From Technology to Experience: How AI is Redefining Customer Authentication

In the digital era, customer authentication is no longer a simple technical step, it defines user experience, trust, and even legal compliance for businesses. Artificial Intelligence (AI) is enabling organizations to transition from manual, slow processes to automated, seamless, and secure experiences. This article explores how AI is transforming authentication methods, the practical benefits it brings to enterprises, and the key risks organizations should manage when deploying authentication solutions.

Why Customer Authentication Is a Strategic Imperative

Customer authentication serves as the gateway to all digital services such as account opening, loan approval, e-contract signing, and payment transactions. If this process is cumbersome or insecure, customers abandon midway (high drop-off rate), leading to revenue loss and heightened risks of KYC and anti-money laundering (AML) non-compliance.

With the rise of cybercriminals exploiting deepfake (AI-generated fake images, videos, or voices) and advanced spoofing techniques, enterprises must upgrade their authentication from simple “verification” to proactive defense. Leading organizations have reported a surge in deepfake-related fraud within fintech and banking, underscoring the need for immediate and decisive action.

How AI Is Transforming the Authentication Process

AI plays a central role across multiple touchpoints in the authentication journey. First, Optical Character Recognition (OCR) automates data extraction from ID documents (citizen ID cards, passports) instead of requiring manual entry to reduce errors and save time.

Next, face matching uses deep learning models to compare a user’s selfie with their ID photo, achieving high accuracy when trained on domain-specific datasets.

Another crucial layer is liveness detection, which determines whether the presented image or video originates from a real, live person rather than a replay, photo, or deepfake - an essential safeguard against presentation attacks.

Beyond this, AI enables behavioral biometrics analysis, such as keystroke dynamics, mouse movement, or how users hold their phones to establish behavioral profiles capable of detecting anomalies even when fraudsters possess legitimate documents.

Combining these layers into multi-factor authentication, along with device data, metadata, and national identity databases, creates a robust, multi-dimensional defense that delivers fast yet highly secure verification.

Liveness Detection: The Cornerstone in the Deepfake Era

Liveness detection operates through two primary methods:

• Active detection which requires users to complete challenges such as blinking, turning their heads, or speaking a prompted phrase.

• Passive detection, which analyzes image or video sequences without explicit user instructions.

Each approach offers trade-offs: active detection yields clearer results but may introduce friction, while passive detection provides a smoother user experience but demands sophisticated AI models to detect temporal inconsistencies.

The international standard ISO/IEC 30107-3 defines performance benchmarks for presentation attack detection, and independent laboratories such as iBeta conduct certification tests under this standard. Compliance with such standards and third-party validation gives enterprises a reliable foundation when choosing technology providers.

Tangible Business Benefits of AI-Driven Authentication

Adopting AI in authentication is not merely a technological upgrade but a strategic business decision:

1. Faster Customer Onboarding: Banks and financial institutions in Vietnam have reduced account opening time from 1–2 days to just minutes by implementing eKYC and liveness detection.

2. Higher Conversion Rates: A fast, accurate, and convenient authentication process encourages users to complete transactions, especially critical in digital banking and online insurance.

3. Enhanced Compliance and Fraud Prevention: AI-powered systems can automatically cross-check data with national databases such as the Citizens Database or VNeID, helping enterprises demonstrate compliance with the State Bank of Vietnam’s regulations and national data protection decrees.

4. Optimized Operational Costs: AI reduces the need for manual review, minimizes human error, and enhances scalability without proportional cost increases.

Managing the Risks of AI Adoption

While AI delivers strong value, it also introduces new challenges. Algorithmic bias in training models can lead to inaccuracies in recognition. Meanwhile, biometric data security is a top concern, while facial images, videos, and other identifiers must be encrypted, securely stored, and managed in accordance with Decree No. 13/2023/NĐ-CP on personal data protection.

Therefore, organizations should partner with solution providers certified under international standards such as ISO/IEC 27001 (Information Security Management) and ISO/IEC 30107-3 (Biometric Anti-Spoofing). These certifications demonstrate not only technical competency but also ethical and responsible AI practices.

FPT eID – A Comprehensive AI-Powered Digital Identity Platform

FPT eID, developed by FPT, is an AI-driven digital identity and authentication platform integrating biometric and liveness detection technologies to achieve near-100% accuracy in user verification.

Its ecosystem includes:

• FPT.IDCheck – authenticates chip-based citizen ID data and facial images.

• eKYC – verifies individuals in online financial transactions.

• eKYB – authenticates corporate identities for credit and banking operations.

FPT eID has been certified by international organizations such as iBeta and Bixelab, and complies with ISO/IEC 27001 and ISO/IEC 30107-3, allowing Vietnamese enterprises to deploy world-class authentication systems locally while fully compatible with national databases and VNeID.

Conclusion

AI is not merely a trend; it is the new foundation for every customer authentication strategy. As fraud becomes more sophisticated, enterprises must evolve from “information verification” to “intelligent authentication”, where AI guarantees both security and seamless experience.

Pioneering organizations investing in digital identity technologies like FPT eID are not only building stronger defenses but also cultivating trust - the cornerstone of sustainable growth in Vietnam’s digital economy.