Identity Proofing: A Holistic Solution for Financial Institutions

One of the foundational challenges that financial services institutions face is understanding who is actually on the other end of a transaction.

The solution to this dilemma, according to Javelin Strategy and Research, is a holistic approach that understands the context around the identity and behavior of the applicant throughout the entire customer lifecycle.

Javelin Security and Research has just released its Identity Proofing Platform Scorecard, looking at technology vendors, such as ThreatMetrix, that are taking this holistic approach and bringing identity into the digital age. With the help of this tool, businesses can embrace digital-first solutions to help them understand who they are truly dealing with online.

Breaking Down the Silos

The anonymous nature of the Internet, as well as the tsunami of data breaches, has made the task of accurately identifying a user incredibly complex. Previously, identity solutions were siloed, and only looked at part of the customer identity. Identity verification focused on validating personal information using public records and credit reports; whereas at the authentication stage, it was assumed that the identity is valid, and the focus shifted to assessing whether it’s the same person accessing an account that opened it.

This bifurcated approach no longer meets the needs of digital businesses dealing with ever-more sophisticated cyberattacks across the customer lifecycle. And the availability of personally identifiable information on the dark web have rendered the traditional approach centering on static data obsolete and ineffective.

By using a more holistic approach, organizations get a more accurate view of the person they are transacting with. From new account applications, to new device enrollment, and everything in between, any solution adopted by financial institutions must have a wide range of capabilities to accurately discern between fraudsters and legitimate customers.

But, with a plethora of identity solutions available, organizations can struggle to find the one that best fits their needs.

Proof of Identity

Enter Javelin Strategy and Research and its 2017 Identity Proofing Platform Scorecard. This inaugural report was created to be a guide for financial institutions to navigate the identity proofing vendor landscape, and assessed vendors that are merging identity verification and authentication.

The report assesses companies on three criteria: current capabilities to assess the digital identity of individuals; their long-term vision and ability to innovate to solve tomorrow’s emerging problems; and the flexibility and ease of integration of the product.

Hot on the heels of the ThreatMetrix announcement of our revolutionary new technology, ThreatMetrix ID?, we were delighted to be named leader in the Innovative category. ThreatMetrix combines offline and online identity data to help organizations determine the true digital identity of their users. This is expressed as a unique customer identifier, ThreatMetrix ID, which is persistent for each digital identity across our global network of 1.4 billion users.

We see this as a game-changer for the industry, providing digital businesses a unique way to understand who they are transacting with online.

ThreatMetrix was also recognized in as a leader in the Tailored category, based on ability to integrate with client systems and adapt to their needs. In the past 12 months ThreatMetrix has invested heavily in our Dynamic Decision Platform, which has transformed the company from a world-class data feed to an end-to-end platform that is fully customizable depending on the client’s needs.

Offering plug-and-play integration of a rich variety of identity verification and multifactor authentication solutions, along with an array of capabilities including advanced behavioral analytics, machine learning, case management and reporting tools, our platform is designed specifically to be tailored to the exact needs of our clients.

This recognition by Javelin validates our position that a digital identity-centric approach can truly help businesses solve the evolving digital transformation challenges across customer touch points.

The Identity Proof(ing) is in the Pudding

Banks and financial organizations around the globe are already turning to digital identities in the battle against fraud and cybercrime – with impressive results.

TSB, one of the largest banks in the United Kingdom, was seeing a rash of cybercriminals applying for new accounts with stolen identities and taking over customer accounts with malware, remote access Trojans and advanced social engineering tactics. Using Digital Identity Intelligence from ThreatMetrix, TBS realized a near 100-percent detection of fraudulent accounts, as well as reduce online interruption for trusted customers.

In the wake of so many large-scale data breaches, and increasing sophistication from fraudsters, financial institutions are becoming increasingly reliant on identity-proofing solutions, that are custom-fit for the digital age.

To learn more about how ThreatMetrix earned two leadership awards in the identity proofing vendor landscape, download the Javelin 2017 Identity Proofing Platform Scorecard here.