Digital fraud is evolving faster than ever. From synthetic identities to AI-powered scams, financial institutions now face a threat landscape that is not only more sophisticated but also more varied. Static, monolithic fraud detection systems can no longer keep pace. “A modular system gives you scalability, configurability, and the ability to audit each component independently,” says Chris D. Sham, COO and VP of Global Sales at faceESign. “By layering these capabilities, you create a secure, seamless process that can adapt to whatever threats or compliance needs come next.”
Sham leads operations at faceESign, a company redefining how digital authentication is built and deployed. His focus is on modular architecture, a design philosophy that breaks fraud detection into interchangeable, adaptable components. Flexible, integrated systems have become a strategic imperative, allowing financial institutions not only to respond to fraud but to anticipate and prevent it while keeping pace with regulatory demands and rising user expectations.
Building a Plug-and-Play Security Framework
At the core of faceESign’s innovation is a modular fraud detection system built with developers in mind. Sham explains that each module, whether for liveliness detection, ID capture, or behavioral biometrics, can operate independently or in tandem, triggered by logic-based events and managed through API flags.
“It’s event-centric for validation,” he says. “Whatever process a fintech company may need, they can plug it in.” This means that faceESign’s tools aren’t standalone products; rather, they are components that embed seamlessly into a client’s existing workflows, enabling real-time verification without redirecting users or disrupting user experience.
Designed for integration, the architecture offers white-label flexibility. Financial institutions can incorporate faceESign’s technology into their own platforms, maintaining brand continuity while benefiting from advanced security. “We designed our system to be white-labeled, so financial institutions can use our technology as part of their workflow and platform without anyone realizing it’s not their own,” Sham explains.
Security Without Compromise
While modularity implies flexibility, Sham is adamant that it should never come at the expense of security. The platform’s infrastructure reflects that stance. “Our infrastructure is what the government uses,” he says. “We are on Amazon AWS, and all of our data is captured and stored securely on their cloud.”
Beyond choosing robust platforms like AWS and MongoDB, the team at faceESign took an uncommon step to minimize vulnerabilities: they wrote the code themselves. “We coded everything from scratch, one line at a time,” Sham says. “That adds another security layer because you’re not relying on third-party software where you’re unaware of what’s under the hood.”
This direct control ensures that modules such as liveliness detection, ID upload, and video-audio proofing are not only interoperable but also deeply embedded into the system’s own secure backbone. “All the moving parts, the liveliness, the ID capture, the video, they’re rewritten into our code, not bolted on,” explains Sham.
Following the Compliance Curve
Sham sees regulatory compliance as a validation of technical integrity. faceESign has built its stack to meet stringent standards, including GDPR, SOC2, HIPAA, and the E-Sign Act.
“As companies move into the digital space, governments are creating laws and compliance processes that require better screening of individuals. That’s where we tie in,” he says. It’s an important distinction in a time when digital transformation is not only driven by convenience but regulated by necessity.
Compliance is particularly crucial in sectors seeing rapid innovation. “Wealth management companies, banking, insurance, and crypto are the four biggest areas of growth,” Sham says. With crypto in particular, regulatory scrutiny is intensifying. “Crypto is taking off massively. Companies in this space need KYC tools as they become more digital and compliance becomes a bigger focus.”
Future-Proofing Financial Security
The shift toward digital-first operations is reshaping what financial institutions expect from fraud prevention tools. Traditional verification systems fall short in dynamic environments like decentralized finance and embedded banking. faceESign’s modular approach addresses this need by empowering clients to evolve without rewiring their security frameworks. Chris Sham demonstrates a keen awareness of how innovation must be coupled with accountability.
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