Knowing Your Customer vs. Matching Credentials – A New Paradigm for ID Verification
Identity theft and new account fraud go hand-in-hand, and the problem continues to grow with an explosion of data breaches making personal information – including addresses – more widely available than ever before. Unfortunately, traditional ID verification (IDV) solutions that rely solely on matching credentials as a “silver bullet” for fraud prevention continue to fall short. As many as 40 percent of all credit-approved applications fail to match a customer’s mailing address, a major barrier for credit issuers seeking to grow new accounts while mitigating risk.
Leveraging ID Insight’s heritage and experience as the industry’s best source for up-to-date address-change data, we have created an IDV solution that scores new account applications and resolves address discrepancies in an automated way. This new solution allows financial institutions of all sizes to approve more accounts and reduce fraud, with an eye toward greater profit and lower costs.
ID Insight’s new white paper – “The History and Future of Knowing Your Customer” – highlights why address discrepancies are so difficult to capture and how new technologies are now helping to resolve and approve 90 to 95 percent of all address discrepancies.
Read the white paper.