AI-driven Identity Verification in mobility services: Enhancing security and compliance
The mobility industry is evolving fast—but so are fraudsters. From fake IDs to deepfake technology, identity fraud threatens ride-hailing, car rentals, and shared mobility services. How is AI reshaping mobility security? Let´s dive in.
Iryna Bondar
From ride-hailing to car rentals and shared mobility services, the transportation industry is evolving at an unprecedented pace. However, with innovation comes risk—fraudsters are exploiting digital platforms using stolen identities, synthetic documents, and even deepfake technology.
"The mobility and transportation sector, including airlines, ride-hailing, and car rentals, has seen an increase in impersonation fraud. Over 90% of fraud within this vertical involved identity fraud."
The rise of fraud directly threatens mobility providers’ ability to scale, comply with regulations, and maintain customer trust—three critical challenges for decision-makers in the industry.
This is where AI-driven identity verification (IDV) comes in. By leveraging biometric authentication, AI-powered document verification, and real-time fraud detection, mobility providers can stay ahead of bad actors while ensuring a seamless user experience. This blog explores the evolving fraud landscape in mobility, key compliance requirements, and how Veriff is helping providers secure their platforms.
The evolution of mobility
The mobility industry is undergoing a significant transformation, driven by the rapid advancement of artificial intelligence (AI) and autonomous driving technologies. Autonomous driving, also known as self-driving or driverless technology, is revolutionizing the way we travel, making transportation safer, more efficient, and accessible. With the integration of AI-powered advanced driver assistance systems (ADAS), autonomous vehicles (AVs) are becoming increasingly sophisticated, enabling them to navigate complex roads and traffic scenarios with ease.
The future of mobility is being shaped by autonomous driving, with many automotive companies investing heavily in the development of autonomous driving systems. These systems use sensors, cameras, and AI algorithms to perceive the environment, predict potential hazards, and make decisions in real-time. Autonomous driving has the potential to transform the mobility industry, enabling the creation of new business models, such as mobility-as-a-service (MaaS), and improving the efficiency and productivity of transportation systems.
AI plays a crucial role in these advancements, not only in enabling autonomous driving, but also in securing mobility services against fraud and identity theft. AI-powered systems provide robust security mechanisms across ride-hailing platforms, car rental services, and shared mobility solutions, ensuring safer and more reliable transportation options for users worldwide.
AI in mobility services: Fraud prevention & use cases for autonomous vehicles
Ride-hailing platforms
Ride-hailing services face issues like driver/passenger fraud and fake accounts. AI systems verify identities before onboarding drivers, reducing risk. During account creation, AI-powered flagging systems detect inconsistencies, such as mismatched IDs or reused credentials, providing an additional layer of security. These measures protect both users and drivers, ensuring a safer and more reliable platform for everyone.
With the rise of AI-powered advanced driver assistance systems, AI-driven safety measures extend beyond identity verification. AI technologies continuously monitor ride-hailing transactions, flagging anomalies such as GPS spoofing, fraudulent ride requests, and account takeovers. By leveraging real-time data analysis and behavioral profiling, AI helps ride-hailing companies prevent scams and ensure fair pricing for users.
Car rental services
AI-driven ID checks ensure only verified users can rent vehicles, reducing fraud related to stolen or fake IDs. Fraudulent chargebacks from unauthorized users are minimized as real-time identity verification ensures that the person renting the car is who they claim to be. Additionally, AI solutions can integrate with payment systems to detect anomalies during transactions, further safeguarding against financial fraud.
As autonomous vehicles enter the car rental market, AI-powered security measures become even more essential. AI-enabled biometric authentication allows seamless, touchless vehicle access, eliminating the risk of fraudulent rentals. These AI-driven solutions enhance user convenience while ensuring that only authorized individuals can rent and operate vehicles. For instance, the car rental industry is rapidly embracing AI-powered identity verification (IDV) to enhance security, streamline operations, and reduce fraud.
This shift aligns with broader trends in mobility fraud prevention. In fact, according to Verif Identity Fraud Report, over 90% of all fraud within this vertical was impersonation fraud. Fraudsters use stolen or synthetic identities to bypass rental verification processes, leading to financial losses and security risks for mobility providers. AI-powered verification is becoming essential to combat these risks and ensure a secure, frictionless rental experience.
The Avis-Clear collaboration is a strong indicator that biometric IDV is moving from an innovation to an industry standard. Mobility providers that fail to integrate real-time fraud detection, biometric authentication, and automated ID checks risk falling behind.
