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

New data reveals that businesses managing identity verification in-house are twice as likely to suffer fraud losses compared to those using external experts.

Curated by Financing Your Way from original reporting by PYMNTS. Summary is AI-assisted and editorially reviewed — see our editorial standards.

FYWBy Financing Your Way EditorialOctober 1, 2026

If you are managing your own digital identity verification and fraud prevention systems, your business is statistically twice as likely to suffer financial losses from bots and fraudulent agents. New data shows that 53% of companies using strictly in-house identity teams reported significant incidents. In contrast, businesses that use third-party providers or a hybrid model saw incident rates drop to around 24%. For retailers and operators offering consumer financing, this is a major warning sign. Fraudsters are increasingly using sophisticated bots to mimic real customers during the financing application process. When these 'agents' slip through, it leads to chargebacks, identity theft claims, and direct hits to your bottom line. The data suggests that internal IT teams often lack the specialized tools to keep up with these rapidly evolving adversarial threats. Moving to a specialized external identity provider doesn't just save time; it acts as a primary defense against automated attacks that are specifically designed to bypass standard business security.

Source: PYMNTS

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