In fact, many startups (such as DreamQuark) are working on improving fraud detection using machine learning and more sophisticated processes. Nobody has eradicated fraud, and nobody will. So fraud is nothing new in the banking industry. But N26 has noticed that there’s a higher fraud rate for customers who go to the post office to check their ID document. You might think that uploading a photo of your ID document leads to more fraudulent activity. The company tries to detect fraudulent activity as quickly as possible. And N26 also has ongoing transaction monitoring for those who have already opened a bank account.

In other words, N26 monitors this fake ID rate. “Security is our top priority at N26, which is why secure identification processes and constant review of our security and monitoring mechanisms to prevent identity theft are of great importance to the company,” the company told me in a statement. You can try to keep the fake ID rate as low as possible. That’s why you can’t simply eradicate the issue. More generally, other banks also have to deal with fake ID documents. For instance, it’s a common process in the U.K. Other banks also take advantage of this procedure. In some countries, you can open an N26 account by uploading a photo of your ID document and a selfie. In Germany, you can also print a document, go to the post office with an ID document and make a post employee check that you are actually you. In many countries, you can initiate a video call with someone so that they can check your ID and compare it with your face. According to him, N26 complies with all regulations when it comes to onboarding.Ĭurrently, N26 has three different procedures depending on the country and works with a third-party company called SafeNed for some of the verification procedures. “Unfortunately, it can happen.”īut Stalf also insisted that it’s not a widespread problem and that all banks face the same issue. Unfortunately, we didn't detect it in real time,” co-founder and CEO Valentin Stalf told me. “One or two people got through with a fake ID document. According to Wirtschaftswoche, it’s quite easy to create an account with a fake ID document. German weekly magazine Wirtschaftswoche published an article that questioned N26’s identification processes.

Building a startup is hard, but building a startup that manages your bank account is even harder given the increased scrutiny. Fintech startup N26 is growing quite rapidly.

German id card fake