How to enable liveliness checks during customer onboarding

Introduction

Identity fraud remains one of the biggest challenges in digital lending.

As more lending operations move online, fraudsters continue to develop sophisticated ways to bypass onboarding checks using stolen identities, manipulated documents, fake selfies, or impersonation techniques. For lenders, this can result in fraudulent loan disbursements, increased defaults, compliance risks, and financial losses.

This is why strong identity verification processes are essential.

One of the most effective ways to improve onboarding security is through liveliness checks.

Liveliness checks help confirm that a borrower is physically present during onboarding and not using a static image, manipulated recording, or stolen identity. By requiring users to complete guided facial movements during verification, lenders can strengthen customer authentication and reduce fraud risks significantly.

At Lendsqr, liveliness checks can be enabled directly from your security settings, allowing lenders to introduce an additional layer of verification during onboarding.

Once activated, new customers will be required to complete the verification process using a predefined sequence of facial actions. Existing customers who have not completed the check may also be prompted to verify themselves.

In this guide, you will learn how liveliness checks work, why they matter for lenders, how to enable them, how to configure the verification sequence, and where to review customer verification videos.

What is a liveliness check?

A liveliness check is an identity verification process that confirms a customer is physically present during onboarding.

Unlike traditional photo verification, which may rely on static images, liveliness verification requires borrowers to complete real-time actions using their device camera.

These actions may include movements such as:

• Looking left
• Looking right
• Smiling

The goal is to confirm that:

• The borrower is a real person
• The person is physically present
• The identity verification is not being spoofed
• Static photos or fake recordings are not being used

This makes it harder for fraudsters to manipulate onboarding systems using stolen credentials or edited media.

For lenders, this creates stronger confidence in customer verification and reduces the likelihood of fraudulent borrower accounts.

Why liveliness checks matter for lenders

Digital lending often involves remote onboarding, meaning lenders may never physically meet their borrowers.

While this improves convenience and scalability, it can also increase fraud exposure if proper verification measures are not in place.

Without liveliness checks, lenders may face risks such as:

• Identity theft
• Synthetic identity fraud
• Fake borrower accounts
• Account impersonation
• Increased default risks
• Regulatory concerns

For example, a fraudster may attempt to onboard using another person’s information, stolen identity documents, or manipulated selfies.

A liveliness check helps reduce this risk by requiring real-time human interaction during verification.

For lenders operating high-volume onboarding systems, this added layer of protection can significantly improve portfolio quality and reduce bad loans tied to fraudulent accounts.

Read further: Introduction to KYC

How liveliness checks work on Lendsqr

When liveliness checks are enabled, borrowers are prompted to complete a verification sequence during onboarding.

Instead of simply uploading a profile image, customers must perform actions requested by the system.

Depending on your configured settings, this may include actions such as:

• Looking left
• Looking right
• Smiling

The system records the verification process and uses it as part of customer identity validation.

Lenders can customize the order in which these actions occur, allowing flexibility in how the verification experience is structured.

For example, a lender may decide to require users to:

1. Look left
2. Smile
3. Look right

Or any other preferred sequence.

Once completed successfully, the onboarding process continues.

Relevant permissions

Before enabling liveliness checks, ensure you have the required access level.

Typically, users may require:

• Access to system settings
• Permission to modify system configurations
• Security settings access
• Admin or super admin privileges

If you are unable to access these settings, contact your organization administrator.

How to enable liveliness checks

Follow the steps below to activate liveliness checks in your Lendsqr admin console.

Step 1: Log in to the admin console

Start by logging into your Lendsqr Admin Console using your credentials.

After successful login, you will be redirected to your dashboard.

Step 2: Open settings

Navigate to the top-right corner of your screen.

Click the Settings icon.

This section contains system-wide configurations that affect how your lending platform operates.

Step 3: Open system configurations

Under System Settings, select System Configurations.

This section allows admins to manage important operational and security-related settings.

Step 4: Navigate to security settings

Inside the system configurations menu, click Security Settings.

