Third Party ID Verification Vendors are More Important Than Ever

  • Identity Verification, Security

As financial institutions gain more money to put towards fraud prevention measures, they need to take caution to ensure that these funds are put to good use. As discussed in the blog Increased Funding for Fraud Prevention: Whats the Allocation? many banks have already planned out how they are going to distribute the increased budget. Experts such as Shirley Inscoe believe that banks are not allocating the new budgets in a way that will survive the long term goal. Many companies are putting money towards resources that will help them comply with the FFIEC guidelines, but do no support ongoing security. Even though this helps with meeting standards, it does not enforce practices that make security a priority. Banks may only be investing in solutions that solve short-term fraud prevention goals because they feel overwhelmed or too busy to look into a deeper strategy.

It is important for organizations to take the time to think about their security measures as a long-term priority that affects all stakeholders. They need to ask themselves is this going to help my company in 5 years? 10? before investing in a compulsive solution that may only help prevent fraud for a few months or years. Michael Wyffels stresses the importance of fraud detection over the obsession of fancy technology. Part of preventing fraud is detecting it. Both experts favor the use third party and out-of-brand vendors that provide ID verification and authentication. Wyffels believes third party security processors help to detect cross channel fraud and Inscoe urges banks to find vendors that can help detect multiple types of fraud before it affects multiple channels. ID verification and authentication companies help prevent fraud by detecting it early on. To help strengthen long-term security measures, make sure your organization has a strong relationship with an ID verification and authentication company that will help make your security their priority.

[Contributed by: EVS Marketing]