Regula finds companies stuck on outdated fraud KPIs as identity threats evolve

Regula is charting the gap between outdated fraud‑prevention metrics, and the ones companies want to implement. It found this gap in a survey of IDV professionals in the U.S., Germany, the UAE and Singapore.

The company found that most firms still track traditional, backward‑looking indicators such as chargeback rates, fraud losses and false negatives — which only reveal what happened after an incident.

Regula’s research shows growing demand for forward‑looking KPIs that assess compliance readiness, fraud prevention ROI and the ability to connect identity‑risk signals across systems and over time. Companies also want stronger links to external fraud‑intelligence sources as attacks increasingly span multiple platforms.

“The evolution of IDV fraud KPIs reflects a deeper shift in how organizations approach identity risk,” says Henry Patishman, EVP at Regula. “Measuring outcomes is no longer enough, especially as fraud becomes more distributed and adaptive.”

Australia requires mandatory age verification for social media, while the UK has age-gated online pornography. Other countries have either followed suit or are considering such measures, reflecting growing regulatory pressures.

Financial considerations are also driving change. About 35 percent of surveyed organizations reported a 10–20 percent increase in IDV spending over the past two years, prompting firms to measure the return on those investments more closely. Customer satisfaction remains a priority as companies try to balance security with a smooth user experience.

Speed is another emerging KPI as firms want to track how quickly fraud incidents are detected and contained. Delays often arise from the difficulty of determining whether an identity is genuine, reused or artificially constructed across multiple interactions.

Regula says organizations are moving toward KPI systems that span financial impact, operational performance, detection accuracy and customer experience. Industry differences are emerging. Fintech and crypto firms emphasize financial metrics; telecom and banking focus on compliance; and aviation prioritizes customer friction.

Regula concludes that without more forward‑looking KPIs, organizations risk making decisions with incomplete visibility, which could increase exposure to fraud and raise compliance failures and operational inefficiencies. For more on Regula’s survey and on practical tips for KPIs in IDV, the company has a blog post here.

The 50-page 2025 Digital Identity Verification Market Report and Buyers Guide from Biometric Update and Goode Intelligence details important trends, technologies and considerations for organizations considering digital identity verification solutions.

Article Topics

age verification  |  digital identity  |  fraud prevention  |  Germany  |  identity verification  |  Regula  |  Singapore  |  UAE  |  United States