AI-driven IDV solutions help car rental companies:
✔ Verify customer identities in real time
✔ Detect fraudulent documents and impersonation attempts
✔ Enable seamless, touchless vehicle access
✔ Ensure compliance with mobility regulations
As the mobility industry evolves, IDV solutions like biometric authentication and liveness checks will play a critical role in enhancing user trust, security, and operational efficiency.
Shared mobility (e-scooters, bike-sharing, car-sharing)
Shared mobility platforms rely on AI to secure user access and transactions, ensuring that only authorized individuals can rent vehicles or devices. Real-time biometric verification adds a layer of security, particularly for high-value rentals, by requiring users to re-verify their identity during key moments in the transaction process. AI technology enhances these processes by mimicking human capabilities, making verification more accurate and reliable. Advanced AI systems also prevent GPS spoofing, which is often used to manipulate fares or evade location-based restrictions, ensuring fair pricing and compliance with local regulations. For instance, AI algorithms analyze rider patterns to detect potential fraud, flagging suspicious activity, such as multiple rentals from a single identity or unusual ride routes.
Beyond fraud prevention, AI also enhances the efficiency of shared mobility services. AI-powered predictive analytics optimize fleet distribution, ensuring that shared vehicles are available where they are most needed. Additionally, AI-based monitoring systems detect unauthorized usage and help recover lost or stolen assets in real time.
Key fraud tactics in the automotive industry:
✔ Identity fraud: This involves using stolen or fake identities to access mobility services, such as ride-sharing or scooter rentals. Fraudsters may create fake accounts to exploit promotions or engage in other illicit activities. Identity fraud is a growing threat that requires strong protection strategies. Read this article to learn about identity fraud, theft, and ways businesses can protect sensitive information.
✔ Money laundering: Mobility platforms can be exploited to launder money by using them to transfer illicit funds.
✔ Bonus Abuse: This involves exploiting referral programs, promotions, or other incentives offered by mobility companies. Fraudsters may create multiple fake accounts or use other methods to illegitimately gain bonuses or discounts.
✔ Cyber threats: Mobility services are vulnerable to cyberattacks, including data breaches, account takeovers, and ransomware attacks. These attacks can compromise user data, disrupt services, and cause financial losses.
Regulatory frameworks for mobility companies: Navigating compliance and user safety across regions
As mobility companies including the ride-sharing or car rental platforms continue reshaping how we commute, understanding regulatory landscapes across different regions is critical. Here’s a concise yet thorough overview of key regulations in the UK & EU, US, and Latin America, specifically Brazil, Mexico, and Colombia.
UK & EU
Directive (EU) 2019/1151 & Member States Implementing Laws: EU member states, including the UK (despite Brexit, closely aligned in approach), enforce stringent regulations stemming from the framework provided by the Directive (EU) 2019/1151. These laws build on the mandate of ensuring clear operational transparency, consumer protection, and fair competition. As general rule mobility providers must:
- Clearly distinguish between professional drivers and private individuals.
- Ensure vehicles meet safety and emission standards.
- Maintain comprehensive records of drivers' licenses, vehicle inspections, and driver training.
User identity and fraud prevention: Companies operating digital platforms must verify driver identity and driving license authenticity. Regulatory framework and authorities frequently mandate digital identification checks and driver screening to prevent fraud, safeguard consumers, and uphold public safety standards.
United States
State-Level Transportation Network Company (TNC) Laws: In the US, mobility platforms are predominantly regulated at the state level, guided by Transportation Network Company (TNC) regulations. Notable requirements include:
- Comprehensive driver background checks and verification of valid driver licenses.
- Vehicle standards covering age, inspection, and insurance requirements.
- Transparent pricing disclosures and consumer protections against surge pricing practices.
Fraud prevention and verification: US state TNC regulations explicitly require mobility providers to implement robust measures for verifying identities of drivers and vehicles. These include mandatory checks on driving licenses and criminal records, aimed explicitly at fraud prevention.
Latin America: Brazil, Mexico, and Colombia
Brazil (National Mobility Policy - Law 12.587/2012): This law governs the urban mobility landscape, stipulating that mobility platforms must:
- Obtain authorization from municipal governments to operate.
- Ensure compliance with vehicle maintenance standards and driver eligibility.
- Require drivers to hold verified licenses, facilitating accountability and user safety.
