Countering Fraud in the Financial Sector
Because of the nature of their businesses, the financial industry is the most at-risk sector for fraud.
Traditional authentication processes provide weak security as they often authorize transactions based on the ability of customers to answer specific questions or present personal information.
However, this data is often prone to theft or easily forgotten. Companies might grant unauthorized individuals access to existing accounts unknowingly when criminals use this data.
Conventional user verification methods do not confirm if the individual is the valid identity owner. Hence, they are ineffective in countering fraud.
Because of these proliferating crimes, financial institutions are prompted to adopt stricter and more secure ways to ensure that the individuals interacting with them are who they claim to be.
Implementing a reliable user authentication solution is imperative for securing sensitive data and funds entrusted to financial firms. Moreover, it also is essential in exercising due diligence with identity verification regulation.
Institutions in the financial industry must advance their technology and adapt to the ways criminals are trying to breach their systems and cheat their current identification processes.
Multi-factor authentication methods and biometric solutions are new ways to mitigate fraud, and firms can customize solutions to fit their security needs.
Onboarding new clients and interacting with them are made more secure with these reliable user identity verification solutions.
For more information on the value of deploying trusted customer authentication processes in the financial industry, an infographic is provided below.