Keeping the company protected from fraudsters is vital for data security, customer trust, and due diligence for regulatory compliance. The prevalence of crimes like fraud and identity theft pushes enterprises to shore up their identity proofing capacity to ensure they are only interacting with legitimate individuals.
Illegal transactions have costly consequences for firms. PwC’s respondents for its 2020 Global Economic Crime and Fraud Survey reported fraud losses that amounted to a total of about $42 billion. Apart from economic damage, these crimes can also damage the reputation of firms, leading to customer distrust. When companies lose their clients, it can be challenging to recover and will take significant time.
In most cases, companies that implement outdated security checks, such as Knowledge-Based Authentication (KBA), are susceptible to fraud risks. The information required in this identification method can easily be obtained by someone other than the customer and used for illicit motives.
Enterprises must deploy knowledge-based authentication alternatives that are more efficient and effective in blocking fraudulent attempts while providing real customers with streamlined services. They must leverage modern technology, such as biometric identification solutions, to distinguish fraudsters from real persons.
Thanks to technological innovation, biometric identity verification can be performed using mobile devices. Many Identity as a Service (IDaaS) providers’ products can be easily integrated into mobile phones, tablets, and laptops, eliminating the need for extra hardware and complex software.
For example, a customer can take a selfie with their smartphones and complete the facial biometric identity proofing process with an anti-spoofing test to ensure their real-time presence. IDaaS companies also provide automated solutions for identity document authentication where customers can take a photo of their valid IDs and submit the document image for review.
By leveraging advanced identity proofing technology, companies can better protect their customers’ valuable information and safeguard their systems. For more information on identity verification and identity document authentication, an infographic from Ipsidy is provided below.