There is a new category of crime that is set to dethrone drug dealing as the No. 1 in ill-gotten gains. In terms of profitability, cyber-fraud is fast overtaking the global trade in illegal substances.
In just two short years, 2021, the annual damage inflicted worldwide by Internet fraud is expected to total six billion US dollars. As a result, cyber-fraud is one of the greatest threats to our economy, and the fastest-growing field of malicious money-making.
At the same time, our business world is increasingly digital. For example, more than half of all insurance policies are already concluded online. Unfortunately, criminals are quick to learn, and quick to modify their business models to new trends and technologies. And that is where the dilemma lies: customers want a convenient, rapid identification process – but it has to offer robust security and be legally compliant.
Choose the right partner
Any company that has digital business operations must address this challenge. Against this backdrop, it is essential to partner with an ID verification specialist you can totally trust – and who has the skills, resources and state-of-the-art technologies required to prevent even the most sophisticated fraud attempts.
Our checklist gives you an overview of what you should look for in an ID verification partner:
- AI-based technology – and not just superficially: Many ID verification solutions claim to use artificial intelligence, but it is best to ask for clarification: What exactly is powered by AI? How much training effort is involved to use it? How accurate are the data provided by the service?
- Hybrid model that combines AI with human brainpower: Advanced technology is vital, but sometimes detecting and combatting fraud calls for human instinct. Make sure the ID verification solution you’re interested in has ambiguous instances checked by a living, expert person.
- Biometrics and liveness detection: Fraudsters are becoming ever cleverer and craftier. A simple biometrics check can be outfoxed by a photo. Liveness detection proves that a real person is in front of the camera.
- Psychological security questions: When social engineering is employed, a technology-based mechanism is not enough. Fraudsters are quick to develop new methods, and it is therefore scarcely feasible to develop a technology that can keep pace. An effective defense is to pose psychological questions.
- A network for monitoring trends and fighting fraud: To remain up to speed with the latest attacks and counter-attacks, you need a variety of information sources. Ensure your potential provider works hard to keep up-to-date at all times – for instance, with a dedicated fraud prevention team or a network that monitors new fraud attempts.
- Verification of security features: To successfully recognize forged IDs it is essential to verify the card’s security features. IDnow’s modular solutions provide made-to-measure security checks for any use case.
- Device binding: You only want an authorized user to have access to an app – and to the account it controls. We give you the ability to integrate a function that binds the app to a specific device.
Would you like to know what kind of identify fraud methods exist, and why the false acceptance rate is so important? Take a look at the IDnow Security Report 2019.