By PYMNTS | October 25, 2026
An identity check that stops a fraudster protects a business. One that blocks a legitimate customer costs it a sale. As automated agents handle more activity, enterprises have to establish who an agent represents and what it’s authorized to do, while keeping ordinary transactions moving.
The PYMNTS Intelligence report, “How Enterprises Can Build a ‘Know Your Agent’ Defense: Digital Identity Verification in the Age of Bots,” produced in collaboration with Trulioo, examines those demands. It draws on a survey of 350 leaders in compliance, risk management, fraud and related functions at global companies.
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Know your agent, or KYA, extends verification to automated agents acting for people or businesses. The report connects that work to know your customer and know your business checks, which establish the identity of the person or company behind an agent.
- Bot management is a widespread challenge. Some 89.5% of surveyed organizations say managing bot traffic is challenging, and 52.3% report that bot traffic increased over the 12 months through September 2025. Businesses must distinguish authorized automation from activity intended to steal credentials, create fake accounts or commit fraud. Blocking every bot would also block legitimate agents working for customers or suppliers.
- Larger firms report more agent-related incidents. Among respondents facing threats associated with their customer or business verification procedures, 57.1% of companies with at least $1 billion in annual revenue report incidents or losses involving adversarial bots and agents. The share is 32.4% for firms in the $50 million to $250 million revenue group, a gap of 24.7 percentage points. The comparison covers reported incidents or losses; it doesn’t measure the amount lost or establish that company size causes the difference.
- Legitimate transactions also encounter friction. Companies with at least $1 billion in revenue report an average false-positive rate of 3.3% in digital transactions, compared with 2.7% for the $50 million to $250 million group. A false positive mistakenly flags legitimate activity as suspicious. For payment providers and businesses accepting payments, reducing that error means fewer valid transactions sent into reviews or blocked by verification controls.
The report recommends checking authority throughout an agent’s activity. Its five-layer framework combines verification of the person or business behind the agent, specific permissions, agent credentials, continuous monitoring and behavioral checks. For a purchasing agent, verifying the buyer’s identity is only part of the task. The business also needs to establish the agent’s spending authority and monitor whether its actions remain within that permission.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.