The adoption of data protection laws and specific regulations for this Industry aimed at mitigating fraud presents companies with the challenge of implementing biometric and non-biometric identity verification technologies to safeguard against threats. Sovos, a global provider of solutions and services for regulatory tax compliance and digital identity, has developed advanced solutions to address these challenges.

It is estimated that 15–20% of fraud cases in the telecommunications sector in Latin America today are related to identity theft—a crime in which someone attempts to impersonate another person to obtain personal information, commit fraud, or harm their reputation.

The rise in such crimes, closely linked to the increase in digital transactions and the accessibility of personal data, has led to actions like the enactment of Chile’s Resolution No. 566/2024 (and its amendments), which establishes minimum requirements for telecommunications companies in operations with customers, such as contract signing and equipment purchases.

In practice, this means service providers must have mechanisms that unequivocally verify a person’s identity, whether in person, virtually, or by phone. The resolution specifies that identity verification must include live fingerprint and facial biometrics, detailing the form and process in which they should be used.

At the 10th America Digital Latin American Congress of AI, Business & Technology 2025 you will be able to learn more about Sovos biometric solutions. Visit booth A31 on the exhibition floor and meet with a representative of the company; also participate in the conference Fraud knows more about you than your phone company, which will be given by Tomás Castañeda, Director Product Development of SOVOS and Gabriel Gasparolo, Digital Transformation Manager of Movistar Chile.

Anti-Fraud Biometrics

Why biometrics? Because they have proven to be highly effective in preventing real-time fraud. Biometric tools allow for high-precision identity validation, even against attempts involving synthetic or stolen identities, while also improving user experience.

However, not all identity verification processes that incorporate biometrics are equally effective.

“As anti-spoofing technologies evolve, so do the methods aimed at bypassing them. We’ve observed highly sophisticated fraud attempts that are difficult to detect using tools that aren’t advanced enough to keep up with fraudsters. The threats are ever-present, and we’ve even reached a point where there are online portals selling subscription plans for ‘x’ number of fake identity documents per month,” explains Tomás Castañeda, Product Development Director at Sovos.

Castañeda shares that Sovos has worked for years to develop its own identity verification system, which, in the case of remote validation using facial biometrics, integrates five security layers:

1. Fake ID Detection: A machine-learning algorithm trained to detect fraud by examining various patterns and characteristics of an identity document, such as cover opacity, paper texture, and other elements, to identify fake, photocopied, or altered documents.
2. Liveness Detection: This mechanism can determine, through the camera of a device like a smartphone, whether a live person is present behind the camera, rather than photos, videos, or masks. The image is cross-checked—depending on the country—against databases or information stored on the identity document, among other sources.
3. Denial Lists: Facial recognition is used to identify individuals stored on a blacklist of potential fraudsters or those who have engaged in malicious acts using biometric facial methods.
4. Government Integration: By leveraging governmental APIs or services, it confirms whether a document was officially issued and remains valid.
5. One Face, One ID: Ensures that a single face corresponds to a single identity document.

Additionally, Sovos has refined in-person identity verification, which uses fingerprint biometrics to compare a live fingerprint with the one stored on the identity document or in a database.

Tomás Castañeda believes the regulations implemented in the telecommunications sector, expected to take effect in 2025, will set a regional trend for other industries, especially highly regulated ones. These industries will likely face new regulations driven by data protection laws, requiring companies to implement more advanced identity verification technologies to reduce the risk of identity theft and data breaches.

Don’t miss all the news that Sovos will present at the 10th America Digital Latin American Congress 2025 on April 2 and 3 at Espacio Riesco. Buy your tickets here