Tag: identity authentication

With cybersecurity threats on the rise, organizations are turning to token-based authentication as a secure and efficient solution to safeguard sensitive data and systems. Data breaches impacted 1.1 billion individuals in 2024, a staggering 490% increase from the previous year.1 Token-based authentication is a method of verifying a user's identity through digital tokens rather than traditional means such as passwords. These tokens are temporary and serve as access keys, allowing users to securely interact with systems, applications, and networks. The goal of token authentication is to strengthen security while improving the user experience. Instead of relying solely on static credentials (like passwords), which can be intercepted or stolen, leveraging a type of multi-factor authentication like tokens adds an additional layer of security by functioning as dynamic access credentials. How token-based authentication works Token authentication unfolds through a series of steps to ensure robust security. Here's a simplified breakdown of how it works in practice: User request and authentication: When a user attempts to log in, they provide their credentials (e.g., username and password). These credentials are verified by the authentication server. Token generation: After verifying the user's credentials, the server generates a token — a cryptographically secured string often containing information like the user's ID and permissions. Token sent to the user: The generated token is sent back to the user or their device to confirm authentication. Token usage for access: Now authenticated, the user uses the token to access the system or application. The token is passed along with each request to ensure the user is authorized to proceed. Token validation: Each time a token is presented to the server, its integrity and expiration are verified. If the token is valid, access is granted; if not, the session is terminated. Token expiration and renewal: Tokens are typically temporary and expire after a set period. Users must either re-authenticate or renew the token for continued access. This limits the time window during which a stolen token can be misused. Types of token authentication methods Token authentication comes in different forms to meet various use case requirements. Common types include: JSON Web Tokens (JWT) Lightweight, self-contained, and easily transferred between clients and servers, JWT is one of the most widely used token formats. It includes claims, which are bits of information about a user encoded within the token, such as roles and permissions. Example: A financial application uses JWTs to ensure only registered users can access private account data. OAuth tokens OAuth is an industry-standard authorization protocol that uses tokens to grant limited access to applications without revealing the user's credentials. It’s often used for third-party service integration. Example: When you log into an e-commerce platform using your Google credentials, OAuth tokens authorize access. Session tokens These are temporary tokens stored on the server to track authenticated sessions, commonly used in web applications to ensure secure browsing. Example: Online banking platforms rely on session tokens for secure user sessions. Refresh tokens Refresh tokens are designed to renew access tokens without requiring the user to log in repeatedly. They extend session durations while maintaining a high-security standard. Example: A subscription service app uses refresh tokens to maintain a seamless user experience without frequent logouts. Benefits of token-based authentication Token-based authentication offers several advantages that make it a preferred security measure for organizations of all sizes. Enhanced security: Tokens reduce the risk of breaches as they are temporary and encrypted. They’re also specific to sessions, applications, or devices, meaning unauthorized users cannot reuse stolen tokens effectively. Elimination of password reliance: Tokens reduce dependence on static passwords, which are often reused and susceptible to brute-force attacks. This bolsters an organization’s overall cybersecurity posture. Improved user experience: Token authentication allows for more seamless interactions by minimizing the need for repeated logins. With features like single sign-on (SSO), users enjoy convenient access to multiple platforms with a single token. Scalability: Tokens are flexible and can adapt to varied business use cases, making them ideal for organizations of all scales. For instance, application programming interfaces (APIs) and microservices can communicate securely via token exchanges. Supports compliance: Token-based authentication helps organizations meet regulatory compliance requirements by offering robust access control and audit trails. This is critical for industries like finance, healthcare, and e-commerce. Cost efficiency: While implementing token-based authentication may require an initial investment, it reduces long-term risks and costs associated with data breaches, system downtime, and customer trust. How Experian can help strengthen your authentication process At Experian, we recognize that strong security measures should never compromise the user experience. That's why we offer cutting-edge identity solutions tailored to meet the needs of organizations. Our tools allow you to integrate token-based authentication seamlessly into your systems while ensuring compliance with security best practices and industry regulations. Are you ready to take your business's security and user experience to the next level? Visit us online today. Learn more 12024-2025 Data Breach Response Guide, Experian, 2024. This article includes content created by an AI language model and is intended to provide general information.

Fraud-as-a-Service (FaaS) represents an emerging and increasingly sophisticated business model within cybercrime. In this model, malicious actors commercialize their expertise, tools, and infrastructure, enabling others to perpetrate fraud more easily and efficiently. These FaaS offerings are often accessible via dark web marketplaces or underground forums, streamlining and automating fraud processes, such as large-scale phishing campaigns. This enables the creation of convincing counterfeit websites and the distribution of bulk emails, allowing cybercriminals to harvest credentials and personal information en masse.   Organized cybercrime syndicates leverage account creation bots to establish hundreds of fraudulent accounts across various platforms, bypassing standard security protocols and scaling their illicit activities seamlessly. A fraudster no longer requires deep technical skills or detailed knowledge of complex verification techniques, such as liveness detection. Instead, they can acquire turnkey FaaS solutions that, for instance, inject pre-recorded video footage to spoof verification processes, enabling the rapid creation of thousands of fraudulent accounts.  The commoditization of fraud has effectively democratized it, lowering the barriers to entry. Previously accessible to a select few, FaaS has developed sophisticated techniques and is now available to a broader and less technically adept audience. Now, even individuals with basic computer skills can access these services and initiate fraudulent schemes with minimal effort.   Key tools in the FaaS arsenal  Central to the success of fraud-as-a-service is the ability to create fraudulent accounts while evading detection. This process can be alarmingly straightforward, even for companies adhering to industry-recognized best practices. Widely available programs, such as app cloners, enable fraudsters to generate multiple instances of the same application on a single device, modifying its source code to bypass security measures to detect such activities. The generalization of artifical intelligence (AI) and increased access to technology have provided cybercriminals with new tools to launch sophisticated scams, such as Pig Butchering and Authorized Push Payment (APP) scams.   Similarly, image injection tools facilitate the insertion of manipulated images to deceive verification systems, while emulators simulate legitimate device activity at scale, making detection more challenging. Techniques such as location spoofing allow fraudsters to alter the perceived geographical location of a device, thereby evading location-based security checks and allowing their scams to remain undetected.  Once fraudulent accounts are established, cybercriminals focus on monetizing their efforts. Industries like food delivery and ride-hailing are particularly vulnerable to promotional abuse. Fraudsters exploit promotional offers intended for new customers by using cloned apps, injected images, and emulators to create multiple fake accounts, redeem discounts, and resell them for profit. AI-driven automation and advanced communication technologies lower the barriers for these scams, enabling criminals to operate at a larger scale and with greater efficiency. This has made scams more pervasive and difficult for individuals and institutions to detect.  In the ride-hailing industry, these tactics are used to manipulate fare structures and incentives. Fraudsters operate multiple driver or rider accounts on the same device to earn referral bonuses and other promotional rewards. Emulators can simulate rides with fabricated start and end points, while location spoofing tools manipulate GPS data, inflating fares, and earnings. Such fraudulent activities result in significant financial losses for companies and degrade service quality for legitimate users, as resources are diverted from genuine transactions and logistical algorithms are disrupted.  The implications of FaaS for businesses  The commercialization of fraud poses a substantial threat to businesses, not only by democratizing fraud but also by enabling it to rapidly scale. . Fraudsters can experiment with multiple schemes simultaneously, sharing feedback and accelerating their learning curve. A single tool developed by one individual can be deployed by numerous bad actors to perpetrate fraud on a large scale, with remarkable speed. This ease of execution allows fraudsters to overwhelm companies with a barrage of attacks, maximizing their financial gains while exacerbating the challenges of fraud prevention for targeted organizations.  Developing a FaaS-Resilient fraud prevention strategy  To effectively combat fraud-as-a-service, businesses must adopt AI fraud strategies that mirror the operational sophistication of fraudsters. These cybercriminals treat their activities as profitable enterprises, continually optimizing their return on investment through scalable and adaptable tactics. By deeply understanding the methodologies employed by fraudsters, companies can develop more effective fraud prevention measures that disrupt fraudulent operations without inconveniencing legitimate users.  Proactive fraud prevention strategies are essential in countering FaaS tactics. Effective measures rely on robust data collection and analysis. Regular reviews of key performance indicators (KPIs) and velocity checks, which monitor the rate at which users complete transactions, can help identify irregular behaviors.  Passive signals, such as device fingerprinting and location intelligence, are also invaluable in detecting suspicious activities. By scrutinizing data related to app tampering or device emulation, businesses can more accurately determine whether a genuine user is accessing their platform or if a fraudster is attempting to bypass detection.  Given the dynamic nature of FaaS, adaptation is crucial. Fraud prevention strategies must evolve continually to keep pace with emerging threats. Advanced technologies offer nuanced insights into user behavior, enabling businesses to identify and thwart fraud attempts with greater precision. Moreover, cutting-edge risk monitoring tools can help avoid false positives, ensuring that legitimate users are not unduly impacted.  As fraudsters persist in innovating and refining their tactics, organizations must remain vigilant, stay informed about emerging trends, invest in advanced fraud prevention and detection technologies, and cultivate a culture of security and awareness. While it may be tempting to underestimate fraudsters due to the illicit nature of their activities, it is important to recognize that many approach their work with a level of professionalism comparable to legitimate businesses. Understanding this reality offers valuable insights into how companies can effectively counteract fraud and protect their monetary interests.  Learn more This article includes content created by an AI language model and is intended to provide general information.

