Lack of Perfection Does not Equal a Call to Inaction

  • Fraud Prevention

There has been discussion lately regarding dynamic knowledge based authentication (KBA) and the possibility for fraud still to occur where the data sources used to generate the out of wallet questions (i.e. credit bureaus, utilities) have been breached.

If youre not familiar with dynamic KBA, it is a method for verifying the identity of an individual by asking questions that only that individual should be able to answer. These questions are often referred to as out of wallet questions, as having access to an individuals wallet or purse would not be sufficient to provide the correct answers. At EVS we use a combination of public and private data sources to generate these questions internally, making it even more difficult for questions to be answered by anyone other than the individual they claim to be.

Dynamic KBA is not a perfect solution, and cannot guarantee preventing 100% of identity fraud, but the reality is that there is no solution that can. EVS has seen clients decrease fraudulent enrollments by over 99% by implementing KBA as part of their enrollment process.

The lack of a perfect solution should not be taken as a reason to avoid implementing a fraud prevention solution. Every fraudulent transaction has an impact for both the business and their customers, and every fraudulent transaction avoided likewise makes a difference.


Scott Million