses, it’s clear how losing even a small percentage of their revenues to fraudsters could have a serious impact.
Unique challenges for mobility and gig economy platforms
The gig economy’s reliance on self-employed workers and flexible working models creates unique vulnerabilities.
Key fraud tactics include:
- Identity fraud: Fake or stolen identities are used to access services or exploit promotions.
- Money laundering: Mobility platforms are misused to transfer illicit funds.
- Bonus/Offer abuse: Fraudsters create fake accounts to illegitimately claim incentives.
- Cyber threats: Data breaches, account takeovers, and ransomware attacks disrupt services and compromise user data.
Governments are taking notice. For example, the UK now mandates that gig economy companies verify workers’ eligibility to work, with severe penalties for non-compliance. This regulatory shift highlights the critical role of IDV in ensuring both legal compliance and operational security.
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The role of AI in fraud prevention
AI is emerging as a game-changer in the fight against fraud. According to Veriff’s Fraud Industry Pulse Survey 2025, 64% of U.S. fraud professionals already use AI and machine learning in fraud prevention, with another 20% planning to adopt these technologies within the next year.
AI-powered IDV solutions offer several advantages:
- Real-time fraud detection: AI analyzes vast amounts of data to identify patterns and anomalies, flagging potential fraud before it occurs.
- Biometric Authentication: Facial recognition and liveness checks ensure users are who they claim to be.
- Cross-linking capabilities: By connecting data points across multiple sessions and platforms, AI can identify fraudsters who reuse credentials or tactics.
These technologies not only enhance security but also streamline the user experience, building trust and boosting reputations.
Case study: Bolt’s success with AI-driven IDV
Bolt, a leading European mobility platform, exemplifies the power of AI-driven IDV. With over 100 million customers across 45 countries, Bolt needed a robust solution to verify driver documentation quickly and accurately. Veriff’s AI-based IDV system enabled Bolt to:
- Verify driver licenses in seconds.
- Detect and prevent fraudulent activity.
- Ensure compliance with local regulations.
The result? A safer, more reliable service for customers, drivers, and pedestrians alike.
What the future holds
As fraudsters adopt advanced technologies like AI and deepfakes, the need for sophisticated fraud prevention tools becomes even more critical. Veriff is at the forefront of this battle, offering multi-layered solutions that combine AI, machine learning, and human expertise to stay ahead of emerging threats.
Key strategies include:
- Face liveness checks: Algorithms detect subtle facial movements to confirm a user’s presence.
- Document verification: Machine learning analyzes documents for signs of manipulation.
- Cross-industry insights: Veriff’s CrossLinks technology identifies fraud patterns across industries, stopping fraudsters who reuse tactics.
By embracing these innovations, mobility and gig economy companies can protect their platforms, comply with regulations, and maintain customer trust.
Conclusion
The mobility and gig economy sectors are poised for continued growth, but their success hinges on addressing the rising threat of fraud. AI-driven IDV solutions offer a powerful defense, enabling companies to safeguard their operations while delivering seamless experiences for users.
As Ira Bondar aptly puts it, “Robust IDV isn’t a nice-to-have anymore – it’s essential.” By investing in advanced fraud prevention technologies, businesses can not only protect themselves but also lay the foundation for a secure and prosperous future.