Experian’s ninth annual report on identity and fraud highlights persistent worries among consumers and businesses about fraud, including growing threats from GenAI. In this report, we explore how the evolving fraud landscape is impacting identity verification, customer experience, and business priorities for the future. Our 2024 U.S. Identity and Fraud Report draws insights from surveys of over 2,000 U.S. consumers and 200 businesses. This year’s report dives into: Evolving consumer sentiment over security and experience Businesses’ investments to tackle growing fraud challenges Effective technology solutions to accurately identify and authenticate consumers The impact of GenAI on the fraud landscape   To keep pace with the evolving landscape, businesses will need to apply a multi-faceted strategy that leverages multiple types of recognition and security to stop all types of fraud while allowing real customers through. To learn more about our findings and perspective, read the full 2024 U.S. Identity and Fraud Report, watch our on-demand webinar, or read the press release. Download Now Watch Webinar Read Press Release

Gen Z, or "Zoomers," born from 1997 to 2012, are molded by modern transformations. They have witnessed events from post-9/11 impacts to the rise of the internet and the COVID-19 crisis. As early adopters of technology, their lives are intertwined with smartphones, online shopping, social platforms, cloud services, emerging fintech, and artificial intelligence. They are called “digital natives” as they are the first generation to grow up with internet as part of their daily life. Research generally indicates that this post-millennial generation values practicality, favoring financial stability over entrepreneurial pursuits. They appreciate communication tailored to them and often employ social media to cultivate their personal brands. As a generation growing up immersed in technology, they tend to choose digital interactions, seeking to forge robust, secure, genuine, and unconstrained digital experiences. The challenge of identity verification Identity verification presents a considerable challenge for Generation Z. According to a Fortune survey, close to 50% of this demographic regrets not opening financial accounts earlier, citing a lack of readiness to join the financial ecosystem by the age of 18. Consequently, this has given rise to "digital ghosts"—people with minimal or nonexistent financial histories who face challenges when trying to utilize financial services. The 2009 Credit Card Accountability Responsibility and Disclosure Act mandates that individuals under 21 need a cosigner or show income proof to get a credit card, hindering their early financial involvement. Moreover, conventional identity checks are becoming less reliable due to the surge in identity theft. Innovative solutions for verifying Gen Z Verifying identities and preventing fraud among Gen Z presents unique challenges due to their digital-native status and limited credit histories. Here are some effective strategies and approaches that financial institutions can adopt to address these challenges: Leveraging alternative data sources Academic records leverage information from higher learning institutions such as universities, colleges, and vocational schools. This data can be vital for authenticating the identities of younger individuals who may lack a substantial credit history. Employment verification retrieve data confirming the identity and employment status, especially focusing on Gen Z who are new to the job market. Utility and telecom records leverage payment histories for utilities, phone bills, and other recurring services, which can provide additional layers of identity verification. Alternative financial data includes online small dollar lenders, online installment lenders, single payment, line of credit, storefront small dollar lenders, auto title and rent-to-own. Phone-Centric ID Phone-Centric Identity refers to technology that leverages and analyzes mobile, telecom, and other signals for the purposes of identity verification, identity authentication, and fraud prevention. Phone-Centric Identity relies on billions of signals from authoritative sources pulled in real time, making it a powerful proxy for digital identity and trust. Advance authentication technologies Behavioral biometrics analyze user behaviors such as typing patterns, navigation habits, and device usage. These subtle behaviors can help create a unique profile for each user, making it difficult for fraudsters to impersonate them. Adaptive risk-based authentication that adjusts the level of security based on the user's behavior, location, device, and other factors. For example, a higher level of verification might be required for transactions that are deemed unusual or high-risk. Real-time fraud detection AI and machine learning: Deploy AI and machine learning algorithms to analyze transaction patterns and detect anomalies in real-time. These technologies can identify suspicious activities and flag potential fraud. Fraud analytics: Use predictive analytics to assess the likelihood of fraud based on historical data and current behavior. This approach helps in proactively identifying and mitigating fraudulent activities. Secure digital onboarding Digital identity verification: Implement digital onboarding processes that include online identity verification with real-time document verification. Users can upload government-issued IDs and take selfies to confirm their identity. Video KYC (Know Your Customer): Use video calls to conduct KYC processes, allowing bank representatives to verify identities and documents remotely via automated identity verification. This method is secure and convenient for tech-savvy Gen Z customers. Make identity verification easy To authenticate identities and combat fraud within the Gen Z population, financial organizations need to implement a comprehensive strategy utilizing innovative technologies, non-traditional data, and strong protective protocols. Such actions will enable the creation of a trustworthy and frictionless banking environment that appeals to a generation adept in digital interactions, thereby establishing trust and encouraging enduring connections. To learn more about Experian’s automated identity verification solutions, visit our website. Learn more 

