A Faceless Society Needs KBA

  • Identity Verification, Internet Fraud

If youre like me, there are very few times that youll be found inside of a bank or purchasing a big ticket item in a store. Its true there are definitely people that set up their tents for black Friday deals, and I have yet to see the day that my grandmother has made an online purchase. Although that may be the case, for most people, online transactions are becoming very commonplace. From EBay to online banking, the Internet has become a necessity in our day to day lives.

The real question is how do we combat identity theft in a faceless society? What is going to keep someone from stealing my wallet or my credit card and essentially become me to an online merchant? If someone has stolen my wallet, they may have my current address, phone number; credit card info and God forbid my social security number. They will be able to answer some basic questions when prompted. So what keeps this individual from committing identity theft? Knowledge Based Authentication.

A number of businesses from ecommerce, payday lenders, payment processors, mortgage companies, investment firms and numerous others have seen the need for KBA. Knowledge based authentication is a series of out of wallet questions that only the true identity holder can answer. Although someone may steal a consumers wallet, they wont know that the individual lived at 110 Fraud Street 10 years ago or that their old roommates name was Jane Doe. This type of added security is essential.

Knowledge based authentication is the glue that holds identity verification together. It saves businesses time and money by establishing that an individual is who they claim to be at the point of sale. At the same time, it provides reassurance to consumers that merchants take their protection seriously and added piece of mind that it will be that much more difficult for a fraudster.

This is why Electronic Verification System provides an all in one solution with KBA. It isnt something that should be added to the identity verification puzzle. It is an essential piece thats necessary to combat identity theft.

[Contributed by Shea Allen, Verification Specialist]