3 Popular Misconceptions About Digital ID Verification

In our modern age, nearly every business is aiming to expand its digital footprint. To secure growth without succumbing to the variety of online threats facing organizations of all sizes across all industries, most companies utilize fraud detection systems that incorporate advanced ID verification tools. 

However, while many people don’t even realize it, the threat landscape has changed dramatically in recent years. The systems that would have been adequate for detecting fraud five years ago are now outdated and can pose a liability to unsuspecting users.

Despite the constant innovation by bad actors, your organization can still secure growth in the digital space by relying on robust, modern fraud detection and ID verification solutions. But first, you need to learn about a few common misconceptions around this issue that lead to vulnerabilities. Read on to understand what everyone gets wrong about ID verification and how you can avoid making the same mistakes.

Fraud Is Everyone Else’s Problem

The first thing to acknowledge is that new account fraud will likely impact your business. Perhaps it already has.

You may think that a large, established financial institution is a far more attractive target for fraudsters than a humble insuretech. While this may seem logical, keep in mind that bad actors are more focused on opportunities than targets. Sure, the potential take from a hit against a big bank is far greater, but that’s not necessarily the deciding factor.

Fraudsters are constantly testing digital defenses for any signs of weakness. If your organization is inadequately protected, they’ll recognize and exploit any opening. It doesn’t matter whether you’re running a leading health insurance company or a small entrepreneurial opportunity. If the bad guys see a way of slipping past your online fraud detection or duping your ID verification, you can bet they’ll take advantage.

You’re Stuck Relying on PII-Based ID Verification Systems

In years past, fraud detection software performed ID verification using PII. While this used to be a reliable means of authenticating new users, PII is now the perfect cover for fraudsters to gain access to those more sensitive areas of your site.

Between phishing attempts, malware attacks, and data breaches, there’s an incredible amount of compromised PII available on the darknet. Bad actors use these stolen or leaked details to pose as someone else or create a synthetic identity to fool outdated PII-based ID verification systems.

Although the days of relying on PII are likely gone forever, there are other ways to ensure your users are who they claim to be: the power of behavioral analytics.

There’s No Way to Predict Fraud

Behavioral analytics software disproves this myth every day. Instead of waiting for a user to submit PII, then judge their application to determine whether they’re genuine, behavioral analytics tools use pre-submit data to see fraudsters before they get into a position to strike.

Pre-submit data is essentially digital body language. It’s how users on your site interact with your application as they fill it out. When a user exhibits low familiarity with the PII they’re using for the application—a telltale indicator of fraudulent intent—behavioral analytics software flags the user in real time, allowing your organization’s step-up verification measures to rapidly intervene.

Advanced tools capable of identity orchestration sort users into genuine, neutral, and risky subgroups, so your real customers are never burdened by the step-up process. If you’re serious about fraud detection, these innovative tools are essential for your organization.

About NeuroID

Digital growth is about more than simply standing out. In addition to your competition, the web is also rife with bad actors who work every day to exploit vulnerable organizations. As a result, you need to employ cutting-edge software for superior new account opening fraud detection. That’s where NeuroID and its suite of sophisticated cybercrime detection tools can offer the solutions you need. Using the power of behavioral analytics, NeuroID offers identity verification software to help you combat fraud rings and other bad actors. The wide availability of compromised PII has created a digital identity crisis, so NeuroID uses pre-submit data instead to catch fraudsters early and engage your step-up verification. With crowd-level detection and identity monitoring from NeuroID, your organization can thwart digital threats and enjoy secure growth.

Enjoy enhanced fraud detection with innovative tools from NeuroID at https://www.neuro-id.com/