10 Common Misconceptions Businesses Have About Identity Proofing

10 Common Misconceptions
Businesses Have About Identity Proofing
An IDology, Inc. Whitepaper10 Common Misconceptions Businesses Have About Identity Proofing
There is a new automated technology available now that is helping businesses combat identity theft and prevent fraud. It is called identity proofing and it is specifically designed to verify consumer identities online.
With all the fraud prevention solutions available in the market today you are probably wondering, does my company really need to use an identity proofing solution? Here are some of the most common misconceptions to help you understand why the answer is yes.
#We use credit card verification and don't need anything else.10Credit card verification simply determines that a credit card is active - not that the person using the card is authorized to do so. Stolen credit card numbers, including the 3-4 digit security numbers, are widely available for sale in Internet chat rooms within minutes of being stolen. Often it takes several days or weeks for a consumer to see any unauthorized purchases to their account and by then the damage is done and your merchandise is long gone.
#I don't really sell any products on the web.
While most people associate identity proofing with selling products and services online, the 9truth is identity proofing can be used to identify customers in any faceless situation including within call centers. It can also be valuable in situations when the person is right in front of you. The need to identify customers goes way beyond selling electronics and high-end jewelry. Other risk scenarios include granting access to an account, applying for a loan, verifying an employee's social security number matches government records, transferring money, resetting a password, and so forth. Basically anywhere fraud and identity theft could happen, identity proofing should be used.
page  © 2007 IDology, Inc.10 Common Misconceptions Businesses Have About Identity Proofing
#It's not safe.anyone can make up an answer to "What's your mother's maiden name?" 8True. This is why this type of question is called a shared secret. Shared secrets can only be used to proof someone's identity after a relationship is established with the consumer. Instead, identity proofing uses a question process called knowledge-based authentication. Questions are developed in real-time using information found on that person in thousands of trusted data sources, like property records and driver's licenses, and work to identify someone before and after a relationship is established. Because the questions are dynamic and based off someone's personal history, only the real person is able to answer them.
#Our fraud rates are already low.
Yes, but how much revenue are you missing from tight fraud controls and procedures? 7How many legitimate customers are you turning down? And how many transactions does your team have to manually review? Often companies forget to factor in the amount of time that is required from employees and the impact this has on productivity. Manually reviewing transactions, especially in high velocity situations, creates process inefficiencies and ultimately a higher cost for doing business. Not to mention longer processing times and slower fulfillment rates which impact customer satisfaction and ultimately revenue.
#Customers will not like it.
A lot of the identity proofing process happens without interrupting the transaction at 6hand. You should let your customers know that you are protecting them by verifying their identity. But because basic id proofing is usually integrated behind the scenes and uses information a consumer is already providing you, such as their name and address, most times consumers will be unaware of the process, unless of course there is a problem with their identity.
page  © 2007 IDology, Inc.10 Common Misconceptions Businesses Have About Identity Proofing
Sometimes a situation will require active participation from your customers. The highest level of identity proofing involves asking someone a series of multiple choice questions to prove they are who they say they are. While some consumers are curious about this process, most will have increased confidence in your business because you are taking proactive steps to protect them from identity theft.
#It won't fit my budget.
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