Close Menu
    Latest Posts

    Automakers urge Congress to quickly ban Chinese vehicles in U.S.

    September 4, 2026

    Suspicious Activity Reporting: Joint Statement on Suspicious Activity Report Confidentiality Considerations Regarding Communications with Customers

    September 4, 2026

    Monad’s mainnet upgrade makes storing data together 98% cheaper

    September 4, 2026
    Facebook X (Twitter) Instagram
    Trending
    • Automakers urge Congress to quickly ban Chinese vehicles in U.S.
    • Suspicious Activity Reporting: Joint Statement on Suspicious Activity Report Confidentiality Considerations Regarding Communications with Customers
    • Monad’s mainnet upgrade makes storing data together 98% cheaper
    • Adobe just announced its next CEO. Here’s why its stock is dropping.
    • Shufti’s Shahid Hanif on Onboarding Friction and AI Fraud
    • ‘I currently give him $1,000 a month’: My grandson has severe mental illness. How do I protect him after I’m gone?
    • Snowflake has a secret weapon that’s powering its stock toward a huge gain
    • OpenAI hails ‘new era of artificial general intelligence’ with Astra model release | AI (artificial intelligence)
    Facebook X (Twitter) Instagram
    MoneyLister – Smart Investing & Financial NewsMoneyLister – Smart Investing & Financial News
    Friday, September 4
    • Home
    • Banking
    • Business
    • Crypto
    • Economy
    • Fintech
    • Investing
    • Markets
    • Stocks
    MoneyLister – Smart Investing & Financial NewsMoneyLister – Smart Investing & Financial News
    Home»Fintech»Shufti’s Shahid Hanif on Onboarding Friction and AI Fraud
    Fintech

    Shufti’s Shahid Hanif on Onboarding Friction and AI Fraud

    AdminBy AdminSeptember 4, 2026No Comments4 Mins Read
    Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
    Shufti's Shahid Hanif on Onboarding Friction and AI Fraud
    Share
    Facebook Twitter Pinterest Email Copy Link

    Research by identity verification provider Shufti found that 47 per cent of users abandon digital onboarding when verification becomes too lengthy or cumbersome. For Shahid Hanif, the company’s chief executive and co-founder, that number is the clearest symptom of what he calls the friction paradox: the conflict between a user’s demand for a near-instant experience and an institution’s need for forensic security.

    Shahid Hanif, CEO and co-founder of Shufti

    Hanif told The Fintech Times why the friction has proved so difficult to fix, and why he believes AI-generated identities are exposing the limits of traditional document-based verification.

    Much of the friction, Hanif says, comes from onboarding fatigue. “Legitimate users are still being forced into manual document hunts for things like physical utility bills, or rejected by rigid systems that lack the fuzzy matching needed to forgive something as simple as a typo.” Solving it has become harder because verification is no longer only about documents. “We are in a forensic war against the industrialisation of fraud,” he said, and the extra checks that war demands introduce complexity that older, speed-optimised systems cannot manage.

    The scale of that war is set out in Shufti’s own projections: the company expects AI-powered identity fraud to increase by 495 per cent by the end of 2026, and document deepfakes to surge by 3,900 per cent. “The 495 per cent surge represents more than just a rise in volume. It signals the industrialisation of the synthetic persona,” Hanif said. In practice the company is seeing document deepfakes and identities generated by adversarial networks, alongside field manipulation, copy-move edits and simulated holograms that legacy optical character recognition systems were never built to detect.

    More concerning still, he says, is the rise of digital stream injection and screen-sharing liveness hacks. “These methods allow bad actors to bypass the physical camera and inject pre-recorded synthetic video directly into the verification flow.” Shufti’s answer is to look for what Hanif calls invisible signals, using techniques such as 3D mesh reconstruction and skin texture analysis to distinguish real human skin from AI-generated imagery.

    The consequence, Hanif argues, is that businesses can no longer choose between robust fraud prevention and a seamless customer experience: the industrialisation of AI-driven crime has turned speed-optimised legacy systems into backdoors for synthetic identities, while cumbersome journeys drive legitimate users away. “Asking users to go on a manual document hunt during a high-stakes moment, such as a market bull run, can quickly push them toward a competitor.”

    AI-generated identities are exposing structural weaknesses in the document-first model itself. “AI-generated identities are making traditional document verification increasingly obsolete by separating digital trust from physical reality,” Hanif said. Older systems designed for data extraction and text readability can approve a sophisticated deepfake simply because

    the layout is correct and the fields are readable. Synthetic personas that pass a weak, point- in-time check at onboarding can then lie dormant in corporate databases, a pattern Hanif calls sleeper fraud, creating liabilities the original systems were never designed to detect.

