Verify to identify

In a perfect world, businesses should be able to operate in an environment of transparency, certainty and trust. Unfortunately, the cost of doing business today often means factoring in the bad guys, i.e. the fraudsters. But, identify who your customers are before you engage with them and you’re a step closer to that perfect world.

An analysis of fraud trends during the first half of this year revealed an alarming and continuing surge in identity fraud. CIFAS, the UK's Fraud Prevention Service, reported a 22 percent increase in the number of victims of impersonation compared with the same period in 2009. The reality is that businesses are faced with the major challenge of determining whether a customer is actually who they claim to be, while attempting to get more customers through the door.

So herein lies a critical challenge. How do you protect your genuine customers from the ill effects of identity fraud without making the authentication process too onerous? After all, the process should be about creating a positive customer experience for the majority of your customers that you do want to do business with, as well as being able to identify the few that are fraudulent.

Identity verification could be one of the answers. Authenticating customers quickly and easily upfront before you do any form of exchange will keep the customer experience positive and straightforward, weeding out potential customers you don't want; making life easy for the ones you do.

There is no silver bullet remedy to increasing the acquisition of genuine customers whilst totally eliminating identity fraud, but you can ensure a fast and efficient customer authentication process incorporating stringent verification, balancing risk and return. 

Improved acquisition processes can work alongside risk reduction procedures through using new and innovative methods of identity verification. Experian has a new string to its authentication bow. In addition to more traditional means of verifying identity through authentication, organisations can now interact with applicants to confirm and verify identity.

Electronic authentication offers the ability to seamlessly verify an identity using various data sources. And remember that where there isn't much data held on an individual, it doesn't always mean they aren't the genuine person. Often, the answer is to ask the individual. If you need to prove that Bob is really Bob then why not ask him? Who is better qualified to know? Experian's interactive questioning service uses the same vast data resources as electronic authentication to create a set of unique questions which only the genuine applicant will know the answer to. For the customer it provides a straightforward, simple process; for the identity fraudster it creates a significant barrier as they will not have access to the kind of day-to-day information being asked.

Interactive questioning is complimentary to other authentication methods, providing additional confidence and another approach to identifying genuine customers. Having greater confidence in the identity of your customers will enable you to improve how you engage with them from start to end and increase your ability in providing them with high value products and services. Genuine customers should not have to battle with endless form filling and memorising passwords, when the verification process can just as easily be done through answering a set of simple but unique questions.

As companies emerge from the recession, improving customer acquisition, operating safely and securely, and tightening the belt are at the top of their survival checklist. Acquiring more genuine customers first time, while making life as difficult as possible for those customers who are not, is part of the process.

For more information about electronic identity verification, visit www.qas.co.uk/identity-verification

Biography

Stuart Johnston has worked in the data industry for over a decade. He has supported hundreds of organisations with their contact data management strategies and still retains an active role with several of Experian QAS's major customers.