Identity Fraud: How Big Is It and What Can We Do?

Identity Fraud: How Big Is It and What Can We Do?

This IDC Perspective discusses the fraudster techniques and how to overcome. Identity fraud can occur anytime during the customer life cycle, which starts at a customers' onboarding up through and including their account closure, hopefully many years in the future. Implementing a robust and secure identity program is key for financial institutions to mitigate financial risk and reputation risk. Identity programs also need to maintain compliance with all jurisdictions they operate in. Customers understand the desire to mitigate fraud; however, they do not want to experience excessive friction in the process. What is customers' best option for identity authentication? Multifactor authentication (MFA)? Biometrics? Fraudsters will explore every weakness and exploit where they can. According to Kevin Dolan, research director, Worldwide Fraud, Compliance, and Risk Analytics Strategies, "Identity fraud is one of the largest fraud categories today by volume of complaints and financial loss. Financial institutions should become comfortable with the fact that more and more business will be done online and positioning a cutting-edge identity solution at the center of your customer relationship is key."

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