53% of In-House Identity Teams Report KYA Incidents or Losses

AI summary of the source article

A joint study by PYMNTS Intelligence and Trulioo examining 350 risk and compliance leaders found that 53% of organizations keeping digital identity verification in-house suffer Know-Your-Agent (KYA) incidents or losses. In-house teams heavily rely on manual reviews, with 61.4% reporting missed opportunities from onboarding abandonment. Conversely, externally managed programs report a lower incident rate of 24.1%, but 82.8% report inconsistent technology results and 81% report hampered market expansion. Hybrid models cut KYA incidents to 28.8% but experience the highest exposure to credential stuffing and account takeovers at 73.1%, illustrating distinct operational trade-offs across all approaches.

Why it matters

The choice of identity verification operating model directly affects bot vulnerability, customer onboarding friction, and an enterprise's ability to expand into new geographic markets.

Key facts

• 53% of in-house identity verification teams report KYA-related incidents or losses, compared to 28.8% for hybrid and 24.1% for external models.
• 89.5% of surveyed organizations cite managing bot traffic as a challenge, and 52.3% experienced an increase in bot traffic over the prior year.
• 61.4% of internally managed verification programs report missed business opportunities due to onboarding friction and user abandonment.