Where and How Does a Company Lose Money Without Biometrics?

Many businesses have no clear idea how much money they lose every day for lack of biometric protection. E-commerce, banking, car-sharing, online education: sooner or later every digital service meets a user who is not who they claim to be. Anonymity attracts fraud. While a company cannot tell who is behind an account, the same schemes keep working against it. Below are the main places the money leaks out, and what closes each leak.

1. Onboarding Fraud: When a Fraudster Pretends to Be a Legitimate User

Onboarding is the most vulnerable stage for fraud. If the system does not verify the user’s face — or does it poorly — it essentially has no idea who is registering. This leads to common risks:

What Happens Without Biometrics

Fraudsters register with generated documents, Photoshop edits or stolen scans. If the system never compares the face to the document, it accepts someone else’s data or data that is entirely fake. The attacker then acts under a stolen or invented identity, opening accounts to resell or to feed into other schemes.

Financial Losses

• Chargeback losses: “It wasn’t me who paid / I didn’t receive the item / I was scammed — give me my money back.”
• Legal risks caused by incorrect KYC.
• Reputational damage from appearing in fraud reports.
• Additional costs for manual application reviews.

How Biometrics Solves This

• A real-time selfie matched against the ID photo blocks registrations with stolen or generated documents.
• Liveness detection prevents the use of fakes, deepfakes, masks, or photos.

2. Multi-Accounting

If one user can create 5–50 accounts, the product’s economics collapses. This is a critical issue for marketplaces, delivery services, ticketing, car-sharing, gaming, fintech services, and SaaS subscriptions. Any market with promotions, welcome bonuses, or cashback will inevitably attract users who create 20 accounts and redeem the bonus 20 times.

How Multi-Accounting Works

• A single user creates multiple accounts.
• Receives repeated bonuses, discounts, referral rewards.
• Uses them for free purchases or cash withdrawal.

One person can run dozens of accounts to farm promo codes and trial periods, get around blocks and limits, or buy 5+ tickets for resale.

Without Biometrics, a User Can:

• Use unlimited emails and phone numbers.
• Use VPN.
• Spoof IP addresses.
• Generate hundreds of “new devices.”

They cannot spoof a face, though, and that makes biometrics the most reliable deduplication method. A face check:

• Links an account to one real individual.
• Blocks repeated registrations.
• Reduces workload on anti-fraud teams.

3. Account Sharing

One person purchases access — ten people use it

To cut costs, users share subscriptions or resell them on various platforms

The problem hits hardest in:

• online education,
• subscription services,
• trading apps,
• corporate systems.

Financial Losses

• Revenue drop due to bypassing subscription models.
• Data leaks.
• Less control over who is inside the system.

How Biometrics Solves This

• Verifies the legitimate account owner when logging in from a new device.
• Prevents transferring accounts to third parties.
• Adds an extra layer of protection for personal data and funds.

4. How Biometrics Solves the Problem

The Only Way to Guarantee User Uniqueness

Unlike phone numbers, emails, IP addresses, or devices, a face cannot be quickly replicated in hundreds of copies

Strong Protection Against Spoofing

Modern liveness checks detect:

• photos of screens or printed images,
• masks,
• deepfake videos,
• another person’s face.

Cost Reduction for KYC and Security

Automated checks replace manual review, so each application costs less to process.

Clean and Accurate User Base Growth

Biometric checks keep “junk” profiles out of the user base, so analytics, targeting, and conversion numbers describe real people.

No Biometrics Means Direct and Hidden Losses

Without biometrics, a company loses money in four areas:

• Onboarding fraud: scammers get through.
• Multi-accounting: the same bonuses and discounts claimed again and again.
• Unreliable data: analytics and forecasts built on fake users.
• Costs of manual checks and security operations.

Implementing biometrics reduces onboarding fraud by up to 90% and minimizes multi-account losses to almost zero.