May 2019 | Fraud Prevention

Risk Based Authentication

As discussed in our previous blog ‘What is the difference between validation, verification and authentication?’, the data elements for identity validation don’t carry a high level of certainty that it is you and while identity verification, can significantly increase the confidence that the person is who they truly say they are, this is often accompanied with more friction in the customer journey. So how do you solve this? Through the implementation of a Risk Based Authentication approach.

Risk Based Authentication is a much more secure way to determine that an individual is who they say they are, by building upon validation and verification methods. This approach allows you to connect both offline and online identity data with machine learning models, which creates a risk score based on the individual’s behaviour, to better understand the customer’s identity.

Technology today allows you to simplify the validation and verification exercises which require extensive information gathering. By using simple validation steps with telephone and email addresses, the sophistication of advanced analytics such as machine learning and a real-time picture of the individual and a picture of a government issued identity such as a passport, you can quickly verify and authenticate the customer.

At Experian, we’re constantly innovating and finding new methods for authentication. Within Risk Based Authentication, we can now conduct more in-depth verification checks while providing a much better customer experience. By comparing a selfie against a Photo ID, you can conduct a validation check, and a multi-factor (using more than one piece of evidence) verification check in under two seconds, as well as taking consumer data from the ID to auto populate data fields within the application process. All with the customer only entering email and telephone information, a selfie and a picture of an identity document.

To achieve this, you need the most recent technology and the latest data science and analytics techniques sitting behind the scenes, which are critical to manage the volume, speed, accuracy and of those actions.

At Experian, this is something we’ve heavily invested in with 3,000 data scientists and a global analytics team dedicated to evolving our identity suite of capabilities. Why? Because data science and analytics are already having a massive impact on how businesses operate online in the future. Not only will companies be able to verify customers identities in a quicker and easier way, therefore reducing friction and improving customer experience, but be able to complete an ongoing assessment to ensure that the customers are who they say they are to protect the customer and the business they interact with from fraud.

We’re at a point where the convergence of online and offline identities creates a richer and fuller picture of individuals and we’re excited about how we can move this forward, where passwords become a thing of the past, passwords which often create the most vulnerability. So, from buying clothes or transferring money with your bank, your customers will have a smooth, secure and efficient process to ensure their identity is safe.

To find out how Experian can support you to tackle identity fraud and provide faster, more satisfying experiences for genuine customers, contact us here.