News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Companies Recognize Importance of Identity Verification but Few are Fully Effective: Report

Companies Recognize Importance of Identity Verification but Few are Fully Effective: Report

The tension between providing a frictionless experience for users and protecting a business’s bottom line from fraud is ever-present and is complicating effective identity verification. Unfortunately, according to a new report, while many companies recognize the need for it, not many do it well. The Whitepages Pro research found that organizations overwhelmingly (93 percent) cite identity verification as a priority.

Only nine percent, however, say they have an automated solution for identity verification that verifies and links multiple data elements. The largest share of respondents (49 percent) say they are consistently using identity verification that leverages more data and they may be experimenting with finding more linkage between those data sources, but are not using a fully automated system. One-third of those polled said their companies are attempting identity verification, but are not doing it consistently.

“Simultaneously fighting fraud while creating a positive, frictionless experience for customers is a high-wire act for most online businesses,” said Ajay Andrews, director of product management for Whitepages Pro. “Identity verification is critical to achieving both priorities, which is why there is so much interest in doing it well.”

The report also found that only 13 percent of respondents think they have sufficient data to effectively verify the identity of their online customers.

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