When reading about collaboration in the financial services industry, the topic usually centers around banks and fintech. But perhaps there is more to this story. A team effort between banks could be a welcome development if competitors collaborate and the topic turns to his identity fraud.
That’s definitely the development that people are most concerned about. intelligence check CEO brian lewis. He recently told PYMNTS CEO Karen Webster that the company is actively considering a consortium approach to combating digital identity fraud. Banks are constantly competing for commercial and personal accounts, but when it comes to fraud, they all have a common concern. Lewis envisions an interoperable network where financial institutions can share trust and verification results and add a predictable element to the integrity of their overall digital identity. The consortium’s approach aims not only to deter fraud, but also to create a unified framework that supports digital transactions without sacrificing security.
“We’re talking to our customers and looking at whether we can form a consortium,” Lewis said. “Because each bank can see its own data and can make the most of that data. But given that there is so much data out there, if banks work together, they can get more information out of it. So we’re currently talking with them about participating in a program where we can jointly develop tools to help the community in the future.”
It’s all about barcodes
Intellicheck’s business model focuses on barcodes of ID, a strategy that leverages unique insights into security features across all valid IDs in North America. This approach helps stay ahead of fraudsters who are adept at mimicking the visual aspects of IDs, and Lewis emphasized the importance of innovative verification methods that go beyond superficial checks. He says the current authentication/identity landscape is fragmented, to say the least. There are numerous providers, a patch quilt of regulations, and no clear path for how all the pieces will converge (especially where biometrics are involved).
Lewis understands that banks face the challenge of digital identity and must balance the need for rigorous identity verification with the imperatives of customer experience. He suggests overcoming this obstacle by adjusting the rigor of validation based on the risk profile of the transaction. This flexibility is critical to aligning the customer with a financial institution’s varying tolerance for friction in his or her journey. It’s also important from a data perspective. The bank is careful about storing data, especially his PII.
As Lewis said, “You need to make sure on the back end: [of these solutions]Just like the front end, it has to be consumer-friendly. Otherwise, you will be released on bail. He said merchants and financial institutions (FIs) are particularly concerned about card abandonment for any transaction that takes place in the digital realm.
$20 identity
And while headlines may tout how scammers are using artificial intelligence (AI) and other technologies to concoct synthetic identities, criminals are using relatively low-tech methods to solve problems. I’m doing it without any problems. Go online and purchase the stolen credentials for approximately $20. These are real identities of real people (and prices go up and down depending on your credit score). Scammers buy names, addresses, social security numbers, and email addresses.
“And now they own your identity,” Lewis said. Given the fact that in most cases, all banks and lenders ask for is a social security number and government-issued ID, accessing these companies and creating a gateway to fraud is cheap, quick, and easy. It has been proven that.
“What we’re fighting is an accessible identity element, and the fraudsters who use it. Synthetic identities take a long time to build, but they’re easy to license.” says Lewis.
Intellicheck has been around since 1994 and has been validating identities for the past 30 years to ensure that when people show up online or in person, trusting parties are actually legitimate individuals with legitimate credentials. I have made sure that this is true.
“In the meantime, there are things you can do to establish a known and secure identity,” he told Webster. He said the first step for providers, including Intellicheck, is to verify that the government-issued IDs being used are, in fact, genuine. For the past 30 years, the company has worked with his DMV to gather insight into every aspect of the data on the front and back of licenses, including barcodes, holograms and formats, which vary by state. . .
“We know the security features of all 250 barcodes currently in circulation in North America,” Lewis told Webster. This level of data, spanning 150 million licenses, can help law enforcement quickly confirm whether an ID presented during a routine traffic stop, for example, is truly authentic.
increase friction
He said the license and IntelliCheck’s identity verification solutions also help companies introduce the level of friction they desire for certain transactions and interactions, but the level of friction varies by industry. Financial institutions tend to introduce significant friction into the process, from checking the back of the license to facial recognition.
“We give them the option to decide what they want to do,” he said. Other industries are proving ripe for fraudsters to attack using stolen credentials. As Mr. Lewis mentioned, real estate is one notable example, where a fraudster impersonates a property owner and buys or sells his property from that owner. The auto industry is rife with serious dealership fraud, with criminals misusing credentials to apply for loans (and with a new car costing an average of $47,000, new cars are a lucrative business).
“We give them a website that they can log into, it’s branded for them, and they can send texts even if you’re standing right in front of them,” he said. Told. [individual] Otherwise you are thousands of miles away. ”This solution is particularly valuable for instant credit lenders, whose API connectivity and Intellicheck’s white label services allow him to identify identities (ranging from licenses to fingerprint data) before funds are disbursed. .
Digital identity 2025
Looking to 2025 and beyond, Lewis said digital wallets could become repositories for driver’s licenses and other government-issued IDs.
“Ultimately, digital wallets are going to be the way we all do everything,” Lewis said, adding, “When I got my first smartphone, I thought, ‘One day, this is going to be our life. “I thought, “It’s going to come to dominate the country,” he added. He believes that an unhackable format could go a long way in unifying the fragmented identity landscape.
He said the consortium approach will help banks, businesses and government agencies work together to create a standard “identity network.”
“Everything will come together,” he told Webster. “Because we’re all fighting the same organized crime syndicates. Everyone’s looking at how to make this happen,” he said, adding that regardless of the technology in place, the same principles apply. This applies to merchants, financial institutions and even law enforcement, he added. Ecosystem impact… How do you verify that they are who they say they are?
“If you’re not sure, you’ve put a fox in the henhouse,” he warned.
