Eliminating Grant Fraud and Instant Beneficiary Setup with Digital ID

A UK-based farming charity needed a faster, more secure way to distribute grants and relief payments. Their manual process was time-consuming, error-prone, and susceptible to fraud. They turned to OneID®’s open banking-based digital ID checks for a multi-pronged solution.

The charity has used OneID®’s document-free ID verification, which streamlines and speeds up beneficiary onboarding, for three of its key grant campaigns over 18 months and is preparing for the fourth campaign. Across these initiatives, thousands of farmers have received payments swiftly and securely.

Why is manual verification not fit for onboarding grant beneficiaries?

The charity’s traditional application and verification methods required beneficiaries to manually fill out lengthy forms, which were then reviewed manually by its staff. This manual process often led to:

1. Data entry mistakes and missing information
2. A high administrative burden on staff
3. Increased potential for fraudulent or duplicate applications
4. Delays in payments reaching the right people

It’s not just a theoretical risk. Industry research highlights the scale of the problem — according to the Fraud Advisory Panel Charity Fraud Report, 15% of UK charities reported experiencing grant fraud in the past year. This includes cases where funds were diverted or credited to the wrong accounts, whether through fraudulent activity or administrative error.

Direct Credit and Onboarding by OneID: Ensuring grants go to those who they should

By setting up Direct Credits using OneID®’s bank-verified identity data, the charity transformed its beneficiary verification and payment process.

Applicants could now verify their identity instantly using their online banking account or a mobile banking app. In just a matter of a few clicks, individuals could prove their identity and auto-populate their verified bank account details to which the grant could be credited.

This meant applications that once took several minutes — and required manual review — could now be completed securely in seconds. The internal team gained back valuable time while maintaining compliance and significantly reducing fraud risk.

How did bank-verified digital ID enhance the charity's grant process?

1. Efficiency: Automating verification freed up substantial administrative resources, allowing the charity to process thousands of applications faster and redirect staff efforts to community support.
2. Eliminating the Chances of Fraud: Bank-verified data ensured that funds were paid directly to verified beneficiaries — drastically reducing the risk of grant fraud and misdirected payments.
3. Inclusivity: The digital solution proved accessible and effective across a broad demographic — from individuals in their 20s to those in their 70s and even 80s — demonstrating both ease of use and trust in the process.
4. Accuracy and Compliance: OneID® enabled the charity to run secure, compliant campaigns with greater accuracy and transparency, aligning with both data protection and financial regulations.
5. Digital Transformation: Through OneID®, the organisation has evolved from manual processing to a modern, scalable approach that supports ongoing campaigns and future initiatives.

Want to know more about the implementation?

To learn how OneID®'s digital ID verification brings trust and efficiency to organisations, and more importantly, how insights from this implementation can help your business, drop us a line. We'd love to talk you through it.