Why digital ID verification is now critical for due diligence – VSiD
Rising fraud levels mean higher expectations for client due diligence
Fraud continues to pose a significant threat to businesses and individuals across the UK, with identity fraud remaining the most prevalent form of financial crime.
According to Cifas’ 2026 Fraudscape Report, more than 444,000 cases were filed to the National Fraud Database during 2025. This represents a record number of cases and a 6% increase on the previous year, continuing the upward trend seen in 2024. Most notably, identity fraud accounted for 54% of all filings, making it the single largest category of reported fraud.
For professional services firms, including solicitors, accountants, tax advisers and financial professionals, these figures highlight the growing importance of robust client due diligence (CDD) processes and effective digital ID verification measures.
Why regulators are encouraging using a DVS for digital identity verification
The UK Government is working closely with regulators such as the Solicitors Regulation Authority (SRA) and the Financial Conduct Authority (FCA) to strengthen fraud prevention measures across regulated sectors.
As part of this approach, firms are increasingly being encouraged to adopt digital identity verification solutions that meet recognised government standards. In particular, organisations should consider using a Digital Verification Service (DVS) that appears on the Gov.uk register.
The objective is clear: improve the quality of customer due diligence, reduce the risk of identity fraud, and enhance protection for both businesses and consumers.
What makes a certified Digital Verification Service different?
Not all identity verification providers are created equal.
A Digital Verification Service certified against the UK Digital Identity and Attributes Trust Framework has undergone rigorous independent assessment to demonstrate that its technical, organisational and physical controls meet stringent government standards.
This certification provides assurance that the provider:
• Operates to ISO 27001 information security standards.
• Maintains a robust quality management system.
• Protects personal data throughout the verification process.
• Delivers accessible and non-discriminatory services.
• Monitors, detects and reports suspected or actual fraud.
• Follows strict governance and compliance procedures.
For regulated firms, working with a certified DVS offers greater confidence that client identity checks are being conducted using trusted and secure technology.
Fighting modern fraud requires modern technology
The rapid evolution of artificial intelligence has provided fraudsters with increasingly sophisticated tools to create convincing fake identities and forged documents.
Traditional manual verification methods are often no longer sufficient to detect today’s fraud techniques.
Modern digital ID verification technology can incorporate advanced capabilities such as:
• Anti-spoofing protection.
• Anti-tamper document analysis.
• 3D liveness detection.
• Verification of genuine identity documents.
• Detection of photocopied or manipulated documents.
• Checks against known fraudulent phone numbers and email addresses.
• Identification of stolen, revoked or compromised identity documents.
• Alerts linked to fraud intelligence databases.
• FCA approved bank ownership verification
These capabilities enable firms to identify potential risks quickly while maintaining a smooth onboarding experience for legitimate clients.
The future of client onboarding is digital
Remote identity verification technology has advanced significantly in recent years, allowing firms to complete compliant customer due diligence checks without requiring face-to-face meetings.
At the same time, the rollout of the Gov.uk Wallet, following the passage of the Data (Use and Access) Act 2025, is expected to accelerate the adoption of digital identity credentials across both the public and private sectors.
As digital identities become more widely used, professional services firms will need technology capable of reading, validating and verifying these credentials as part of their onboarding and compliance workflows.
Why now is the time to review your due diligence processes
With identity fraud continuing to rise and regulatory scrutiny increasing, firms can no longer afford to rely solely on traditional verification methods.
Integrating certified Digital Verification Service checks into your client onboarding, KYC and AML processes can help:
• Strengthen compliance procedures.
• Reduce exposure to identity fraud.
• Improve customer experience.
• Increase operational efficiency.
• Future-proof your business against evolving regulatory requirements.
Firms that embrace trusted digital identity technology today will be better positioned to meet tomorrow’s compliance challenges, especially with the deployment of secure and reliable re-verification techniques.
Future-proof your compliance strategy
VSiD Verify is a leading digital onboarding specialist, providing eSignature, KYC and AML solutions with integrated fraud detection and document automation capabilities. As a provider listed on the Gov.uk Digital Verification Services (DVS) register, VSiD Verify helps professional services firms implement secure, compliant and efficient identity verification processes.
To learn how digital ID verification can strengthen your client due diligence procedures and protect your firm from rising fraud risks, contact VSiD Verify on 0333 335 5176 or complete our online contact form
