Lithuania-based iDenfy, a company specializing in identity verification and fraud prevention, has teamed up with Hetzner, a Germany-based cloud and hosting infrastructure provider, to streamline customer onboarding through automated Know Your Customer (KYC) verification.
Founded in 1997, Hetzner offers dedicated servers, cloud instances, internet storage, and managed hosting services globally. This integration of iDenfy’s identity verification solution transforms the once-manual registration process into an automated flow aimed at enhancing completion rates and simplifying onboarding.
Verification Features and Hosting Industry Context
iDenfy’s system requires users to present a government-issued ID and complete a biometric selfie check. It performs facial feature analysis, three-dimensional liveness detection to verify the user’s physical presence, and document authenticity checks against an extensive database covering over 3,000 authorized document types from more than 200 countries and territories. The company claims an accuracy rate of 99.8% for KYC verification processes that are efficient for legitimate users. Suspicious cases are escalated to compliance experts for manual review, blending AI automation with human oversight.
Identity verification has become a critical regulatory requirement in the hosting sector due to the risks posed by fraudulent account holders who can misuse infrastructure for malicious activities such as distributing malware, launching phishing campaigns, or conducting distributed denial-of-service attacks. These actions can blacklist IP addresses, compromise service availability, and harm providers’ reputations with genuine clients. The Federal Trade Commission reported over 2.6 million fraud-related cases in 2024 with total losses exceeding USD 12.7 billion, highlighting the growing challenge of synthetic identities used by cybercriminals to bypass traditional manual screening methods.
iDenfy’s pricing structure charges only for approved verifications, excluding rejected ones to offer clients predictable costs. Commenting on this partnership, Domantas Ciulde, CEO of iDenfy, noted that hosting infrastructure companies are pivotal in the digital economy and emphasized the importance of identity verification at entry points to prevent fraudulent onboarding while ensuring efficiency, scalability, and user-friendliness.