Finding a balance between providing secure financial services and user-friendly experiences is no easy task. One of the biggest hurdles? Ensuring identity authentication is robust and reliable. Let's walk through the essentials of identity authentication, its importance, and what effective solutions look like. What is identity authentication? Identity authentication is the process of proving that an individual is who they claim to be. Unlike identity verification, which simply confirms that the provided identity information is valid, identity authentication goes a step further by ensuring that the person presenting the information is indeed its rightful owner. At its core, identity authentication relies on various methods to verify identities. These methods can range from simple password checks to more sophisticated technologies like biometrics and adaptive authentication. The goal is to create multiple layers of security that make it difficult for unauthorized users to gain access. Types of authentication methods Several types of identity authentication methods are used today. Passwords and PINs are the most basic forms, but they are increasingly being supplemented or replaced by more advanced solutions like multi-factor authentication (MFA) , biometric scans, and knowledge-based authentication (KBA). Each method has its advantages and limitations, making it crucial for financial institutions to choose the right mix. Authentication vs. verification While often used interchangeably, identity verification and identity authentication serve different purposes. Identity verification solutions confirm that the provided identity information matches public records, whereas identity authentication solutions ensure that the person presenting the information is its true owner. Identity verification is typically a one-time process conducted at the beginning of a relationship, such as when opening a new bank account. On the other hand, identity authentication is an ongoing process, ensuring that each login or transaction is carried out by a legitimate user. Though different, these processes are crucial for financial institutions. They work together to provide a robust security framework that minimizes the risk of fraud while offering a seamless user experience. READ: Learn how to overcome online identity verification challenges. Why it's important for financial institutions The importance of identity authentication for financial institutions cannot be overstated. With the rise of cyber threats and sophisticated fraud schemes like synthetic identity fraud, robust identity authentication measures are more critical than ever. Enhancing security. Effective authentication significantly enhances the security of financial transactions. By preventing unauthorized access, sensitive information and financial assets are safeguarded. Advanced solutions like multi-factor authentication solutions add extra layers of protection. Building trust with customers. Robust authentication also helps build trust with customers. When users feel confident that their accounts and personal information are secure, they are more likely to engage with the institution and utilize its services. Regulatory compliance. For financial institutions, compliance with regulatory standards is paramount. Many regulations now mandate strong identity authentication measures to protect against fraud and ensure the security of financial transactions. What to look for in an identity authentication solution The ideal solution should offer a balance between security, user experience, and cost-effectiveness. Adaptive authentication solutions use machine learning algorithms to assess the risk level of each transaction. This allows for a dynamic approach to authentication, where additional checks are only required when necessary. Multi-factor authentication (MFA) solutions add an extra layer of security by requiring users to provide multiple forms of identification. This could include something they know (password), something they have (smartphone), and something they are (biometric data). Knowledge-based authentication (KBA) solutions ask users to answer questions based on their personal information. This method is particularly useful for verifying identities during online transactions and account recoveries. Experian’s Knowledge IQSM offers KBA with over 70 credit- and noncredit-based questions to help you authenticate consumers by asking noninvasive questions that can be answered quickly by the true consumer. Comprehensive identity solutions take a holistic approach by integrating various methods and technologies. Experian’s identity solutions offer a range of services, from risk-based authentication to automated identity verification, ensuring comprehensive protection. Importance of user experience. While security is paramount, user experience should not be overlooked. The ideal identity authentication solution should be seamless and user-friendly, minimizing friction during the authentication process. READ: By adopting a consumer-centric approach to digital identity, organizations can offer customers a better experience while minimizing risk. How Experian can help Identity authentication is a critical component of modern financial institutions. By implementing robust and user-friendly solutions, organizations can enhance security, build customer trust, and comply with regulatory standards. Whether it's through adaptive authentication, multi-factor authentication, or knowledge-based authentication, the goal is to create a secure and seamless experience for users. Ready to take your identity strategy to the next level? Explore Experian’s identity solutions today and discover how they can help your institution achieve its security and user experience goals. Learn more This article includes content created by an AI language model and is intended to provide general information.

This article was updated on February 23, 2024. First impressions are always important – whether it’s for a job interview, a first date or when pitching a client. The same goes for financial services onboarding as it’s an opportunity for organizations to foster lifetime loyalty with customers. As a result, financial institutions are on the hunt now more than ever for frictionless online identity verification methods to validate genuine customers and maintain positive experiences during the online onboarding process. In a predominantly digital-first world, financial companies are increasingly focused on the customer experience and creating the most seamless online onboarding process. However, according to Experian’s 2023 Identity and Fraud Report, more than half of U.S. consumers considered dropping out during account opening due to friction and a less-than positive experience. And as technology continues to advance, digital financial services onboarding, not surprisingly, increases the demand for fraud protection and authentication methods – namely with digital identity (ID) verification processes. According to Experian’s report, 64% of consumers are very or somewhat concerned with online security, with identity theft being their top concern. So how can financial institutions guarantee a frictionless online onboarding experience while executing proper authentication methods and maintaining security and fraud detection? The answer? While a “frictionless” experience can seem like a bit of a unicorn, there are some ways to get close: Utilizing better data - Digital devices offer an extensive amount of data that’s useful in determining risk. Characteristics that allow the identification of a specific device, the behaviors associated with the device and information about a device’s owner can be captured without adding friction for the user. Analytics – Once the data is collected, advanced analytics uses information based on behavioral data, digital intelligence, phone intelligence and email intelligence to analyze for risk. While there’s friction in the initial ask for the input data, the risk prediction improves with more data. Document verification and biometric identity verification – Real-time document verification used in conjunction with facial biometrics, behavioral biometrics and other physical characteristics allows for rapid onboarding and helps to maintain a low friction customer journey. Financial institutions can utilize document verification to replace manual long-form applications for rapid onboarding and immediately verify new data at the point of entry. Using their mobile phones, consumers can photograph and upload identity documents to pre-fill applications. Document authenticity can be verified in real-time. Biometrics, including facial, behavioral, or other physical characteristics (like fingerprints), are low-touch methods of customer authentication that can be used synchronously with document verification. Optimize your financial services onboarding process Experian understands how critical identity management and fraud protection is when it comes to the online onboarding process and identity verification. That’s why we created layered digital identity verification and risk segmentation solutions to help legitimize your customers with confidence while improving the customer experience. Our identity verification solutions use advanced technology and capabilities to correctly identify and verify real customers while mitigating fraud and maintaining frictionless customer experiences. Learn more