Mexico (Ley de Movilidad Sustentable - 2022): Mexico's Mobility Law introduces:
- Obligatory registration and licensing of mobility providers.
- Stringent checks for driver's license authenticity.
- Vehicle certification and periodic technical inspections.
The Single Regulatory Decree of the Transport Sector, Decree 1079 of 2015 (Decreto Único Reglamentario del Sector Transporte, Decreto 1079 de 2015) serves as Colombia’s comprehensive legal framework for transportation. It consolidates and organizes various existing regulations to enhance mobility, road safety, and sustainability. The decree outlines requirements for vehicle registration, driver licensing, and public transportation services while establishing guidelines for infrastructure development and environmental protection in the sector. By standardizing these regulations, the decree aims to improve efficiency, accessibility,
Key takeaways:
✔ Regulatory frameworks mandate verification of driver licenses and identity checks across all regions covered.
✔ Specific laws directly address fraud prevention through identity verification and anti-fraud mechanisms tailored for mobility platforms.
✔ Regional regulations, although varied, commonly emphasize vehicle safety standards, transparent business practices, and comprehensive consumer protection measures.
Understanding these regulatory nuances enables mobility platforms to operate compliantly, ensuring safe, reliable, and user-trusted services globally.
How is Veriff helping mobility companies?
Veriff helps mobility companies by providing identity verification solutions to ensure secure and seamless onboarding. Their services include:
✔ Liveness checks – Veriff analyzes photos and videos (if enabled) to confirm if a user session is real.
✔ Automated data extraction – AI technology extracts ID data instantly to speed up verification.
✔ Manual & automated ID checks – Machine learning compares ID photos with a database, with an option for manual review by specialists.
✔ Biometric analysis – Extracts biometric information from photos and optional background video to confirm a user’s identity.
By integrating these verification steps, mobility companies can validate driver licenses, confirm experience levels, and authenticate users efficiently, while minimizing friction in the onboarding process.
“AI-driven identity verification is becoming essential in mobility services, ensuring security while maintaining a seamless user experience.”
Benefits of AI-powered Identity Verification
Improved efficiency and productivity
AI-powered identity verification is a critical component of the mobility industry, enabling the secure and efficient authentication of individuals and vehicles. With the increasing use of autonomous vehicles and mobility services, the need for robust identity verification systems has become more pressing. AI-powered identity verification systems use machine learning algorithms to analyze data and identify unusual patterns, ensuring only authorized individuals and vehicles can access mobility services.
The benefits of AI-powered identity verification are numerous, including improved efficiency and productivity. By automating the identity verification process, mobility companies can reduce the time and resources required to authenticate individuals and vehicles, enabling them to focus on providing better services to their customers. Additionally, AI-powered identity verification systems can help reduce identity theft and fraud, ensuring that mobility services are secure and trustworthy.
Case Study: How Bolt accelerated secure onboarding with Veriff
Bolt, a leading mobility company, partnered with Veriff and AWS to enhance its identity verification process. The challenge? Scaling fast, secure onboarding while preventing fraud.
Through Veriff’s AI-powered solution, Bolt:
- Streamlined thousands of verifications daily with AWS infrastructure.
- Improved fraud detection accuracy, reducing fraudulent signups.
- Ensured compliance with regional mobility regulations, protecting users and business operations.
This partnership allowed Bolt to provide a frictionless yet secure user experience, reinforcing customer trust and platform safety.
"One key component in providing safe and reliable service is proper and smooth user onboarding."
Future of mobility: Trends and insights
As we look to the future, several trends and insights are emerging in the mobility industry, driven by AI and autonomous technologies. One of the most significant trends is the shift towards mobility-as-a-service (MaaS), where transportation is offered as a flexible, on-demand service. This model leverages AI-driven solutions to provide personalized and efficient transportation options, meeting diverse consumer demands.
Another key trend is the integration of AI capabilities into various aspects of mobility, from route optimization to predictive maintenance. AI models are being used to enhance customer-centric solutions, providing a seamless and intuitive user experience. Additionally, the use of generative AI in designing and testing autonomous driving systems is accelerating the development of safer and more reliable vehicles.
The aviation industry is also exploring the potential of AI and autonomous technologies, with advancements in autonomous mobility and AI-driven innovation paving the way for the future of air travel. As AI continues to evolve, it will play an increasingly important role in shaping the future of the mobility industry, driving efficiency, safety, and innovation across all modes of transportation.
