The Great Onboarding Paradox: Why “Frictionless” is the New Risk in 2026

Table of Contents

• 1. Are you welcoming the right individuals.
• 2. The 2026 Fraud Landscape: Beyond Traditional Masks
• 3. Introducing “Smart Friction”: A Strategic Solution

• 3.1 Passive Liveness (The Invisible Shield)
• 3.2 Device Integrity & Environment Cues
• 3.3 From Data Entry to Risk Intelligence

• 4. The SimpleWorks Edge:

Are you welcoming the right individuals, or inadvertently granting access to the wrong ones?

In pursuit of a “Zero Touch” experience, the BFSI sector has invested heavily in removing friction. While one-click accounts and instant approvals were the goal, by 2026, this approach had made digital interfaces more vulnerable.

The industry now faces a paradox: the frictionless customer journey has become the main entry point for Video Injection Attacks and Deepfake Fraud.

The 2026 Fraud Landscape: Beyond Traditional Masks

The threat landscape has evolved. Legacy systems were designed to prevent “Presentation Attacks,” such as using photos or static masks. Today, fraudsters can bypass these measures without appearing on camera.

• Video Injection Attacks: Attackers employ virtual cameras and emulators to bypass physical hardware, injecting high-fidelity, AI-generated video directly into the System stream. The system perceives this as a legitimate live feed.
• The Compliance Gap: The RBI’s 2025-26 updated KYC Master Directions have raised standards. Face matching alone is insufficient; regulators now require liveness verification that resists synthetic manipulation.
• The Latency Trap: Many banks rely on “Dumb Friction,” such as asking users to blink, smile, or turn their heads. These “Active Liveness” checks are easily mimicked by AI and often frustrate genuine customers, resulting in a 40% drop-off rate in V-CIP sessions.

Introducing “Smart Friction”: A Strategic Solution

Consider friction not as a UX failure, but as a dynamic security tool.

Smart Friction remains invisible to 95% of genuine users while presenting significant challenges to the 5% who trigger risk signals. This approach prioritizes safety and seamlessness over speed alone.

1. Passive Liveness (The Invisible Shield)

Instead of requiring users to perform actions, the system conducts Passive Liveness checks. It analyzes skin texture, micro-movements, and background light reflections discreetly. This process is faster for users and significantly more difficult for deepfakes to replicate.

2. Device Integrity & Environment Cues

Before the video call begins, a smart CRM checks for indicators such as emulator usage, active virtual camera drivers, or suspicious IP velocity. These signals enable the system to adjust friction levels in real time.

3. From Data Entry to Risk Intelligence

In this model, Video KYC agents are empowered to focus on analyzing behavioral cues and human-level anomalies that AI may overlook, rather than manually entering PAN numbers, which OCR can process.

At SimpleWorks, we believe the best onboarding experience offers both protection and a welcoming approach. Our platform enables COOs and Retail Banking leaders to balance growth with the evolving fraud landscape of 2026.

The SimpleWorks Edge:

• Edge-AI Processing: We address latency by processing initial liveness heuristics on the user’s device. This approach prevents session timeouts and ensures a smooth experience.
• Smart Orchestration Engine: Automatically trigger “Smart Friction” steps only when high-risk indicators are present, keeping your conversion rates high and your fraud rates near zero.
• Audit-Ready Governance: Every session, every rejection, and every AI decision is logged in a tamper-proof audit trail that meets the latest RBI norms for V-CIP compliance.

Ready to evolve beyond “Zero Touch” to “Smart Touch”?