It is a New Year and a new start. How about a new job? That is what thousands of employees will consider over the next month. It is also a time for employers to attract new talents, but they must be aware of different types of employment fraud. The rise of remote work has significantly increased the prevalence of remote hiring practices, from the initial job application to the onboarding process and beyond. Unfortunately, this shift has also opened the door to a surge in imposter employees, also known as ‘candidate fraud,’ posing a significant concern for organizations.  How does employment identity theft happen?  Instances of potential job candidates utilizing real-time deepfake video and deepfake audio, along with personally identifiable information (PII), during remote interviews to secure positions within American companies have been on the rise. The Federal Bureau of Investigation (FBI) reports that fraudulent individuals often acquire PII through fake job opening posts, which enable them to gather candidate information and resumes. Surprisingly, the tools necessary for impersonation on live video calls do not require sophisticated or expensive hardware or software. Employment identity theft can occur in several ways. Here are a few examples:  Inaccurate credentials: Employers may inadvertently hire someone with false or stolen credentials if they fail to conduct comprehensive background checks. When the employer discovers the deception, it can be challenging to trace the true identity of the person they unknowingly hired.  Limited-term job offers: Some industries offer temporary job opportunities in distant locations. Individuals with criminal backgrounds may steal victims' identities to apply for these jobs, hoping that their crimes will go unnoticed until after the job is complete.  Perpetrated by colleagues: In rare instances, jealous colleagues or coworkers can commit employment identity theft. They may steal a coworker's information during a data breach and sell it on the dark web or use the victim's credentials to frame them for fraudulent workplace actions.  Preventing employment identity theft  In addition to the reported cases of imposter employee fraud, it is crucial to acknowledge the potential for other scams that exploit new technologies and the prevalence of remote work. Malicious cyber attackers could secure employment using stolen credentials, enabling them to gain unauthorized access to sensitive data or company systems. A proficient hacker possessing the necessary IT skills may find it relatively easy to leverage social engineering techniques during the hiring process. Consequently, the reliability of traditional methods for employee verification, such as face-to-face interactions and personal recognition, is diminishing in the face of remote work and the technological advancements that enable individuals to manipulate their appearance, voice, and identity. To mitigate risks associated with hiring imposters, it is imperative to incorporate robust measures into the recruitment process. Here are some key considerations:  Establish clear policies and employment contracts: Clearly communicate your organization's policies regarding moonlighting in employment contracts, employee handbooks, or other official documents.   Confidentiality and non-compete agreements: Implement confidentiality and non-compete agreements to protect your company's sensitive information and intellectual property.   Monitoring: Automate employment and income verification of your employees.  Provide training on cybersecurity best practices: Educate employees about cyber-attacks and identity scams, such as phishing scams, through seminars and workplace training sessions.  Implement robust security measures: Use firewalls, encrypt sensitive employee information, and limit access to personal data. Minimize the number of employees who have access to this information.  Thoroughly screen new employees: Verify the accuracy of Social Security numbers and other information during the hiring process. Conduct comprehensive background checks, including checking bank account information and credit reports and fight against synthetic identities.  Offer identity theft protection as a benefit: Consider providing identity theft protection services to your employees as part of their benefits package. These services can detect and alert victims of potential identity theft, facilitating a fast response.  The new era of remote work necessitates a fresh perspective on the hiring process. It is crucial to reevaluate HR practices and leverage AI fraud detection technologies to ensure that the individuals you hire, and employ are who they claim to be, guarding against the infiltration of imposters.  Navigating employment fraud with effective solutions  Employment fraud presents significant risks and challenges for employers, including conflicts of interest, reputation damage, and breaches of confidentiality. By taking the right preventative measures, you can safeguard your organization and employees.  Streamlining the hiring process is essential to remain competitive. But how do you balance the need for speed and ease of use with essential ID checks?  By combining the best data with our automated ID verification processes, Experian helps you protect your business and onboard new talents efficiently. Our best-in-class solutions employ device recognition, behavioral biometrics, machine learning and global fraud databases to spot and block suspicious activity before it becomes a problem.  Learn more about preventing employement fraud *This article includes content created by an AI language model and is intended to provide general information.

The online gaming industry has experienced tremendous growth in recent years, with millions of players engaging in immersive virtual worlds and competitive gameplay. Unfortunately, this surge in popularity has also sparked an increase in online gaming fraud. Unscrupulous individuals have sought to exploit the industry through fraudulent activities, leading to financial losses and reputational damage for gaming vendors.According to a recent study conducted by Lloyds Bank, children are spending more time playing online games than ever before – over five million children between the ages of three and 15 are now regularly playing games online, up from approximately 4.6 million in 2019.Fraudsters, always ready to take advantage of opportunities presented by new trends, are now increasingly targeting this rising demographic. Gaming vendors have a responsibility to shield minors from fraud in online gaming by implementing robust safety measures, educating young players and their parents, and actively monitoring and addressing fraudulent activities.   A vulnerable target That same study from Lloyds revealed that over a third (36%) of parents are concerned about the possibility of their children falling victim to gaming fraud and losing money. In today's tech-savvy world, the ease of payment authorization has only exacerbated these concerns. All it takes for a child to make a payment is to key in their parents' online store username and password. It is a practice fraught with danger. Parents can only do so much to safeguard their children while gaming, and despite their best efforts, there will always remain a lingering possibility of encountering scammers. Gaming vendors should establish robust age verification processes during account creation to ensure that minors are not exposed to age-inappropriate content. Additionally, they should incorporate comprehensive parental controls that allow parents to regulate their children's online activities, including chat limitations, spending controls, and access to certain features.But contrary to common assumptions, the gaming population is not restricted to teenagers or young adults. With an average age of 35, gamers have significant purchasing power and actively participate in the gaming ecosystem. They spend an average of over six hours per week gaming, dedicating nearly an hour each day to their preferred gaming experiences. This engagement is spread across all age groups and financial profiles, making the gaming community a vast market to attract cybercrime. Types of fraud in online gaming In 2022, the revenue from the worldwide gaming market was estimated at almost 347 billion U.S. dollars, with the mobile gaming market generating an estimated 248 billion U.S. dollars of the total. The gaming market is constantly evolving, and technological advancements are opening new possibilities for game developers to create more immersive and engaging experiences.But alarming reports indicate that scammers have honed in on the younger demographic of gamers, leveraging their innocence to exploit their finances and identities. Identity theft (67%) and hacking (61%) rank as the two most prevalent forms of fraud experienced by young gamers, according to the Lloyds Bank study. Here are some different types of online gaming fraud: Account hacking: Hackers employ various techniques like phishing, keylogging, and credential stuffing to gain unauthorized access to players' accounts. Once compromised, accounts could be used for fraudulent activities, including unauthorized in-game transactions or selling virtual assets for real money. Chargeback fraud: This occurs when players make legitimate purchases within a game using real money and then issue chargebacks, falsely claiming that the transaction was unauthorized or fraudulent. This results in financial losses for gaming vendors as they lose the revenue and virtual goods/services provided to the player. Virtual asset fraud: Virtual assets, such as in-game currency, items, or characters, hold economic value. Fraudsters engage in scams involving fake virtual asset transactions or market manipulation, exploiting players' desires to acquire rare or high-value items. Match-fixing and cheating: Competitive gaming is at the heart of many online games. Fraudsters seek to manipulate matches, exploit glitches, or use cheat software to gain an unfair advantage over others. This undermines the integrity of the gaming experience and discourages fair competition. The game changer for online platforms: fraud prevention strategies  Given the anticipated growth of these threats in the foreseeable future, it is imperative that online platforms prioritize the protection of young gamers and their parents. In line with the enhanced safeguards and anti-fraud initiatives observed in banks and financial institutions, it is high time for game companies to elevate their security and consumer protection measures by adopting the following guidelines: Implement strong account security measures: Encourage players to create unique, complex passwords, and consider implementing multifactor authentication solutions. Regularly educate players about common hacking techniques and promote safe browsing habits to prevent phishing attempts. Utilize fraud detection systems: Invest in advanced fraud detection tools that employ machine learning algorithms and biometrics templates to identify suspicious activities and patterns. These systems can flag potentially fraudulent transactions, allowing you to take appropriate measures promptly. Monitor and analyze user behavior: Keep an eye on players' activities and digital identity, such as unusual login patterns, high-value transactions, or frequent chargebacks. Analyze gameplay data, interactions, and purchasing behavior to identify patterns indicative of fraud or cheating. Secure payment processing systems: Choose reputable payment gateways that prioritize security measures. Employ tokenization and encryption technologies to safeguard players' payment information during transactions. Regularly test and update your payment system's security infrastructure. Raise player awareness: Educate your player community about common fraud techniques and the importance of securing their accounts with identity authentication. Share security tips through newsletters, blog posts, and in-game messaging. Foster a culture of vigilance and encourage players to report any suspicious activities. Foster fair gameplay and zero tolerance policy: Implement robust anti-cheat measures and regularly update your game to address vulnerabilities and exploits. Promote fair competition and enforce a zero-tolerance policy against cheating, match-fixing, and other forms of unfair gameplay. Leveling-up Ultimately, the ability to protect players online could be the ultimate gamechanger for gaming platforms. By embracing identity verification mechanisms that rely on secure and privacy-centric facial recognition, online fraud and identity theft can be significantly curtailed. Moreover, the verification and onboarding processes can be streamlined, simplifying the user experience further. Just as bringing top-tier games on board is crucial, game platforms must ensure their customers engage in a secure gaming environment. Streamlining the onboarding and sign-in process is essential to remain competitive. But how do you balance the need for speed and ease of use with essential ID checks? By combining the best data with our automated ID verification checks, Experian helps you safeguard your business and onboard customers efficiently. Using passive, invisible checks when customers sign into their accounts helps to keep fraudsters at bay and protects legitimate players without the need for irritating security challenges. Experian’s best-in-class solutions employ device recognition, behavioral biometrics, machine learning and global fraud databases to spot and block suspicious activity before it becomes a problem. Learn more *This article leverages/includes content created by an AI language model and is intended to provide general information.

