When caller verification becomes the attack vector.
Industry
Retail
Size
300,000
Challenge
A leading home improvement retailer was hemorrhaging money to organized fraud at their highest-value transaction points. Pro contractors and equipment rental customers represented significant revenue streams, but weak identity controls made them prime targets for fraud schemes. Traditional checkout processes lacked real-time verification, allowing bad actors to exploit vulnerabilities with stolen or fabricated credentials. With thousands of locations processing high-ticket transactions daily, the retailer needed a scalable solution that could verify customer identities instantly without disrupting the customer experience or slowing down operations at busy counters.
Solution
1Kosmos deployed identity verification directly into the point-of-sale workflow at Pro desks and equipment rental counters nationwide. Associates now verify customer identities in real time using document authentication and liveness detection before completing high-risk transactions. The solution integrated seamlessly into existing touchpoint applications, requiring minimal training and no additional hardware. What began as a pilot quickly expanded across 1,800 stores after demonstrating immediate fraud reduction. The system now processes tens of thousands of ID verification sessions weekly, creating a fraud-resistant barrier at the most vulnerable transaction points while maintaining the speed and convenience contractors expect.
The Contractor Problem
One of the world's largest home improvement retailers built its business serving two distinct audiences: everyday homeowners and professional contractors. The Pro customer segment drives enormous revenue. Contractors purchase equipment, rent heavy machinery, and order materials in bulk. But that same segment became a magnet for fraud. High-value transactions, minimal identity checks, and the speed demands of busy job sites created the perfect conditions for exploitation. Fraudsters used stolen credentials, falsified documents, and social engineering to walk away with expensive equipment and rental tools. In April alone, targeted fraud schemes cost the retailer millions. The existing checkout process had no real-time way to verify that the person at the counter was who they claimed to be.
A Fraud Landscape Without Boundaries
The fraud wasn't random. It was organized, targeted, and sophisticated. Pro desks and rental counters were the primary attack surfaces. These transactions moved fast, involved expensive items, and relied on trust rather than verification. Store associates had no tools to confirm identity beyond a glance at an ID card. Fraudsters knew it, and they exploited it relentlessly. The retailer needed a solution that could verify identities in seconds, scale across nearly 2,000 locations, and integrate into the existing point-of-sale infrastructure without disrupting operations.
Verification Without Disruption
1Kosmos introduced identity verification directly into the checkout workflow. When a Pro customer requests equipment rental or initiates a high-risk transaction, the associate uses 1Kosmos IDV to verify identity in real time. The process is fast: the customer presents their ID, the system authenticates the document and performs liveness detection, and verification completes in seconds. If the identity checks out, the transaction proceeds. If not, the system flags it for review. No dedicated hardware. No separate terminals. No delays that would frustrate contractors on tight schedules. The verification happens inline, as a natural part of the checkout process.
Pilot to Production in Record Time
The retailer launched with a pilot covering 500 stores. The results were immediate and undeniable. Fraud dropped by more than 75% in the targeted scenarios, and in a single month, the system prevented $40 million in losses across the pilot locations. That success accelerated the rollout. Within months, the solution expanded to all 1,800 stores nationwide. The system now handles tens of thousands of ID verification sessions every week, processing them seamlessly alongside normal business operations.
Monitoring and Evolution
Deployment at this scale required dedicated monitoring and support infrastructure. The 1Kosmos team worked through DNS conflicts, coordinated with IT to align deployment windows, and established real-time monitoring to ensure uptime across thousands of locations. The solution didn't stop at Pro desks. The retailer is now expanding identity verification to Buy Online, Pick Up In Store (BOPIS) transactions and credit-related fraud prevention, applying the same verification layer to new attack surfaces as they emerge.
Fraud Prevention as a Competitive Advantage
What began as a defensive measure became a business enabler. The retailer can now serve high-value customers with confidence, knowing that identity verification protects both the business and legitimate contractors from fraud. Store associates have a tool that's simple to use and fast enough to keep pace with busy counters. Fraudsters face a barrier they can't easily bypass. And the retailer gained control over a problem that was costing them millions every month. Identity verification didn't slow down operations. It made them more secure, more reliable, and more scalable. The fraud crisis became a fraud solution, and the business kept moving.
