This is a guest post composed by Oleg Vaisman, Marketing Manager for Regula Forensics.
Previously an opportunity and nowadays a necessity, digitalization is growing in popularity on a daily basis. However, together with all the benefits it brings, organizations have to think one step ahead and mitigate the risks it brings. A recent study by Javelin Strategy & Research showed that identity fraud was as high as $56 billion in 2020. Interestingly enough, almost one-third of victims said that their financial service vendors did not provide enough safety measures and that led to their decision to close their account with that particular vendor.
Billions of dollars were recently stolen from unemployment benefits, according to NBC, as fraudsters targeted the state’s Employment Development Department since the wave of applications was enormously high. That may have happened due to the fact that with the rapid development of digital transformation, financial services moved way too fast with features like online onboarding and raised the opportunity for security risks.
Since a vast majority of people are saying that they are reassessing their financial services needs and usage, Regula finds it relevant to comment on the recent solutions to be one step ahead of fraudsters.
Trust is a key factor in decision making and therefore providing that trust is an obligation. The industry has learned a lot during the last year, and we all live in a new reality. Now, consumers are willing to open new accounts virtually since the digital world has augmented the traditional one in a lot of spheres. Financial services should not lag behind, and should provide a unified, seamless experience regardless if it is a remote or an offline channel of communication.
Even though banks want to ease the onboarding process, they must not forget about the safety measures and make sure they have relevant security steps.
One of those steps is to know the identity of the user, or KYC (Know Your Customer). Regula gives you all the instruments to build your own, tailored KYC flow. Regula Document Reader SDK and Face SDK provide financial service providers with instruments that allow quick and easy onboarding for legitimate customers. On the other hand, the steps are not available to the fraudster, since they will not pass a face match check that is standard for that kind of security measure.
Many organizations rely on a couple of vendors for identity verification and that brings vulnerability. However, combined with advanced technologies and with more than 25 years of forensics experience, within one solution you are able to detect likely fraudulent IDs and combine it with biometric verification. For the client of a financial services provider, that solution is intuitive and streamlined, and at the same time drives up the level of trust. For the internal team of the financial services provider, the solution is integrated like plug and play, minimizing the operational inputs.
Learn more about how Regula protects financial institutions on the company’s website.