Sometimes logging into an account feels a bit like playing 20 questions. Security is vital for a positive customer experience, and engaging the right identity verification strategies is essential to proactive fraud prevention. For financial institutions and businesses, secure authentication is more important than ever. It is imperative for customer safety – which drives retention and loyalty – and your bottom line – as fraud has determinantal effects on and off the balance sheet. Information sharing has proliferated, as has the number of times consumers are prompted to provide access to sensitive information. While today’s consumer has grown accustomed to providing such information, there’s also a heightened demand for security. According to Experian’s 2023 U.S. Identity and Fraud Report, nearly two-thirds (64%) of consumers say they’re very or somewhat concerned with online safety, listing identity theft, stolen card information and online privacy as top concerns. Customers want to know who they are providing access to and whether that entity will have their safety in mind. From a business perspective, one way to ensure that only the right people can get in is by using (KBA). KBA takes traditional authentication methods, like passwords and Personal Identification Numbers (PINs), one step further by creating an additional layer of security through collecting private facts from each user. In this post, we'll look at how KBA works, what its benefits are as a form of identity verification, and how it can improve customer trust. Introducing Knowledge Based Authentication (KBA): What it is and how it works Knowledge Based Authentication can be part of a multifactor authentication solution and is one way to stay on top of privacy and security for your customers – existing and new. KBA is a feature designed to protect online accounts by verifying the account holder’s identity. It involves answering a series of personal questions, such as mother's maiden name or first pet's name, that only the account holder should know. This system has become increasingly popular due to its effectiveness in preventing fraud and identity theft. With KBA, businesses and individuals can have peace of mind that their information is protected by a reliable authentication system that is difficult for unauthorized users to breach. Benefits of implementing KBA and a multifactor authentication strategy By implementing KBA into your business, customers experience an additional layer of security by verifying the identity of users through personalized questions. This reduces the risk of fraud and enhances customer trust and confidence. Secondly, it improves the customer experience by making the authentication process faster and user-friendly. Lastly, KBA reduces costs by automating the authentication process and reducing the need for manual intervention. However, KBA is just one facet of an ideal strategy. Multifactor authentication provides confidence while reducing friction. Risk-based authentication tools allow organizations to assess risk to apply the appropriate level of security. Factors to consider adding to your authentication processes include: Generating unique one-time passwords (OTPs): By creating a new OTP for each transaction, you can increase the level of security. Confirm device ownership: A multifactored approach applies device intelligence checks to increase confidence that the message is reaching the correct user. Maintain low friction with secondary options: If the OTP fails or can’t be attempted by the user, working with a provider who allows an automatic default to another authentication service, such as a knowledge-based authentication solution, decreases end-user friction. Identifying potential security risks associated with KBA KBA relies on personal information that may easily be discovered via social media and other public records, which makes it vulnerable to fraud and identity theft. This highlights the need for a multilayered fraud and identity solution. The landscape of digital security is constantly changing, leveraging an arsenal of fraud and identity prevention strategies, like document verification, one-time passcode, and various identity authentication and verification measures, is critical for keeping your customers and business safe. Commonly used technologies for enhancing KBA security With the rising need for secure authentication, KBA systems have become increasingly popular. However, cyberthreats evolve at an alarming rate, making it imperative to stay current with the latest fraud schemes and how to enhance and supplement your security. Biometrics, like facial recognition and fingerprint scans, as a tactic is gaining traction, as evidenced by “85% of consumers report physical biometrics as the most trusted and secure authentication method they have recently encountered,” according to Experian’s 2023 U.S. Identity and Fraud Report. Additionally, machine learning algorithms detect patterns and anomalies in user behavior and flag any potential security breaches. Multi-factor authentication is another tool that adds an extra layer of security by requiring users to provide multiple forms of identification before logging in. Keeping up with these and other technological advancements can help ensure your KBA system stays one step ahead of potential cyberattacks. Interestingly, there’s a disconnect between the technologies consumers feel safe with and/or are prepared to use versus the technologies and strategies that organizations implement. According to the U.S. Identity and Fraud Report, biometrics are only currently used by 33% of businesses to detect and protect against fraud. An opportunity for business differentiation and driving customer loyalty through a better customer experience may be tapping into some of these lesser used – but sought after – technologies. Compliance with industry standards regarding KBA Ensuring that your system complies with industry standards regarding KBA is crucial for protecting sensitive information from unauthorized access. By implementing the following tips, you can stay ahead of the game and safeguard your organization's data. Analyze your system's current authentication methods and evaluate if they meet industry standards. Additionally, follow standard guidelines for data storage and encryption, limit access to only authorized personnel, and y current with regulations. Lastly, conduct frequent security audits and perform vulnerability tests to identify and address any potential threats. Knowledge-based authentication offers a robust security solution for businesses of all sizes, and incorporating KBA as part of a multifactor authentication strategy is a winning course of action. It provides an added layer of protection for personal data, encourages user accountability, and safeguards against unauthorized access. By leveraging appropriate KBA technologies and maintaining compliance with industry standards, it is possible to create a secure system for customers that gives you peace of mind for your business and bottom line. Experian can help you with knowledge-based authentication offerings, a multifactor authentication strategy and everything in between to enhance your existing authentication process without causing user fatigue. Increase your pass rates, confirm device ownership and add security to risky or high-value transactions, all while executing identity verification and fraud detection to protect your business from risk. The most important step is getting started. Learn more