    Europe’s expanding digital identity ecosystem, anchored by eIDAS 2.0 and the upcoming EUDI Wallet, represents for Hanif a major shift toward the document-free future needed to resolve the paradox. By moving from static image capture to secure cryptographic handshakes, verified attributes such as legal name, age and address can be pulled directly from authoritative registries through trusted schemes like BankID, MitID or DIIA; Shufti estimates the approach can reduce user drop-offs by up to 30 per cent. “Reducing friction does not have to mean reducing security,” he said, since assurance comes from government- vetted credentials rather than physical document templates.

    So what should organisations do now? Hanif’s first step is an audit of existing customer portfolios to uncover “synthetic identities that may have passed through legacy OCR systems between 2020 and 2023”. Next, move beyond basic image checks toward what he calls forensic presence, using certified passive liveness detection and 3D biometrics to confirm a real person is present; he points to a zero-failure result Shufti claims in the US Department of Homeland Security’s RIVR 2025 benchmark. The final piece is making verification easier for legitimate users, with government-backed digital wallets and fast biometric re-authentication. “Businesses need to give users the speed they expect without compromising the security required in the AI era.”

    • Rowen Brooks is an AI staff writer at Disrupts Media, the publisher of The Fintech Times, The Biotech Times, The Datatech Times and Disrupts. She reports across all four titles, covering financial technology, biotechnology, data and the wider field of emerging technology. Her work spans news, interviews, commentary round-ups and explainers, with a focus on how new technology is built, funded and adopted, and what it means for the businesses and people using it. She can be reached at [email protected].

      View all posts


      Staff Writer

    Fraud Friction Hanif Onboarding Shahid Shuftis
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
    Admin
    • Website

    Related Posts

    Fintech

    BitGo Opens New Singapore Office After Tripling APAC Client Base

    September 3, 2026
    Fintech

    Supreme Court lets Trump build White House ballroom as lawsuit continues

    September 1, 2026
    Fintech

    ADFW 2026 Returns to Abu Dhabi in December under partnership theme

    August 31, 2026
    Fintech

    Russia intensifies Donetsk attacks as Ukraine backs EU asset push

    August 28, 2026
    Fintech

    Tonga: When Remittances Become Financial Infrastructure

    August 27, 2026
    Fintech

    Revolut Debuts Euro Stablecoin EURR in Denmark, Poland and Portugal

    August 26, 2026
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    Automakers urge Congress to quickly ban Chinese vehicles in U.S.

    September 4, 2026

    Suspicious Activity Reporting: Joint Statement on Suspicious Activity Report Confidentiality Considerations Regarding Communications with Customers

    September 4, 2026

    Monad’s mainnet upgrade makes storing data together 98% cheaper

    September 4, 2026

    Adobe just announced its next CEO. Here’s why its stock is dropping.

    September 4, 2026
    Latest Posts

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    About Us

    Welcome to MoneyLister.com — your trusted source for reliable insights in the world of finance, investing, and digital assets.

    At MoneyLister, our mission is simple: to make complex financial topics easy to understand and accessible to everyone. Whether you're a beginner exploring cryptocurrency, an investor tracking the stock market, or a professional staying updated on global business trends, we provide clear, informative, and up-to-date content to help you stay ahead.

    Facebook X (Twitter) Instagram Pinterest YouTube
    Latest Posts

    Automakers urge Congress to quickly ban Chinese vehicles in U.S.

    September 4, 2026

    Suspicious Activity Reporting: Joint Statement on Suspicious Activity Report Confidentiality Considerations Regarding Communications with Customers

    September 4, 2026

    Monad’s mainnet upgrade makes storing data together 98% cheaper

    September 4, 2026
    Recent Posts
    • Automakers urge Congress to quickly ban Chinese vehicles in U.S.
    • Suspicious Activity Reporting: Joint Statement on Suspicious Activity Report Confidentiality Considerations Regarding Communications with Customers
    • Monad’s mainnet upgrade makes storing data together 98% cheaper
    • Adobe just announced its next CEO. Here’s why its stock is dropping.
    • Shufti’s Shahid Hanif on Onboarding Friction and AI Fraud
    © 2026 moneylister. Designed by Pro.
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms and Conditions
    • Disclaimer

    Type above and press Enter to search. Press Esc to cancel.