Four Techniques for Identification Verification in Fraud Prevention


24 Jun

For a lot of businesses in the current world, one of the most important components is identification verification. This is even most essential for e-commerce companies and financial institutions. All over the world, there are anti-money laundering rules and know your customer regulations which are used for identity verification. In most cases, these regulations are unique to a given country where they are enforced. All the techniques are normally categorized in several ways. The following are the broad categories for the techniques for identity verification.


Knowledge-based verification is on top of the list for these Microbilt's fraud prevention tools techniques. This technique asks a question where a given answer is needed for the verification of the identity of the individual. Usually, the questions are easy for that specific individual to answer but challenging for any other person to have an answer for. For the KBA, there is also an extra safeguard where the individual is needed to provide an answer to the question paused within a set period. One of the key benefits of this method is one of the simplest methods for the comprehension of the user. However, with the advent of social networks, it can be easy to get the answer for anyone else.


Two-factor authentication is another common technique for identification. Usually, it needs the user to give some type of personal identification which in other words is called a token besides the password they give. It is expected of the users to have memorized the token which could be a code they might have gotten from the agency. This is one of the ways that prevents any form of fraudulent activity from happening. This is one of the most beneficial techniques in the resetting of passwords and the creation of new accounts.


Credit-bureau-based authentication is the technique that relies on information received from some credit bureaus. These are firms that have a huge amount of credit information on consumers. Such personal information includes social security number, name and address of the individual. To avoid the compromise of the user`s experience, this technique employs a score for the creation of a definitive match. Check out and use this tools now!


The database technique requires the use of data from different sources for the verification of the identity of an individual. It could be the database from the social media networks and also for some cases, the databases could be offline. Normally, their usage is for the assessment of the risk posed by the user as there is a significant reduction in the need for manual reviews. You can also click this website for more facts about background screening, go to https://en.wikipedia.org/wiki/Information.

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