Proxyrack is a provider of proxy solutions designed to help businesses and individuals enhance their online data-collection capabilities. With a vast network of residential and data center proxies, the platform strives for accuracy by providing diverse IP addresses and scalable performance. Proxyrack prioritizes fast onboarding, helping users find the right proxy to get started in under 10 minutes.
Proxyrack’s goal is to constantly evolve and meet diverse user needs as the company’s values align with the clients’ requirements and eagerness to bring any ideas to life. To improve its proxy selection and maintain this seamless and lag-free experience, Proxyrack decided to look for a new partner in identity verification or Know Your Customer (KYC) compliance management. As user volume grew, scaling became a challenge with the previous provider, leading to Proxyrack’s decision to find a new RegTech partner for a smoother identity verification process.
The Challenges
Creating different verification flows for proxy service users is complex, as this sort of audience, where user experience comes first, can switch to another provider really quickly after experiencing a poor first impression. On top of that, local and global KYC requirements needed to be met, which made it challenging for Proxyrack to balance end-user experience and complete compliance without increasing drop-off rates with the previous ID verification process.
Additionally, Proxyrack noticed another issue — rising fraud schemes that have become more sophisticated, especially with increasingly popular generative AI schemes. This made real-time fraud prevention difficult, especially regarding deepfakes. To counter this challenge, Proxyrack needed to adopt a new, customizable, dual-layer KYC process, combining automated ID document data extraction with selfie biometrics and 3D liveness detection to detect bypass attempts with the highest accuracy rates.
“We encountered a significant challenge with our previous KYC provider, where users were often miscategorized, causing delays and errors that negatively affected the overall customer experience,” said Ariana Wang, a Fraud Expert at Proxyrack.
Furthermore, effective risk assessment and management practices were essential for maintaining the integrity of Proxyrack’s platform. KYC onboarding data needed to be accurate and collected quickly, with the main goal of adding more credibility to Proxyrack’s platform. This included finding new ways to identify unusual user behavior and suspicious patterns quicker, prevent fraud and money laundering, and promote responsible use of its proxy services.
Proxyrack also didn’t want to hurt the business with chargebacks and fraudulent disputes, which always come with extra unwanted costs and potential damages, including negative effects on the company’s compliance standings:
“Reducing the likelihood of chargebacks or disputes due to unauthorized transactions or fraudulent accounts was critical for us, especially in payment processing, to ensure smooth operations and protect our business from potential losses,” explained Ariana Wang, a Fraud Expert at Proxyrack.
So, in this sense, both its in-house compliance team and end-users wanted to feel more in control of the process:
- Compliance specialists needed a unified dashboard where they could manage KYC verifications more efficiently (with the right building blocks to access due diligence data).
- Customers needed a more straightforward onboarding flow that would also work as a shield from fraud (without disrupting the experience for genuine users).
The challenges Proxyrack faced resulted from several factors within the company’s business environment, particularly becoming more prominent when the platform entered its scaling phase and navigated evolving security, regulatory, and operational needs.
“As our business expanded, we needed a more flexible and fraud-focused solution. Our previous supplier’s rigid labeling system was designed primarily for regulatory compliance rather than effective fraud detection, resulting in subpar filtering of fraudulent activities,” added Ariana Wang, a Fraud Expert at Proxyrack.
Proxyrack previously used an ID verification system, which restricted multiple verification attempts, creating a cumbersome and time-consuming experience for Proxyrack’s users, especially when the platform needed to handle verification spikes. As a result, Proxyrack wanted a new software that would help block suspicious activity in real-time and verify identities quickly and accurately, even at high volumes.
The Solution
Proxyrack wanted to manage all identity data and its KYC operations in one place because the proxy service provider didn’t want an overly complex process for both its in-house compliance specialists and end-users.
➡️ Before iDenfy, Proxyrack had:
- Limited verification attempts. Users could only attempt ID verification once, and any additional attempts to pass again required contacting customer support, creating an unnecessary delay, which also meant more time spent on KYC and less on other critical business operations.
- Lack of control in user onboarding. Proxyrack asked for a few custom adjustments, such as modifying its existing KYC system and allowing certain user groups to retry their verification after a failed attempt, but these requests remained unaddressed.
“Our main goal is to identify high-risk, fraudulent transactions, and our previous system wasn’t accurate enough. As fraudsters grew smarter, some even managed to bypass the initial verification, making it harder to detect fraud after the onboarding process,” added Ariana Wang.
To reduce financial losses, improve operational efficiency, and handle growing verification volumes, Proxyrack integrated iDenfy’s KYC software.
➡️ After iDenfy, Proxyrack started using:
- Automated identity verification. This eliminated the one-time verification rule and didn’t require extra manual intervention from Proxyrack’s in-house team, increasing verification speed and positively impacting user retention and satisfaction rates.
The implementation of iDenfy’s software was straightforward for Proxyrack, with only a few areas requiring additional attention, which iDenfy’s team addressed, proving the required documentation and resources:
“Most of the effort involved understanding the logic behind verification tokens and making necessary webhook adjustments,” noted Ariana Wang.
Instead of relying on pre-built plugins for integration, Proxyrack chose to go with iDenfy’s API. This scalable solution can handle many requests, including generating verification tokens seamlessly and directing customers to Proxyrack’s platform.
Additionally, Proxyrack customized iDenfy’s setup to meet specific needs, which helped ensure compatibility with its existing workflows. One key requirement was detecting and managing duplicate IDs during verification — a feature iDenfy’s solution provided, helping Proxyrack boost KYC accuracy.
Why iDenfy?
Five key factors led Proxyrack to choose iDenfy’s solution, focusing on its ability to provide:
- Document verification that’s performed in seconds with liveness detection.
- Real-time suspicious behavior detection to track fraudulent transactions.
- A high-performance software to boost conversion rates and adapt to different jurisdictions.
- Customization options for different use cases in KYC onboarding.
- A unified dashboard for compliance officers to manage all KYC data, including re-verifications.
“iDenfy’s solution offered advanced fraud prevention tools. With features like duplicate ID detection, we could effectively spot and prevent multi-accounting, which previously led to free trial abuse and more time spent on high-risk transactions,” explained Ariana Wang, a Fraud Expert at Proxyrack.
The Results
With the integration of ID verification software, it was easier for Proxyrack to achieve its business goals and have more time to focus on scaling operations instead of allocating most of its resources to manual support regarding KYC cases, such as re-verification attempts.
This switch to iDenfy helped block suspicious activity and verify user identities more efficiently, ultimately leading to minimized chargeback rates. By integrating iDenfy’s ID verification software, Proxyrack was able to adapt to its existing identity verification flows and create new, custom processes aimed at expanding to new markets without sacrificing conversion or user experience.
The key areas of improvement after starting working with iDenfy were:
🟢 Increased Efficiency
Using iDenfy’s AI-powered KYC verification software, Proxyrack automated the whole process (including re-verification attempts), improving the conversion rate while reducing the average onboarding time by 70%. This resulted in handling volume spikes without disruptions and twice the number of user verifications daily.
🟢 Gained the Flexibility for Customizations
Personalized the verification flow to reduce manual intervention, making it easier to detect bonus abuse and multiple accounts through duplicate face and ID detection. iDenfy’s custom-tailored features ensured that 100% of Proxyrack’s verification criteria aligned with its internal fraud prevention system rather than irrelevant regulatory labels.
About Proxyrack
- Proxyrack provides proxy solutions designed to help businesses and individuals enhance their online data-collection capabilities.
- It offers reliable solutions that cater to various needs, such as web scraping, market research, ad verification, and bypassing geo-restrictions.
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