This article was updated on April 23, 2024. Keeping your organization and consumers safe can be challenging as cybercriminals test new attack vectors and data breaches continually expose credentials. Instead of relying solely on usernames and passwords for user identity verification, adding extra security measures like multi-factor authentication can strengthen your defense. What is multi-factor authentication? Multi-factor authentication, or MFA, is a method of authenticating people using more than one type of identifier. Generally, you can put these identifiers into three categories based on the type of information: Something a person knows: Usernames, passwords, and personal information are common examples of identifiers from this category. Something a person has: These could include a phone, computer, card, badge, security key, or another type of physical device that someone possesses. Something a person is: Also called the inherence factor, these are intrinsic behaviors or qualities, such as a person's voice pattern, retina, or fingerprint. The key to MFA is it requires someone to use identifiers from different categories. For example, when you withdraw money from an ATM, you're using something you have (your ATM card or phone), and something you know (your PIN) or are (biometric data) to authenticate yourself. Common types of authenticators Organizations that want to implement multi-factor authentication can use different combinations of identifiers and authenticators. Some authenticator options include: One-time passwords: One-time passwords (OTPs) can be generated and sent to someone's mobile phone via text to confirm the person has the phone or via email. There are also security tokens and apps that can generate OTPs for authentication. (Something you know.) Knowledge-based authentication: Knowledge-based authentication (KBA) identity verification leverages the ability to verify account information or a payment card, “something you have,” by confirming some sequence of numbers from the account. (Something you know.) Security tokens: Devices that users plug into their phone or computer, or hold near the device, to authenticate themselves. (Something you have.) Biometric scans: These can include fingerprint and face scans from a mobile device, computer, or security token. (Something you are.) Why MFA is important It can be challenging to keep your users and employees from using weak passwords. And even if you enforce strict password requirements, you can't be sure they're not using the same password somewhere else or accidentally falling for a phishing attack. In short, if you want to protect users' data and your business from various types of attacks, such as account takeover fraud, synthetic identity fraud, and credential stuffing, you’ll need to require more than a username and password to authenticate users. That’s where MFA comes in. Because it uses a combination of elements to verify a consumer’s identity, if one of the required components in a transaction is missing or supplied incorrectly, the transaction won’t proceed. As a result, you can ensure you’re interacting with legitimate consumers and protect your organization from risk. LEARN MORE: Explore our fraud prevention solutions. How to provide a frictionless MFA experience While crucial to your organization, in-person and online identity verification shouldn’t create so much friction that legitimate consumers are driven away. Experian's 2023 U.S. Identity and Fraud Report found that 96 percent of consumers view OTPs as convenient identity verification solutions when opening a new account. An increasing number of consumers also view physical and behavioral biometrics as some of the most trustworthy recognition methods — 81 and 76 percent, respectively. To create a low friction MFA experience that consumers trust, you could let users choose from different MFA authentication options to secure their accounts. You can also create step-up rules that limit MFA requests to riskier situations — such as when a user logs in from a new device or places an unusually large order. To make the MFA experience even more seamless for consumers, consider adding automated identity verification (AIV) to your processes. Because AIV operates on advanced analytics and artificial intelligence, consumers can verify their identities within seconds without physical documentation, allowing for a quick, hassle-free verification experience. How Experian powers multi-factor authentication Experian offers various identity verification and risk-based authentication solutions that organizations can leverage to streamline and secure their operations, including: Experian’s CrossCore® Doc Capture confidently verifies identities using a fully supported end-to-end document verification service where consumers upload an image of a driver’s license, passport, or similar directly from their smartphone. Experian’s CrossCore Doc Capture adds another layer of security to document capture with a biometric component that enables the individual to upload a “selfie” that’s compared to the document image. Experian's OTP service uses additional verification checks and identity scoring to help prevent fraudsters from using a SIM swapping attack to get past an MFA check. Before sending the OTP, we verify that the number is linked to the consumer's name. We also review additional attributes, such as whether the number was recently ported and the account's tenure. Experian's Knowledge IQSM offers KBA with over 70 credit- and noncredit-based questions to help you engage in additional authentication for consumers when sufficiently robust data can be used to prompt a response that proves the person has something specific in their possession. You can even configure it to ask questions based on your internal data and phrase questions to match your brand's language. Learn more about how our multi-factor authentication solutions can help your organization verify consumer identities and mitigate fraud. Learn about our MFA solutions

As the sophistication of fraudulent schemes increases, so must the sophistication of your fraud detection analytics. This is especially important in an uncertain economic environment that breeds opportunities for fraud. It's no longer enough to rely on old techniques that worked in the past. Instead, you need to be plugged into machine learning, artificial intelligence (AI) and real-time monitoring to stay ahead of criminal attempts. Your customers have come to expect cutting-edge security, and fraud analytics is the best way to meet — and surpass — those expectations. Leveraging these analytics can help your business better understand fraud techniques, uncover hidden insights and make more strategic decisions. What is fraud analytics? Fraud analytics refers to the idea of preventing fraud through sophisticated data analysis that utilizes tools like machine learning, data mining and predictive AI.1 These services can analyze patterns and monitor for anomalies that signal fraud attempts.2 While at first glance this may sound like a lot of work, it's necessary in today's technologically savvy culture. Fraud attempts are becoming more sophisticated, and your fraud detection services must do the same to keep up. Why is fraud analytics so important? According to the Experian® 2023 US Identity and Fraud Report, fraud is a growing issue that businesses cannot ignore, especially in an environment where economic uncertainty provides a breeding ground for fraudsters. Last year alone, consumers lost $8.8 billion — an increase of 30 percent over the previous year. Understandably, nearly two-thirds of consumers are at least somewhat concerned about online security. Their worries range from authorized push payment scams (such as phishing emails) to online privacy, identity theft and stolen credit cards. Unfortunately, while 75 percent of surveyed businesses feel confident in protecting against fraud, only 45 percent understand how fraud impacts their business. There's a lot of unearned confidence out there that can leave businesses vulnerable to attack, especially with nearly 70 percent of businesses admitting an increase in fraud loss in recent years. The types of fraud that businesses most frequently encounter include: Authorized push payment fraud: Phishing emails and other schemes that persuade consumers to deposit funds into fraudulent accounts. Transactional payment fraud: When fraudulent actors steal credit card or bank account information, for example, to make unauthorized payments. Account takeover: When a fraudster gains access to an account that doesn't belong to them and changes login details to make unauthorized transactions. First-party fraud: When an account holder uses their own account to commit fraud, like misrepresenting their income to get a lower loan rate. Identity theft: Any time a person's private information is used to steal their identity. Synthetic identity theft: When someone combines real and fake personal data to create an identity that's used to commit fraud. How can fraud analytics be used to help your business? More than 85% of consumers expect businesses to respond to their security and fraud concerns. A good portion of them (67 percent) are even ready to share their personal data with trusted sources to help make that happen. This means that investing in risk and fraud analytics is not only vital for keeping your business and customer data secure, but it will score points with your consumers as well. So how can your business utilize fraud analytics? Machine learning is a great place to start. Rather than relying on outdated rules-based analytic models, machine learning can vastly increase your speed in identifying fraud attempts. This means that when a new fraudulent trend emerges, your machine learning software can pinpoint it fast and flag your security team. Machine learning also lets you automatically analyze large data sets across your entire customer portfolio, improving customer experiences and your response time. In general, the best way for your business to use fraud analytics is by utilizing a multi-layered approach, such as the robust fraud management solutions offered by Experian. Instead of a one-size-fits-all solution, Experian lets you customize a framework of physical and digital data security that matches your business needs. This framework includes a cloud-based platform, machine learning for streamlined data analytics, biometrics and other robust identity-authentication tools, real-time alerts and end-to-end integration. How Experian can help Experian's platform of fraud prevention solutions and advanced data analytics allows you to be at the forefront of fraud detection. The platform includes options such as: Account takeover prevention. Account takeovers can go unnoticed without strong fraud detection. Experian's account takeover prevention tools automatically flag and monitor unusual activities, increase efficiency and can be quickly modified to adapt to the latest technologies. Bust-out fraud prevention. Experian utilizes proactive monitoring and early detection via machine learning to prevent bust-out fraud. Access to premium credit data helps enhance detection.  Commercial entity fraud prevention. Experian's Sentinel fraud solutions blend consumer and business datasets to create predictive insights on business legitimacy and credit abuse likelihood. First-party fraud prevention. Experian's first-party fraud prevention tools review millions of transactions to detect patterns, using machine learning to monitor credit data and observations. Global data breach protection. Experian also offers data breach protection services, helping you use turnkey solutions to build a program of customer notifications and identity protection. Identity protection. Experian offers identity protection tools that deliver a consistent brand experience across touchpoints and devices. Risk-based authentication. Minimize risk with Experian's adaptive risk-based authentication tools. These tools use front- and back-end authentication to optimize cost, risk management and customer experience. Synthetic identity fraud protection. Synthetic identity fraud protection guards against the fastest-growing financial crimes. Automated detection rules evaluate behavior and isolate traits to reduce false positives. Third-party fraud prevention. Experian utilizes third-party prevention analytics to identify potential identity theft and keep your customers secure. Your business's fraud analytics system needs to increase in sophistication faster than fraudsters are fine-tuning their own approaches. Experian's robust analytics solutions utilize extensive consumer and commercial data that can be customized to your business's unique security needs. Experian can help secure your business from fraud Experian is committed to helping you optimize your fraud analytics. Find out today how our fraud management solutions can help you. Learn more 1 Pressley, J.P. "Why Banks Are Using Advanced Analytics for Faster Fraud Detection," BizTech, July 25, 2023. https://biztechmagazine.com/article/2023/07/why-banks-are-using-advanced-analytics-faster-fraud-detection 2 Coe, Martin and Melton, Olivia. "Fraud Basics," Fraud Magazine, March/April 2022. https://www.fraud-magazine.com/article.aspx?id=4295017143