This page contains various security controls used to strengthen customer verification and platform protection.

Step 5: Locate the liveliness check setting

Scroll down through the settings page.

If necessary, use the pagination controls at the bottom-right corner and click Next Page until you locate the Enable Liveliness Check setting. By default, this setting is disabled.

Step 6: Edit the setting

Click the More Options button beside the setting.

From the dropdown menu that appears, select Edit.

This opens the configuration window for the setting.

Step 7: Enable the feature

Check the button beside True.

This action activates liveliness verification for onboarding.

Click Save.

Step 8: Confirm activation

After saving, click Confirm, and then Finish to complete activation.

Once this process is completed successfully, the system will begin applying liveliness checks to customer onboarding.

How to configure the liveliness check sequence

After enabling the feature, the next step is configuring the order in which customers complete their verification actions.

This determines the sequence borrowers follow during onboarding.

Step 1: Stay on the security settings page

Remain on the Security Settings page after enabling liveliness checks.

You will find additional settings related to liveliness verification.

Step 2: Locate liveliness check mode sequence

Find the Liveliness Check Mode Sequence option. This setting controls the order of verification actions.

Step 3: Choose your preferred sequence

Select the order in which users should complete the actions.

Available options include:

• Look Left
• Look Right
• Smile

Arrange them in your preferred order.

For example:

1. Look Left
2. Look Right
3. Smile

Or:

1. Smile
2. Look Left
3. Look Right

The sequence you choose determines how customers complete onboarding verification.

Step 4: Save your changes

Once satisfied with your preferred sequence, click Save. Your liveliness verification flow is now configured.

What happens after enabling liveliness checks?

Once activated, the system automatically applies liveliness verification during onboarding.

New customers

All newly registered borrowers will be required to complete the liveliness check process before onboarding can be completed.

The verification sequence shown will follow the order you configured.

Existing customers

Customers who signed up before liveliness checks were enabled but have not completed verification may be prompted by the system to complete it.

This helps improve security across your borrower base over time.

How to review liveliness check videos and statuses

Lenders may occasionally need to review completed verification records.

This can be useful for:

• Fraud investigations
• Compliance reviews
• Customer verification concerns
• Manual account reviews

To view liveliness verification details:

Step 1: Navigate to the customer page

Open the Customer Page inside the admin console. Search for the borrower whose verification you want to review.

Step 2: Review customer verification records

Locate the customer profile and review:

• Liveliness check status
• Recorded verification videos
• Identity verification details

This visibility helps lenders investigate suspicious onboarding activity when necessary.

Read further: Security checks when onboarding customers

Use cases for liveliness checks

Preventing identity fraud

Lenders can reduce cases where fraudsters attempt to onboard using stolen identities or manipulated profile photos.

Strengthening KYC processes

Liveliness checks improve identity assurance during onboarding, particularly for fully digital lending businesses.

Supporting compliance requirements

For lenders operating in highly regulated environments, stronger identity verification may support internal compliance standards.

Reducing bad loans from fake borrowers

Improved verification reduces the likelihood of fraudulent borrowers receiving loan disbursements.

Best practices

• If you expect high onboarding volumes, activate stronger identity verification early to reduce fraud risks.
• Choose a sequence that is simple for borrowers to complete while still maintaining strong verification standards.
• Frequent failed liveliness checks may indicate suspicious activity or onboarding friction.
• For high-risk borrowers or unusual loan activity, review liveliness recordings as part of internal investigations.

Frequently asked questions

What is a liveliness check?

A liveliness check is a verification process that confirms a borrower is physically present during onboarding.

Why should lenders enable liveliness checks?

Liveliness checks help reduce fraud, improve onboarding security, and strengthen identity verification.

Will all customers be required to complete liveliness checks?

New customers will be required to complete the process after activation. Existing customers who have not completed verification may also be prompted.

Can lenders customize the verification sequence?

Yes. Lenders can choose the order of actions such as looking left, looking right, and smiling.

Where can I view liveliness verification videos?

Verification videos and statuses can be viewed from the customer page inside the admin console.