World ID: Mitigating fraud on online marketplaces and platforms in the age of AI

Joel needed a new computer. While perusing an online forum for expats, he spotted a secondhand one that fit his budget, so he reached out to the seller. But Joel became suspicious when the name of the person he texted didn’t match the one on the marketplace account. He backed out of a likely scam.

Many people aren’t as lucky. Online fraud is a multi-billion-dollar industry. In the U.S. alone last year, consumers reported losing $12.5 billion to digital scams involving nonexistent goods, fake job offers and bogus investments. In Thailand, where World recently launched, the government estimates citizens lose up to $2 million per day to online fraud.

The basic problem is that fraudsters can easily set up hundreds, even thousands, of fake accounts on online platforms. It’s just a matter of creating lots of emails. Once they do, they can defraud consumers in ways big and small. For instance, in online marketplaces, scammers can manipulate product ratings by flooding the site with fake reviews, in turn crowding out honest sellers and tricking buyers. 

Things can get more nefarious, such as when fake government accounts lure people in with promises of welfare benefits, only to steal from them. Yet as soon as these accounts are shut down, they pop up elsewhere.

To prevent online fraud, some governments have pressured prominent platforms to clean things up. In the UK, major social media companies signed the Online Fraud Charter, pledging to take additional action to combat online scams. But a year later, 4.9 million UK residents reported losing money to a scam on one of these platforms in the previous 12 months.

All of this creates data security issues for individuals. Data breaches have reached epic proportions, indicating it’s time to move to solutions that require minimal personal data to be shared. Even assuming that such data can be kept safe, verification introduces major costs to platforms, which are ultimately passed on to consumers.

What’s more, with AI becoming increasingly sophisticated, there is no certainty that government ID verification will even work to combat fraud. AI is making it possible to generate highly realistic fake identities at scale, undermining traditional identity verification methods.

Online fraud isn’t just a consumer problem—it’s an economic and regulatory challenge. It erodes trust in digital platforms, reduces business participation and forces governments to impose verification mandates that increase costs without solving the root problem. AI is making fraud even easier, yet most government responses add friction for individuals while failing to curb bad actors. A more effective, privacy-first approach is needed.

Verifying that accounts on a platform are connected to a real human is a good idea, but advanced AI requires a new way of thinking about identification. World is infrastructure for the internet in the age of AI.

World ID is a way for people to anonymously and securely prove they are a real and unique human online.

Online platforms and marketplaces considering mandatory government ID checks or KYC can instead integrate World ID into their account signups. It offers an AI-resistant alternative to traditional identity verification by anchoring to a unique proof of human that cannot be duplicated or faked—without requiring individuals to disclose personal data. The result is that individuals can be reassured that the people they connect with on the platform are humans too.While consumers should still take steps to protect themselves and online services should invest in detecting bad actors, this approach significantly lowers the risk of being duped by networks of  fake accounts. 

Because it doesn’t require people to fill out complex forms or submit a government ID, World ID is frictionless for consumers and easy to manage for platforms. Online services can choose whether to seek additional verification, but this is an important foundation to rebuilding trust and protecting consumers. 

Implementing World ID on online platforms and marketplaces helps ensure:

• Human-to-human interactions: Consumers can trust they are dealing with a human on the other end.
• Reduced fraud: Accounts associated with fraud can be shut down without popping up again.
• Greater trust in platforms: Online platforms win by shielding individuals from scam accounts; verified humans reduce fraud and restore consumer trust in digital commerce.
• Lower risk to personal data: Because platforms don’t need to gather personal data, data is at less risk of being stolen. 
• AI-resistance: World ID offers a person-centric approach to authentication that, unlike government ID verification, can’t be faked and lets individuals transact online safely, even as fraud techniques evolve.

World ID offers a path forward for online platforms—protecting people, reducing fraud, and ensuring fair access to digital services.

Online fraud is evolving. But with World ID, so is security and privacy.