I brainstorm with a number of companies
on a daily basis regarding their fraud prevention and compliance needs.What I encounter time and time again is
that companies are using an antiquated identity verification and authentication
process that is providing less than favorable results.For example, there are several companies
in e-commerce that require consumers to scan and submit a copy of their drivers license before allowing
the consumer to complete his or her purchase.In many cases, this is due to the companys compliance
requirements with Know Your Customer legislation, or they are looking to prevent fraud by
trying to authenticate that Jane Doe really is Jane Doe.
Through this process, the company
typically loses money in a few different ways.One example is that the company requires more man hours to
fight through the manual review process.At the same time, many customers are frustrated by the hassle and
lengthy process and decide to move their business elsewhere.While this fraud prevention system can
be beneficial in mitigating fraud, it doesnt mean that the license provided
belongs to them. There is a better way.
Ill be the first to say that no
solution is perfect.There are
instances when manual review is necessary, but having the right fraud prevention systems
in place on the front end can help to eliminate headaches and protect the
companys bottom line.Several
companies have chosen to implement a real-time solution with identity
verification and authentication through Knowledge Based Authentication questions.The result
has provided them with a fraud mitigation and compliance service that provides the
company with more time and more profitability.
[Contributed by Shea Allen, Account
Specialist]
