For a long time, we’ve seen a growing gap between generations. But, is this gap still as far apart – or further? And what does this mean in the instance of fraud prevention or identity verification? It means we must be vigilant and understand the trends, the use cases and the journeys of everyone as individuals so to identify threats, weaknesses, and opportunities. But, we must seize the opportunity. And ultimately consider the changing landscape.
The older generations might not be as tech savvy as their younger counterparts, but few don’t use the internet any longer. Currently, a third of those 55+ use the internet 3 times a day (according to our recent research), whereas 3 years ago this was once a month by a much smaller proportion. Digital adoption across all ages is therefore rising and presents an opportunity, as we can assess and understand each person in real-time, but also a threat as more and more people are exposing their lives online – and therefore their personal data. Figures from the 2018 UK&I Fraud Report show that in 2017 the over 60 cohort are 27% more likely to be victims of fraud than in 2014. The rise in this age group becoming victims of fraud is likely an amalgamation of more online presence as well as fraudsters attempting to obtain high value funds such as pensions or invested savings.
Mobile – great for customers and preventing fraud
Today, viewing mobile as just another channel is a little short-sighted. Deloitte’s sixth annual Mobile Consumer Survey has found that four out of five adults now have a smartphone . Therefore, mobile is an integral channel for reaching and engaging customers of all ages. Mobile technology is not only a tool to enhance customer experience, but it can also raise productivity in other channels and in other areas and be a highly effective tool for detecting fraud. Device recognition, as part of a multi-layered fraud protection strategy, can identify different devices being used across different channels therefore can spot suspicious activity and stop fraud before it impacts your customers.
The digital economy – more data to identify individuals
We’re no longer reliant on assessing an identity document manually, we are armed with data and advanced analytics, such as machine learning, that can be much more accurate and assess such documents to a much more granular level. This enables you to be even more effective in identifying if the person is who they say they are and quickly spotting forged or altered documents. In addition, todays ‘digital exhaust’ can provide you with a digitised profile of an individual which contains even more critical data points that can be considered. Historic data as well as real-time data can today be brought into a single decision process
If we’re to maximise the opportunity of being able to identify people, to therefore reduce the threat of fraud, there is a need to consider the trends in the wider business, and market landscape. Consider the tools people are consuming and trends which may transcend through other areas. There is an opportunity today to create a strategy that is equipped for this. That can allow you to connect new prevention techniques, tweak and push live in a few hours – in seconds for some. It’s important to consider what tools offer what benefit, to who. From a customer perspective today a selfie, photo, email and phone number can negate form fills and from a business viewpoint they can conduct more fraud searches than traditional form fills therefore much more effective and accurate.
Whatever the approach you take you need the ability to constantly address rising, or occurring threats. A platform that could help is Experian’s CrossCore solution, a single smart plug in platform, enables you to connect all your fraud controls in one place. This allows for easy adoption of new fraud tools and data and increases agility. CrossCore also has machine learning capabilities that are able to spot emerging trends in data which would otherwise not be picked up until causing a business noticeable losses or challenges, future-proofing fraud prevention as fraudsters change their methods of attack.
With nearly 4 out of 5 people using mobile phones to access the internet , how likely is it that applicants will all have the correct documentation with them first time round?
Download our risk based authentication infographic to find out how Experian can help protect your business and customers against fraud without compromising the customer journey.