iDenfy has introduced an automated identity verification solution specifically for Shopify users. This app is designed to activate identity checks on orders flagged as high-risk by the platform’s internal systems, thereby minimizing fraud and chargebacks.
This integration provides an additional layer of security by automatically verifying customer identities when Shopify deems orders as medium-risk or higher. It aims to protect businesses from fraudulent activities without disrupting legitimate transactions.
E-commerce fraud remains a significant challenge for online retailers. In 2024, global losses from such fraud were estimated at USD 44 billion, with various methods including chargebacks, stolen credit card information, synthetic identities, and account takeovers being commonly employed by cybercriminals. Despite Shopify’s risk analysis tools that consider factors like address mismatches or irregular purchasing behavior, the system lacks automatic verification capabilities, leaving final decisions to merchants.
Verification and Compliance Features
iDenfy’s solution converts risk signals into actionable steps. When an order is marked as suspicious, the app guides buyers through a verification process using iDenfy’s knowledge of customer identity and compliance features. Merchants can customize when this verification occurs based on several factors such as the risk level of the order, specific products or collections involved, the IP address location of the buyer, or their behavior on the landing page.
The verification process leverages iDenfy’s extensive identity document recognition system, capable of validating more than 3,000 types of documents from over 200 countries. This includes passports, ID cards, driver’s licenses, and residency permits using advanced biometric technologies like face recognition and liveness detection.
iDenfy offers a suite of services for AML, KYC, and KYB compliance. Recognized as a leading provider by G2 in their Winter 2025 report, the company ensures robust identity verification to support anti-money laundering efforts.
