Interac adds AI fraud checks to Verified identity service

Interac has partnered with Incode to add anti-impersonation tools to its Interac Verified identity service. Under the agreement, Interac has exclusive rights in Canada to offer document verification using Incode's technology.

The deal adds iBeta Level 3-validated liveness checks, along with tools to detect deepfakes, virtual camera feeds and signs of device tampering during digital identity checks. These features will be introduced in phases through Interac's document verification service.

The move reflects growing concern among financial institutions and other businesses over AI-generated fraud in digital onboarding. Synthetic images, altered documents and injected video feeds have become a more immediate threat for firms that rely on remote identity checks to open accounts, approve credit applications and process other higher-risk transactions.

The arrangement builds on Interac's existing verification work and is intended to widen access to stronger identity checks for Canadian organisations. Data residency will default to Canada, which may matter to organisations with domestic data-handling requirements.

New checks

One addition is passive liveness detection, which tests whether a real person is present during a verification session rather than a spoofed image or manipulated feed. Interac said Incode is the first supplier to achieve iBeta Level 3 validation with zero errors on both iOS and Android.

Another is Incode's Deepsight system, which runs a series of tests to identify AI-generated images or video, virtual camera use and signs that a device has been tampered with. Interac is also adding an opt-in fraud network intelligence feature, allowing participating businesses to share and receive risk signals across organisations to help identify emerging fraud patterns earlier.

That network-level approach aims to move beyond isolated checks carried out by individual businesses. By comparing signals across participants, firms may be better able to identify repeat patterns or coordinated activity that would be harder to detect from a single onboarding attempt.

For Interac, the agreement extends a role it has been building in digital verification alongside its long-established presence in Canadian payments. It sees a broader need for domestic identity services as more interactions move online and organisations look for ways to verify customers without requiring in-person checks.

Fatema Pirone, Head of Verification at Interac, described the aim in straightforward terms. "The goal is simple: build trust into digital interactions in Canada," she said.

"Enhancements to our document verification service within the Interac Verified suite is designed to deliver higher assurance and faster outcomes in a cost-efficient way, positioning it as a practical option for decision makers and allowing Canadian businesses to approve legitimate customers faster while stopping bad actors earlier," Pirone added.

Fraud pressure

Businesses face growing pressure to balance fraud prevention with a smooth customer experience. Tighter checks can reduce false acceptances, but they can also frustrate legitimate users if the process is slow or overly complex. The latest additions are intended to strengthen decision-making without creating unnecessary barriers for genuine applicants.

Incode, which specialises in identity verification and fraud prevention, brings technology aimed at newer forms of impersonation that exploit generative AI tools. These methods can include fabricated faces, manipulated selfies, altered identity documents and software that replaces a live camera feed with pre-generated content.

Ricardo Amper, Founder and CEO of Incode Technologies, said the company sees the Canadian market as facing a changing threat environment. "Interac plays a unique role in helping shape trusted digital experiences in Canada, and we're proud to support that mission with technology built for a new generation of identity threats," he said.

"By combining identity verification with advanced defences against deepfakes, injection attacks and other sophisticated forms of impersonation, this collaboration helps bring stronger assurance to more Canadian businesses without adding unnecessary friction for legitimate users," Amper added.

The agreement also underlines the growing importance of document verification as a frontline control in digital commerce and financial services. As organisations shift more customer interactions online, identity checks have become a point where fraud, regulation, user experience and data governance meet.

Interac plans a phased launch of the new functions through the Interac Verified suite, with the rollout targeted for the third quarter of 2026.