Identity Verification: Data is the Differentiator
As fraudsters become more sophisticated and their techniques change1, lenders and service providers understand that to protect their customers and their businesses more comprehensive identity verification is necessary. In a world competing on customer experience—one-click ordering, instant payments, same-day delivery—speed and convenience are expected. How can enterprises deliver on both fraud protection and consumer expectations?
Mobile identity proofing is one method that can be used to help authenticate individuals while preserving the customer experience. This technique allows consumers to populate an account enrollment form by capturing an image of their driver license (or other government-issued ID) with a mobile device to help streamline the digital application process.
To provide comprehensive authentication, mobile ID proofing must follow a data-driven strategy that authenticates both the document and the identity asserted on the document, or potential fraudsters may slip through screening processes.
We see the importance of analyzing individual identity elements first-hand through our ID Network®— one of the nation’s largest networks of cross-industry consumer behavioral data.
ID Analytics examined the data from an applicant at a wireless service provider and discovered that the driver license number extracted from the barcode on the back of the license was used to conduct 40 transactions by seven unique identities. These identities had different sets of personally identifiable information, different photos, and were generated across five states using the license format of each issuing state.2
In this instance, the consumer passed the provider’s screening process because their driver license conformed to all known templates for the issuing state.3 Unfortunately, the wireless provider didn’t have the additional identity information that provided a more complete picture of the applicant. Had the enterprise been armed with that information at the time of application, the application would not have moved forward.
This example demonstrates the importance of analyzing both the document and the identity to assess whether the asserted identity elements indicate suspicious behavior and or have a history of application fraud.
To learn more about how your enterprise can safely leverage mobile identity proofing that balances a positive customer experience with comprehensive identity verification download our white paper, Strengthening Photo Capture for Lower-Friction Authentication.
Aaron Kline is the Vice President of Product Management at ID Analytics
1. The Chicago Tribune, http://www.chicagotribune.com/business/sns-201702101900–tms–savagectnts-a20170210-20170210-column.html (accessed January 24, 2018).
2. 2018 ID Analytics driver license repository data analysis study.