Automation in ID Verification

  • Identity Verification

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]