Have you heard about the mischievous ghosts haunting our educational institutions? No, I am not talking about Casper's misfit pals. These are the infamous ghost students! They are not here for a spooky study session, oh no! They are cunning fraudsters lurking in the shadows, pretending to be students who never attend classes. It is taking ghosting to a whole new level. Understanding ghost student fraud Ghost student fraud is a serious and alarming issue in the educational sector. The rise of online classes due to the pandemic has made it easier for fraudsters to exploit application systems and steal government aid meant for genuine students. Community colleges have become primary targets due to slower adoption of cybersecurity defenses. It is concerning to hear that a considerable number of applications, such as in California (where Social Security numbers are not required at enrollment), are fictitious, with potential losses in financial aid meant for students in need. The use of stolen or synthetic identities in creating bot-powered applications further exacerbates the problem. The consequences of enrollment fraud can have a profound impact on institutions and students. The recent indictment of individuals involved in enrollment fraud, where identities were stolen to receive federal student loans, highlights the severity of the issue. Unfortunately, the lack of awareness and inadequate identity document verification processes in many institutions make it difficult to fully grasp the extent of the problem. What is a ghost student? Scammers use different methods to commit ghost student loan fraud, including creating fake schools or enrolling in real colleges. Some fraudsters use deceitful tactics to obtain the real identities of students, and then they use it to fabricate loan applications. Types of ghost loan fraud, include: Fake loan offers: Fraudsters contact students via various channels, claiming to offer exclusive student loan opportunities with attractive terms and low interest rates. They often request personal and financial information including their SSN and bank account information and use it to create ghost loans. Identity theft: Threat actors will steal personal info through data breaches or phishing. They will then forge loan applications using the victim’s identity. Targeting vulnerable individuals: Ghost student loan fraud tends to prey on those already burdened by debt. Scammers may target borrowers with poor credit history, promising loan forgiveness or debt consolidation plans in exchange for a fee. Once the victim pays, the fraudsters disappear. Ultimately, addressing ghost student fraud requires a multi-faceted approach involving collaboration between educational institutions, government agencies, and law enforcement to safeguard the accessibility and integrity of education for all deserving students. Safeguarding the financial integrity of educational institutions One powerful weapon in the battle against ghost student fraudsters is the implementation of robust identity verification solutions. Financial institutions, online marketplaces, and government entities have long employed such tools to verify the authenticity of individuals, and their application in the educational domain can be highly effective. By leveraging these tools, institutions can swiftly and securely carry out synthetic fraud detection and confirm the identity of applicants by cross-referencing multiple credible sources of information. For instance, government-issued IDs can be verified against real-time selfies, email addresses can be screened against reliable databases, and personally identifiable information (PII) can be compared to third-party dark web data to detect compromised identities. Clinching evidence from various sources renders it nearly impossible for fraudsters to slip past the watchful eyes of enrollment officers. Moreover, implementation of identity verification measures can be facilitated through low-code implementation, ensuring seamless integration into existing enrollment workflows without requiring extensive technical expertise or incurring exorbitant development costs. To further fortify security measures, educational institutions may consider incorporating biometric enrollment and authentication solutions. By requiring face or voice biometrics for accessing school resources, institutions can create an additional layer of protection against fraudsters and their ethereal counterparts. The reluctance of fraudsters to enroll their own biometric data serves as a powerful deterrent against their intrusive activities. Taking action By adopting these robust measures, higher educational institutions can fortify their defenses against ghost student fraud and maintain the integrity of their finances. The use of online identity verification methods and biometric authentication systems not only strengthens the enrollment process but serves as a stringent reminder that there is no resting place for fraudsters within the hallowed halls of education. To learn more about how Experian can help you leverage fraud prevention solutions, visit us online or request a call. *The SSN Verification tool, better known as eCBSV is also a tool that can be utilized to verify SSN.  *This article leverages/includes content created by an AI language model and is intended to provide general information.

In the fast-paced world of lending and financial services, digital income verification processes play a crucial role in assessing customer eligibility and mitigating risk. However, not all verification methods are created equal. Let's delve into the differences between instant, permissioned, and manual income and employment verification, and their unique characteristics, benefits, and drawbacks. Instant verification: Real-time insights for seamless decision-making Instant employment and income verification is a game-changer in the lending industry. It provides immediate insights into a customer's financial information, allowing lenders to make real-time decisions. This real-time access to data streamlines the decision-making process, enabling lenders to deliver a seamless and frictionless customer experience. The advantages of instant employment and income verification include: Speed and efficiency: Instant verification eliminates the time-consuming process of manually gathering and analyzing data. This enables lenders to expedite loan approvals, reducing customer waiting times significantly.  Enhanced user experience: By delivering real-time results, instant verification enhances the overall customer experience. Customers can complete their applications quickly and effortlessly, leading to increased satisfaction and higher conversion rates.  Reduced risk: Real-time verification allows lenders to assess applicant information promptly, maintaining the security and integrity of lending processes.  Permissioned verification: Empowering customers in their digital experience  Permissioned verification gives customers the ability to grant access to their financial information directly from their payroll or bank accounts. This method is valuable because it keeps customers within their digital experience, eliminating the need for manual document submission or authentication. The benefits of permissions verification include: Convenience and speed: By granting permissioned access, customers can automate income verification and avoid the hassle of uploading or submitting pay stubs manually. This saves time and effort, resulting in a faster verification process.  Increased coverage and reduced abandonment: Permissioned verification ensures a higher coverage rate by minimizing the potential for customer abandonment during the application process. Since the information is retrieved seamlessly, customers are more likely to complete the application without frustration.  Privacy and control: Customers retain control over their data by explicitly granting permission for access. This enhances transparency and empowers individuals to manage their financial information securely.  Manual Verification: A last resort with high friction  Manual verification is a traditional method that involves time-consuming and costly processes. It requires lenders to manually collect, review, and verify documents provided by the customer. This method should be reserved as a last-ditch effort when instant and permissioned verification options are not feasible. There are several drawbacks to manual verification, including: Time-consuming: Manual verification involves significant manual labor, which leads to longer processing times. This delays loan approvals and can negatively impact the customer experience.  High cost: The labor-intensive nature of manual verification incurs higher operational costs for lenders. These costs can potentially trickle down to customers in the form of higher fees.  Increased friction: Customers must go through the inconvenience of gathering and submitting physical documents, potentially hindering the overall loan application process.  Level-up your verification experience The differences between instant, permissioned, and manual verification are important to understand. As technology continues to evolve, instant and permissioned verification methods are poised to become the norm, transforming lending processes and fostering greater efficiency and customer satisfaction. Lenders must embrace these innovative verification methods to stay ahead in the competitive financial landscape and provide an exceptional digital income verification experience for their customers.  To learn how Experian can help you transform your verification experience, visit us as experian.com/verify.   *This content has been created by an AI language model and is intended to provide general information.

