The Importance of Trusted User Identity Verification to Counter Fraud in the Financial Sector

counter fraud in financial sector

The U.S. Department of Homeland Security identifies the financial industry among the country’s 16 critical infrastructure sectors. Enterprises in this group are often prone to security risks because of their money-based operations.

Data breach, fraud, and identity theft, among other crimes, continue to threaten financial firms, and with advanced technology, criminals are getting more creative in circumventing vulnerable security systems.

Some try to breach customer onboarding by using stolen data and pretending to be someone else. On the other hand, some criminals focus on infiltrating existing accounts to compromise log in and make illegal transactions.

Financial crimes often entail multi-million dollar losses and damage the reputation of banking establishments, weakening consumer trust. These institutions must ensure they can deter criminal attempts at all points in their operations.

Working with companies that offer Identity as a Service (IDaaS) solutions can help financial enterprises verify the legitimacy of the person trying to access their services. Modern identity proofing measures use anti-fraud technology such as mobile facial biometrics as a secure and efficient means to authenticate a customer.

Biometrics solutions are easily integrated into camera-enabled mobile devices and implement features like liveness or anti-spoofing detection to determine if the individual is present in real-time.

Deploying these identity verification technologies provides financial companies a safer and more convenient way to render their services to legitimate customers.

With the enhanced security and seamless user experience brought by modern identity proofing methods, enterprises can better protect the information and assets entrusted to them, thereby increasing consumer trust and growing revenue.

For more information on the importance of trusted user identity verification to counter fraud in the financial sector, Ipsidy provides the following infographic.

The Importance of Trusted User Identity Verification to Counter Fraud in the Financial Sector Infographic ipsidy

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