Increasing scrutiny from customers and regulators combined with increasingly scrupulous fraudsters means your online identity verification program must get real. Verifying the real life identity of your online customers is a growing concern and necessity of businesses across industries.
A number of solutions exist to help companies identify the true identity of their online customers. If you’re in the market, you’ll soon discover that not all solutions are created equally in terms of fraud detection and deterrence, compliance, and user experience.
Consider knowledge-based authentication (KBA), as one example. A formerly widely accepted verification method, the KBA system is straightforward and offers a fairly positive user experience due to its simplicity: it verifies online identity by asking users specific security questions. However, is also very vulnerable to data breaches due to the ability for fraudsters to purchase personal data for impersonation, as shown by recent events. Look to the latest Equifax data breach as one example of KBA gone wrong, impacting at least 148-million people.
As you look for the right online identity verification solution for your customer ID proofing, it’s critical to perform rigorous tests to ensure the solution you choose is accurate, meets compliance requirements, and offers a positive user experience. The last point is key, as online identity verification is found to be a critical deciding factor as to whether customers complete a sign-up process.
In the online gaming industry, for example, a recent study found 1 in 4 online gaming customers reported they were discouraged from opening an account due to a negative registration experience. This trend is also witnessed in other industries, such as banking. In fact, an overly long account opening process was found to be a key source of friction and was cited as the top reason for abandonment among online bankers.
How then can companies test out vendor solutions to meet their needs and those of their customers? Our latest infographic offers 14 ways to perform a competitive bake-off and rigorously evaluate the effectiveness of different vendors. To learn even more, download our Buyer’s Guide to Online Identity Verification Solutions.