While the principle of “trust but verify” might work for personal relationships, “verifying before trusting” is a more appropriate approach for businesses. According to Experian’s 2024 U.S. Identity and Fraud Report, consumers ranked identity theft as their top online security concern. As consumers conduct more activities online, the use of digital identity verification methods is becoming increasingly important. In this article, we explore how a streamlined initial verification process and continual authentication can help you build consumer trust and loyalty, as well as protect your business.  What is identity verification?  Online identity verification is the process of digitally confirming the identity of a user. Whether you’re reviewing an account application or approving an online transaction, you need to know that the person you’re dealing with is who they claim to be.  Technology can help bring traditional identification verification methods online, such as checking a photo ID. Additionally, people and organizations have more digital “fingerprints” than ever before, which digital identity solutions can use to authenticate users with increased accuracy and less friction.  What do online identity verification methods help solve?  A well-designed and implemented online identity verification process can help address fraud, compliance and customer demands all at once. Verifying someone’s identity when they first create an account could be an important part of the know your customer (KYC) and customer identification program (CIP) requirements. From that moment on, continuous authentication can help detect and prevent fraud.  Balancing the need for identity verification with a smooth online experience can be challenging. Customers may abandon a cart if identification requirements aren’t easy and fast, and may look for new services altogether if they’re repeatedly asked to authenticate themselves. But the challenge also presents an opportunity for companies that can leverage online identity verification services and methods to verify users’ identities accurately and discreetly.  Examples of online identity verification methods  There are multiple ways to verify someone’s identity, but some of the most popular online identity verification methods include:  Personally identifiable information. Including their name, address, email address and phone number that can be checked against existing databases.  Mobile network operator data. A service that verifies a person’s mobile phone identity. For instance, this can help verify the name, address, device details and other information associated with a phone number.  Document verification. There are services that ask consumers to snap and upload a picture of the required document, like a driver’s license, passport, visa or national ID card. These may be verified with 2D or 3D facial recognition with liveness detection (e.g., verifying the user is human) or validating whether the document is real by verifying things like magnetic ink, the machine-readable zone and the barcode are genuine. One-time passwords. A one-time password is sent to a user’s phone or email during an application process to verify that they can access the account or device. Multifactor authentication. A service for existing users who can verify their identity with a combination of different factors, such as a password or biometrics (a method that measures unique physiological characteristics using fingerprints and face recognition). Knowledge-based association questions. These are questions that users answer to verify their identity. The questions may be based on their previous answers to “secret questions” or information from a credit bureau. Behavioral analysis. A service that verifies identity by comparing how a user interacts with a website or app to their previous behavior or an average user’s behavior. Environmental attributes, such as time and location, may also be considered. This technique requires no effort from the consumer. To keep up with increasing consumer and business demand, online identity verification processes may use artificial intelligence and machine learning techniques to complement the digital and manual processes. Some methods, such as consistency checks on a device and behavioral biometric assessments, can also help offer an “invisible” approach to verification. Even small behavioral traits, such as a user’s scrolling style or finger pressure, could be important data points. These invisible methods may be welcomed as a low-friction approach by consumers, who are increasingly aware of the lack of security that comes from only using passwords as an identity verification method. In Experian’s 2024 U.S. Identity and Fraud Report, 71 percent of consumers said physical biometrics are most important for a better online experience, followed by PIN codes sent to a mobile device (70 percent) and behavioral biometrics (66 percent). How Experian can help Experian is a global leader in identity verification and fraud detection services. We offer a layered approach that draws on different verification methods, including credit, device, non-traditional and user-provided data. Step-up authentication can add additional verification requirements based on how risky a user appears or the action they’re trying to take. The approach gives your trusted users a lower-friction experience while helping you detect multiple types of fraud and address CIP discrepancies. At the same time, your customers are assigned a unique and persistent identity, which can give you a single, consolidated view of your customers based on data from different platforms. Using these insights from identity resolution, you can deliver a personalized experience that surprises and delights. Learn more about Experian’s identity verification solutions and Experian VerifyTM. Learn more

This article was originally published on multifamilyinsiders.com One of the challenges currently facing the rental housing industry is the amount of lease application fraud. An Entrata study found a 111% increase in lease application fraud between 2019 and 2020. In the same study, 55% of surveyed apartment managers and rental operators said their properties experience fraudulent lease application attempts every few months, and 15% said their communities were subjected to multiple attempts each month. One-third of respondents described themselves as "very concerned" about application fraud. Just as alarming as the rise in attempts is the apparent likelihood of success. In the study, 65% of apartment managers said they are not confident in their current fraud prevention efforts. Some applicants can use a range of tools to commit fraud such as fake pay stubs, bank statements, employment records, and other falsified documents. Unfortunately, readily available computer technology makes it all too easy for applicants to produce these falsified documents. Tools to fight against fraud Apartment communities that rely on an overly manual screening process may find themselves at a disadvantage in the current landscape. Relying on associates to manually verify things like income and employment history can increase the risk of a deceitful applicant being successful. In addition, these processes can be extraordinarily time-consuming, which means leasing associates have less bandwidth for their many other important duties and responsibilities. Not to mention, the units stay unoccupied while these time-consuming verifications are being done manually. Among the general screening technologies that operators should consider: Automated verification of income, assets and employment — These solutions eliminate the need for operators to collect this kind of documentation from applicants. Furthermore, it eliminates the opportunity for applicants to supply falsified supporting documentation. Frictionless authentication — A multi-layered identity verification process for those applying for rental housing, frictionless authentication detects the subtle and not-so-subtle signs that an applicant is, to one degree or another, using a false identity. By highlighting discrepancies, the process assigns a “score” to quantify the likelihood that misrepresentation is taking place. Additional confirmation of the applicant’s identity can be completed using a one-time passcode (OTP) or knowledge-based authentication (KBA). This technology also uses device intelligence to recognize the risks associated with the physical devices (such as computers, tablets, and smartphones) that consumers use for online applications to identify potential imposters. In today's landscape, apartment owners and operators need to make sure they're protecting themselves against fraudulent applicants, who may not fulfill their financial obligations as outlined in their leases. By embracing the ever-growing array of advanced screening tools and technologies, owners and operators can achieve that protection and reduce their risk significantly — and save their associates time and energy.