According to PwC’s 2020 Global Economic Crime and Fraud Survey, many enterprises suffer from fraud losses either directly or through expenditures on fines and remedies. Their respondents reported a staggering $42 billion total fraud losses in the last two years. Moreover, the study also revealed other non-quantifiable costs such as reputation damage, lost market position, low employee morale, customer, and opportunity losses.
As fraud cases continue to rise, enterprises across various industries must shore up their capacity to detect fraudulent attempts and prevent bad guys from getting into the system.
While different scams have been around for years, newer methods are often harder to catch due to their complexity. More and more grifters turn to modern types of fraud like synthetic identity because they often go undetected for a long time and provide a high payout.
This latest scamming method works by putting together an amalgamation of real and fake, slightly modified, or completely fabricated information to create a fictitious identity. Afterward, the fraudster will use it to create various accounts to start using a company’s services. It can take months or even years to uncover this type of fraud.
Institutions that fall victim to this type of fraud usually utilize weak identity verification procedures at onboarding. They must replace these inefficient processes with advanced tools like biometric identification solutions to effectively authenticate that their client is who they claim to be. They must protect their systems against criminal infiltration right from the start.
Many are already leveraging products like mobile facial biometric identity proofing technology, which can be easily integrated into most camera-enabled mobile devices. It requires customers to take a selfie and provide a valid ID to prove that they are the true identity owner. It also employs additional features like anti-spoofing tests, such as asking the person to make certain gestures known only at the time of authentication.
Additionally, they must also ensure that the identity document provided by the customer is a genuine one. Fraudsters will try to trick the verification procedure by giving a counterfeit ID. However, manual checks are too slow and prone to human error. Firms must conduct an automated driver’s license authentication when an applicant presents it as a valid document to prove their identity.
Driver’s licenses are among the commonly used valid IDs in the US. They contain enough information about the person and have a photo that can be matched to their facial image captured during authentication. The customer can simply take a picture of their ID and submit it digitally for review.
An automated system harnesses the power of digital technology and utilizes trusted data sources to authenticate government-issued credentials. It matches the ID’s photo to known templates of specimen documents to identify if the provided ID possesses the security features unique to a genuine state-issued driver’s license.
Apart from protecting their network, organizations can also adhere to regulatory compliance as they deploy these modern identity proofing methods. To know more about the importance of identity verification and identity document authentication, an infographic from Ipsidy is provided below.