Ensuring the security of the information and funds entrusted to financial firms positively affects their ability to maintain consumer trust and comply with regulations. Failure to implement necessary security measures results in costly consequences.
Fraud has long been a problem in the financial sector as criminals are often motivated by monetary gain obtained through illegal activities. Data breach, identity theft, and account fraud, among other illicit modus operandi, are some threats that continue to challenge financial firms.
With the evolving trends and practices in the industry, businesses are forced to adapt to these changes. However, criminals also are keeping up with the latest security measures implemented by most companies.
They often try to find vulnerabilities in the system to circumvent identity verification methods so they can perpetrate their criminal acts.
Criminals have gone past forgeries and the creation of fake accounts, and with modern tools, they are able to devise new ways to commit fraudulent acts.
Identity verification is paramount in mitigating these criminal activities. Moreover, identity verification regulations mandate institutions to implement necessary authentication procedures before onboarding clients or authorizing transactions.
When it comes to digital banking, the Federal Financial Institutions Examination Council (FFEIC) recommends the use of multi-factor authentication. This process involves the use of two or more of the following authentication criteria: something you have, something you know, something you are (biometrics).
Companies like Ipsidy offer Identity as a Service (IDaaS) solutions, including biometrics, to help businesses keep their companies secure, comply with regulations, and provide customers with seamless user experience.
Firms need the best multi factor authentication solution to prevent unauthorized individuals from accessing their services. By leveraging technology to their advantage, financial institutions will also be able to strengthen consumer trust and improve their brand’s reputation.
Ipsidy provides the following infographic to disseminate the significance of deploying sound authentication methods in curbing fraud in the financial industry.