The fight against fraud has reached a critical juncture. The pandemic drove a huge increase in digital commerce, which unfortunately also gave a boost to online fraud. According to Aite-Novarica Group, U.S. businesses alone are projected to lose $635 billion in 2023 to identity fraud, an increase of 26% since 2019.
That’s why smart leaders are focusing their efforts on shoring up their online identity proofing processes. But identity proofing goes beyond simply checking the user’s ID. To keep criminals off your platform, you need to perform a variety of checks to determine:
- The ID is real and valid, not altered or a synthetic ID
- The person you’re onboarding is the same as the person on the ID
- The person holding the ID is physically present during the transaction and not a spoof
- Their stated address exists and they actually live there
- After onboarding, the person returning to your platform is the same person you onboarded
In addition to confirming the person’s identity, you also need to make sure they’re someone you want to transact with by assessing their risk to your business. There are many different risk signals you can use, such as checking their device, phone number and email address to see if there’s a history of it being used in fraudulent activity. The risk signals you use depend heavily on your industry, customer base, geography and other factors unique to your business.
To minimize fraud losses without driving away your good customers, you need to perform the right checks on the right people at the right time. But if you’re using multiple point solutions to run all these checks, it’s nearly impossible to orchestrate all of it in any kind of logical, dynamic way.
That’s why companies are turning to end-to-end orchestration platforms like the Jumio KYX Platform. With no-code orchestration and access to over 500 data sources from a single API, you can design workflows that meet your exact business needs and ensure your good customers have a frictionless experience while fraudsters are kept out. Even more importantly, the self-service rules engine allows you to modify rules in real time to address emerging fraud trends that can pop up literally overnight.
Accelerate Digital Trust: The Power of End-to-end Identity Proofing Platforms
The platform approach also saves companies a tremendous amount of time and money. In our latest webinar, David Mattei of Aite-Novarica Group explained that the efficiency and accuracy gained by using a platform is so essential that 82% of fintechs they’d polled said integrated solutions lead to lower fraud losses. Gone are the days when you must evaluate, buy, integrate and maintain dozens of different solutions and then try to orchestrate and consume their information to get a clear picture of a user. With the integrated platform approach, customers work with one vendor, sign one contract, configure and maintain only one implementation, and get access to all the functionality they need from one API.
Furthermore, the Jumio KYX Platform provides a single, consolidated risk score from all the various risk signals. This drastically simplifies your ability to drive workflow logic, get a yes/no decision and easily apply a risk-based approach to your business throughout the entire customer lifecycle.
To learn more about how the platform approach can transform your business, check out our ebook, Digital Trust Throughout the Customer Journey.