Trust is hard to earn and easy to lose. According to a recent McKinsey report, 87% of respondents said they would not do business with a company if they had concerns about its security practices. But protecting users against fraud and bad actors is becoming increasingly difficult. In fact, 2021 was the first year successful online fraud attempts outnumbered those prevented.
Online fraudsters continue to adapt and evolve, and what you were doing even a few years ago to onboard and protect customers may no longer be enough. As the world rapidly moves from offline to online and more of our lives, transactions and economy live online, the prize for fraudsters grows larger.
Verifying Digital Identity
Telesign recently hosted an expert panel discussion on the latest fraud prevention methods via enhanced digital Identity Verification (IDV).
In the one-hour session, Telesign Chief Marketing Officer Kristi Melani moderates a discussion with featured speakers Andras Cser, VP, Principal Analyst, Forrester Research, and Soups Ranjan, CEO, Sardine, on the current identity fraud landscape and what organizations must do to identity and block fraud before it happens.
About the featured speakers
- Andras Cser is a leading expert on identity management, access management, user account provisioning, entitlement management, federation, privileged identity management, and role design and management. Andras covers cloud security and enterprise fraud management, which have many synergies with identity and access management when an organization needs to protect against risk and wants to manage fraud appropriately. He helps clients develop enterprise strategies for creating business value through identity management, cloud security, and fraud management. Andras outlines trends in Identity Verification (IDV) and its importance in digital transformation.
- Soups Ranjan founded Sardine to remove the delays and risks associated with fund settlement in fintech. Previously, Soups led the risk and data science teams at Coinbase and Revolut and built their fraud prevention and compliance stack from scratch. Today, companies around the world depend on Sardine to safely make payments from banks and cards to digital wallets and crypto. Soups discusses fraud techniques he has observed in his career, along with the elements you need to analyze to identify and verify users on your platform.
Key takeaways from the webinar
- IDV is different than other IAM methods. IDV is where Identity and Access Management (IAM) and fraud management intersect. While two-factor authentication remains a necessary, critical building block of fraud prevention, companies must layer IDV solutions to protect against bad actors and keep their customers safe and coming back (Andras Cser).
- Link online and real-world identity. Today, identity management requires link analysis of online and real-world identities, tying together information such as physical address and date of birth with browser versions and cookies for effective risk scoring (Andras Cser).
- Most identifying questions are no longer defensible. Bad actors can provide answers to most routine questions to verify identity (favorite color, best friend, etc.) via social media and other sites. Use direct sources for questions that are not available through public records or internet scraping (Andras Cser).
- Fast track your good customers and focus on potential bad actors. To prevent customer fatigue and onboarding friction while providing a trusted customer experience, you need a dynamic, risk-based assessment to detect fraudulent threats (Andras Cser).
- Fraudsters are always a step ahead. Fraud attempts are complex and multifaceted, so your protection must be complex and multifaceted. There is no silver bullet. Make sure your prevention methods stop fraud before it starts by using solutions tailored to your organization and customers (Soups Ranjan).
The identity revolution is here. Are you ready?
The future of fraud promises a mix of old and new tactics, including password theft, phishing attacks, social engineering, and SIM swaps, so it is critical that the security and possession checks you are doing now are for the right person. If not, you could be introducing bad actors into your transaction ecosystem, where they can destroy your relationship with your customers.
Watch today to see what you need to know to gain and maintain customer trust, while keeping an eye on what bad actors may try soon.