Fraud is accelerating. Identity verification fraud has more than doubled in just three years, rising from 1.1 percent in 2021 to 2.6 percent in 2024. Synthetic identity fraud in North America alone jumped 311 percent year over year from Q1 2024 to Q1 2025. For compliance teams, that’s not just a statistic — it’s an operational reality.
Regulators, financial institutions, and consumers alike demand certainty in identity verification, especially when it comes to financial products. Without a strong Know Your Customer (KYC) program, organizations face money laundering, terrorist financing, fraud expense and reputational damage. According to McKinsey, the global payments industry processed 3.4 trillion transactions totaling $1.8 quadrillion in value in 2023, underscoring the need for robust customer due diligence.
AI has transformed KYC, dramatically improving the speed of verification and monitoring. But AI alone isn’t enough. True customer understanding requires the combination of AI efficiency and human expertise. The strongest compliance outcomes come when AI’s speed and scale work hand-in-hand with human judgment.
AI-driven fraud detection
AI is a game-changer in customer identification, automating repetitive tasks and spotting anomalies that humans might miss. It acts as an always-on overseer across vast account-opening and transaction flows. At Alviere, we partner with Hawk for its AI solution, excelling at pattern recognition, anomaly detection, and 24/7 monitoring, generating alerts when rules are violated or thresholds are exceeded.
These alerts are then routed to our internal compliance teams. At that point, an AI agent developed by our partner Sphinx reviews and closes alerts, applying Alviere compliance policies. This agentic AI reduces false positives, preserving human attention for the most complex cases that demand contextual understanding.
Speed meets certainty: The AI + human advantage
The result is the best of both worlds: AI manages millions of customer verifications and monitoring tasks at speed, while human analysts bring intuition, regulatory knowledge, and contextual insight. Striking the right balance ensures faster customer onboarding, ongoing due diligence, and effective risk classification — without locking out legitimate customers.
- Hawk’s AI surveillance technology instantly scans and monitors massive transaction volumes, identifying anomalies for intervention.
- Sphinx’s agentic AI closes false positives and escalates potentially true alerts to Alviere’s internal compliance teams.
- Human experts apply regulatory frameworks, program knowledge, and creative problem-solving.
Together, they create continuous learning loops to improve KYC accuracy and adapt to evolving risks.
Comprehensive fraud detection & prevention
Strong KYC isn’t just about compliance, it’s about building trust. Faster identity verification and ongoing monitoring strengthen defenses without frustrating legitimate customers. With fewer false positives, compliance teams spend less time on repetitive reviews and more time on nuanced cases, feeding insights back into AI models.
Financial crime isn’t slowing, and neither is regulatory scrutiny. Building effective defenses requires AI-assisted monitoring, AI-agentic case triage, and expert compliance teams working together. For program owners, the most important benefit is ensuring consumer trust and confidence by demonstrating that their financial products are safe, compliant, and resilient.
