Case Study: FriendFinder Networks

Explore the key RegTech measures FriendFinder Networks used to onboard their employees and verify end-users on its suite of dating, streaming and other websites, including adult-only platforms that required a robust age verification solution.

Results we achieved in our partnership

2x

increase in conversions for end-users via Age Verification and the Magic Link feature

99%

of employees passing KYC verification on their first attempt in under 90 seconds

iDenfy x FriendFinder Networks

Originally started as a mainstream social networking site in the 90s, FriendFinder Networks quickly adapted to consumer preferences and branched out into different social media verticals, connecting even more people worldwide. The company now operates multiple social media networks, including AdultFriendFinder, an exclusive platform focused on adult-only relationships. 

Currently, FriendFinder Networks has several heavily trafficked websites in the world, appealing to diverse cultures and interest groups while enabling people to interact easily.

With over 700 million people actively using the company’s websites during a proven track record spanning two decades, FriendFinder Networks continues to create innovative social media solutions. However, this traffic also means that the business needs to operate multiple security measures that can ensure their customers’ data is protected and stored. 

On top of that, FriendFinder Networks operates in the adult industry by operating age-restricted services, in this case, a branch for users online to explore their fantasies and build new relationships. 

The Challenges

FriendFinder Networks, a versatile social networking service company diversifying into various social media sectors, empowers its team members to create and deploy user-friendly web and mobile applications collaboratively. These applications cater to social networking and live-streaming video needs, serving millions of users daily.

That said, FriendFinder Networks operates under the jurisdiction of the laws of the United States, and as such, the company’s compliance program must follow the requirements and guidance of all federal rules and regulations, including: 

  • Verifying employees (KYC).
  • Verifying the identity of any customer the company enters into a business relationship (KYB).
  • Screening sanctions lists to detect potential matches and prevent them from onboarding (AML).

US legislation is a stringent matter, and any oversight due to negligence is not taken lightly. “The main challenge for our company was staying in compliance with the changing rules and regulations as a US business that provides online services globally,” explained an associate at FriendFinder Networks. 

FriendFinder Networks is dedicated to creating an online space for people to connect and consume content without any constraints. At the same time, before iDenfy, the company wanted to enhance internal employee satisfaction and engagement and reduce attrition rates — all in compliance with global regulatory requirements. 

FriendFinder Networks’ goal was to scale and accelerate growth while maintaining a compliant onboarding flow. That’s why time-consuming and lengthy manual ID verification processes weren’t an option. 

As a result, FriendFinder Networks needed dynamic Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance solutions that would allow them to verify identities, confirm user age, and alert the company of any sanctions or other violations to avoid any ramifications, and also streamline the onboarding processes.

The Solution

The FriendFinder platform places a greater emphasis on fostering friendships than the majority of dating sites. Since it originated as a social network almost three decades ago, millions of users continue to use the platform for that primary purpose. Consequently, the company wanted to partner with a trustworthy, user-centric identity verification provider, preferably carrying other fraud prevention tools. 

FriendFinder Networks looked for an automation solution to streamline their KYC/AML compliance processes and find a user-friendly option that could be swiftly implemented. 

To overcome the burden of keeping up with ever-changing regulatory rules and regulations, the company implemented iDenfy’s identity verification and AML tools. Currently, FriendFinder Networks uses these tools:

  • Identity verification or Know Your Customer (KYC) verification.
  • Age verification to confirm the age of its users.
  • Know Your Business (KYB) verification to verify its partners and associated businesses.
  • AML screening, which includes Politically Exposed Persons (PEPs) and sanctions checks.

During FriendFinder Networks’ trial of iDenfy’s RegTech suite, the company looked for an adaptable service provider capable of customizing the solution to fit their requirements and budget. “We wanted the chosen partner to help us create a process that would be convenient for our internal teams and the end-users,” commented FriendFinder Network’s associate.

Why iDenfy?

FriendFinder Networks explored various providers and ultimately chose iDenfy due to: 

  • Competitive pricing. iDenfy offered a transparent pricing model where denied and failed verifications are free. 
  • Fast and accurate verification. iDenfy allowed FriendFinder Networks to efficiently cater to a large volume of its customers and employee base without facing backlogs. 
  • Increased fraud detection. iDenfy was able to accelerate FriendFinder Networks’ growth by offering customers a streamlined onboarding process and effective fraud detection capabilities, such as fake documents or sanctioned entities.

According to FriendFinder Networks, its team chose to integrate iDenfy’s solutions because of the product’s reliability and technical capabilities. Naturally, this decision aligned with FriendFinder Networks’ goal of effectively supporting business growth in the future. 

The Results

By partnering with iDenfy, FriendFinder Networks successfully:

  1. Streamlined the onboarding of staff members. FriendFinder Networks eliminated the need for face-to-face interactions. With 99% of employees successfully completing the verification process on their first attempt and without delays, FriendFinder Networks achieved a smoother onboarding experience, significantly enhancing communication and overall operational efficiency.
  2. Implemented an automated KYC process for end-users. Instead of manual operations, the FriendFinder Networks streamlined the identity verification process through iDenfy’s Magic Link feature, which allows users to confirm identities and check their age by sending a special verification link. As a result, FriendFinder Networks saw a 2x increase in conversions.
  3. Switched to a streamlined KYB flow. This meant that all corporate clients or any third-party service providers that the company wanted to work with needed to go through a background check using iDenfy’s Business Verification platform, which offered custom features, such as its Questionnaire, which enabled FriendFinder Networks to customize this process and collect necessary information for verification more efficiently.

This not only improved operational efficiency and ensured KYC/KYB and AML compliance but also accelerated their ability to scale. Additionally, the KYC verification link option didn’t require additional programming, helping the company offer its users a distinctive yet universal link for multiple identity verifications.

Additionally, FriendFinder Networks has improved ID verification approval rates, achieving a 92% success rate. The average KYC process completion time is now 90 seconds.

After iDenfy, the enhanced system’s ability to identify subtle document features, verify the customer’s age, and check if they aren’t on any global sanctions lists greatly improved FriendFinder Network’s onboarding process, reinforcing trust among its big community of employees and platform users. 

“Since partnering with iDenfy, it’s resolved our two biggest problems, which were confirming identities, including age verification, and confirming those individuals were not listed on any sanction lists,” said an associate at FriendFinder Networks. 

About FriendFinder Networks

  • FriendFinder Networks is a US company that owns and operates live online broadcasting and social networking sites.
  • The company’s services range from social media sites, online personals, online chat rooms, or instant messaging to photo and video sharing, blogs, message boards, and premium content websites.

Related: Age Verification in Online Dating

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