Identity theft is becoming one of the fastest-growing crime in the U.S. as numerous data breaches and sophisticated fraud schemes make it easy for criminals to obtain consumer data for fraudulent purposes. Digital technology combined with self-service gives consumers choice, convenience, and empowerment, however, it exacerbates customer identification and verification issues and increases fraud risk when transacting business.
Consumers want to use digital and physical channels to manage their finances and meet their goals. This means financial institutions must have a complete strategy to serve these needs and address the risk exposure by blending the right technology innovation, risk foundation, and relevant operational functionality to align with customer experience and service.
Risk reductions goals for solutions include:
- Identifying implicit and explicit prospects.
- Authenticating customers using the latest security standards.
- Verifying customers using available data sources to ensure they are who they say they are.
- Enforcing due diligence and Know Your Customer (KYC) policies and procedures.
- Measuring risk and adjudicating potentially fraudulent activities.
Having a 360-degree customer authentication and fraud prevention strategy, complete with technology, enables financial institutions to satisfy customers, create new opportunities, and solve the issue of fraud and risk. A complete strategy must also encompass digital and physical channels to provide an Omni-channel customer-centric delivery strategy integrated with customer authentication and fraud prevention. These types of solutions can quantify and predict customer risk with an array of progressively stricter best practices aligned to the delivery channel.
For more information, download the Using Analytical Software to Create Better Business Outcomes white paper.
