FXCM taps AU10TIX for client onboarding: Approval rates up from 62% to 80%

“Partnering with AU10TIX has been instrumental in surpassing our objectives for customer conversion, security enhancement, and reducing fraudulent accounts. By automating our validation processes, we’ve not only enhanced security but also improved the onboarding experience for our customers.”

Stratos Group, the company operating the online foreign exchange and CFD trading brands FXCM and Tradu, has partnered with identity verification technology company, AU10TIX, to enhance its KYC capabilities.

According to the RegTech firm, the collaboration has resulted in a 29% increase in ID document approval rates on the FXCM platform since going live.

With the integration of AU10TIX’s Identity Verification Suite, Web SDK, and biometric solutions, FXCM has successfully automated its KYC document verification processes, reducing onboarding times dramatically from hours or even days to mere seconds.

AU10TIX highlighted that its advanced algorithms and security databases have improved document approval rates from 62% to 80%, reducing abandonment rates and opening up new avenues for revenue growth.

“Robust security protocols and frictionless user journey”

Teodora Mladenova, eKYC Product manager at FXCM, said: “At FXCM, ensuring a seamless and secure onboarding experience for our customers is a top priority. Partnering with AU10TIX has been instrumental in surpassing our objectives for customer conversion, security enhancement, and reducing fraudulent accounts. By automating our validation processes, we’ve not only enhanced security but also improved the onboarding experience for our customers.”

Dan Yerushalmi, CEO of AU10TIX, commented: “Our tailored identity verification solutions address the distinct challenges faced by industry leaders such as FXCM, guaranteeing not just robust security protocols but also a frictionless user journey. We’re proud to support FXCM in its mission to enhance security, streamline processes, and drive sustained success in the global FX trading market.”

Established in 2002, AU10TIX offers a 100% automated global identity management system capable of detecting organized mass attacks through traffic pattern analysis and cross-checking data across a consortium of major companies.

FXCM is one of the world’s most recognized brands within the FX/CFD brokerage industry and offers a range of services including mobile trading, one-click order execution, and educational resources.

AU10TIX launched a KYB solution

Earlier this year, AU10TIX launched a Know Your Business (KYB) solution designed to help companies understand with whom they are conducting business, thereby avoiding potential financial and reputational damage.

The solution integrates KYB with Know Your Customer (KYC) processes, catering to a broad spectrum of business needs, from sole traders to large corporates, including KYC for Ultimate Beneficial Owners (UBOs) and related entities.

With increasing regulatory requirements, businesses across various sectors are compelled to gather and examine more data on the identities of their partners and vendors. This is essential to avoid associations with entities involved in identity theft, fraud, money laundering, terrorist financing, or other illicit activities.

The challenge has been that existing KYB solutions offer limited coverage, necessitating companies to work with multiple vendors for comprehensive KYC, forgery tests, and fraud detection capabilities.

AU10TIX’s unified solution offers a comprehensive check against more than 200 jurisdictions and over 1,000 government registries through one automated workflow, delivering results within seconds — a significant improvement over other vendors that may take days and use potentially outdated databases. This solution also offers full profiling and continuous monitoring for compliance and risk management.

The KYB solution is available in three packages: Business Validation, Sole Trader Verification, and Enterprise Verification, each offering a range of features from basic business validation to in-depth KYC risk assessment, AML screening, and continuous monitoring for real-time compliance and risk management.

Benefits of the solution include a fully automated KYB and KYC process, advanced document verification through AI technology, a case management dashboard for managing check results, a comprehensive scoring mechanism for risk measurement, a single API call for both business and individual verification to reduce costs, and global coverage providing insights into ownership structures across more than 200 countries.

AU10TIX’s ID fraud report revelations

In late 2023, the Israeli-based identity verification technology company released its Q3 2023 Global Identity Fraud Report which revealed significant shifts in organized identity fraud patterns. The most striking trend is the 56% increase in fraud within the digital payments sector, contrasted by a 51% decline in cryptocurrency-related fraud.

This shift is attributed to the impending implementation of the EU Market in Crypto-Assets (MiCA) regulation, set to revolutionize the European Union’s cryptocurrency landscape in 2024.

Although primarily targeting the EU, the regulation’s influence has led to a global uptick in stricter KYC (Know Your Customer) guidelines, particularly in the crypto sector. This has made it increasingly challenging for professional fraud rings to operate in the cryptocurrency space, prompting a shift of their activities to the less regulated payments sector.

The report indicates that the payments sector was the primary target of organized fraud groups in Q3 2023, accounting for 51% of all financial fraud attacks, a significant rise from 32% in Q2. In contrast, the crypto sector’s share of attacks dropped to 23% from 47% in the previous quarter.

North America experienced the highest volume of attacks in the payment sector, attributed to the region’s economic recovery and increased spending. The Asia-Pacific region, due to its complex digital transaction environment involving cross-border payments, was the second most targeted.

Interestingly, AU10TIX’s analysis found that fraud involving selfie capture represented less than 5% of attacks across all regions, indicating the effectiveness of this verification method.