This might sound strange coming from someone who markets fraud prevention solutions for a living but if a vendor tries to sell you a one-size-fits-all silver bullet solution that will prevent all forms of fraud… RUN.
The truth is, fraud is an extremely complicated and high-stakes game of whack-a-mole. As soon as industries develop a powerful way to prevent one fraud vector, fraudsters pivot to another. This is why fraud executives develop security flows that contain multiple checks to make targeting their company as time-consuming and difficult as possible. Remember, fraudsters will always pick on the easiest targets first.
Today, many banks and companies rely on document scanning as part of their security flow. While document scanning has a role to play in today’s fraud landscape, banks and companies that rely on them too much risk driving away customers and hurting their bottom line.
In this blog, I’ll provide an overview of what document scanning technology achieves and why you should use it primarily as a step-up procedure after a user has failed to pass a more frictionless, economical, and efficient verification method. If you’re already familiar with the core tenets of identity verification, feel free to skip the next paragraph!
There are three pillars of digital identity verification. As a user, you can verify your identity with something you know (i.e. a password, a PIN), something you have (a driver’s license or cell phone, for example), or something you are (think of this as an inherent and immutable trait unique to an individual—your fingerprint, for instance). Document scanning is an example of a possession check because they fall under the second pillar: “something you have.” Unfortunately, they have some serious limitations worth considering.
Here are 3 reasons why you should limit the use of ID scanning in your onboarding flow:
Think of ID scanning as your hot sauce of digital identity verification: a little goes a long way. Your bread and butter solution—the one that is used to verify the vast majority of your users should be more frictionless, less expensive, and easier to maintain. Prove’s phone-centric solutions check all three boxes.
Phone-centric identity should be used as the primary verification method in all use cases while ID scanning and other methods should be used as step-up checks in some cases. By leveraging something that the user always has on their person to conduct a possession check—the mobile phone—Prove provides a more convenient and smarter way to verify a user’s identity. Rather than having to retrieve their ID and try to scan it, users can simply click on Prove’s Instant Link. Prove enables companies to then check for the reputation and ownership status of the phone and even Pre-Fill forms subsequently with verified data. By leveraging a dynamic authenticator like the phone number rather than a static form like a driver’s license, companies can accelerate onboarding, reduce customer abandonment, and prevent fraud.
To learn more about Prove’s identity solutions and how to accelerate revenue while mitigating fraud, schedule a demo today.
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