Smart Identity Verification and Authentication Solutions

Delight customers with seamless experiences while fortifying your defenses against fraudsters.

Identity Verification and Authentication Solutions

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Customer Interaction is a Changing Landscape

Customers are interacting with your business in ways they have never done before. They’re using multiple channels, different devices and becoming more varied as technology continues to evolve. Whether they are interacting in person, by phone, online or through a mobile app, they expect immediate, convenient and safe access. Identity-proofing solutions that cause inconvenience and hinder the process are frustrating — and damaging.

Over seventy-five percent of customers find it easy to switch brands until they find one that meets their expectations.1 

Unfortunately you cannot solely focus on meeting or exceeding your customers’ expectations. Fraudsters are also interacting with your business in ways they have never done before too. They have stepped up their game, testing vulnerabilities of identity verification solutions, capitalizing on market disruptions and causing damage to your bottom line.

Omnichannel businesses are challenged with consistently delivering excellent service to good customers while managing fraud risks across multiple channels. 

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Fraud costs continue to rise.

Financial institutions – increasing fraud costs

Every $1.00 of fraud costs financial services $3.64, up 12% from 20192

Lending companies – increasing fraud costs

Every $1.00 of fraud costs lending companies $3.90, up 13% from 20192

Increasing number of fraud attempts

The number of overall successful fraud attempts rose by over 37% from 2019 to 20202


Fraudsters are increasingly inventive. Limited or single-point identity verification and authentication solutions that were previously effective can quickly become obsolete, offering little to no protection. Businesses find themselves plugging holes as they find them, but they’re constantly playing catch-up.

In the 2020 edition of the LexisNexis® Risk Solutions True Cost of FraudTM Study: Financial Services Edition, we discovered some alarming trends. The average successful monthly fraud attacks have increased significantly for U.S. financial services and lending firms. Financial services saw an increase of 42% in successful fraud attempts and lending firms reported a 38% increase.2 This is a key indicator that fraud is becoming increasingly difficult to detect and prevent in these segments, as more sophisticated fraudsters are getting through fraud detection checkpoints.

With the huge surge in fraud attempts and successful attacks, no business can afford to ignore their fraud risk.

Verifying a Customer’s Identity Is a Top Challenge

Identification verification and authentication for cyber-crime analysis

Verifying a customer’s identity is the number one fraud challenge organizations face2. This is centered around a few main areas of concern:

  • Increase use of the mobile channel
  • Rise of synthetic identities and bot attacks
  • Need to balance speed of fraud detection with customer friction
  • Inadequate access to real-time, third-party data
  • Limited ability to identify geolocation
Organizations are feeling the impact of these challenges. A majority of banks reported double digit year over year growth in botnet activity.2 New account fraud rate is up 13% year over year.3 Synthetic Identity Fraud costs U.S. financial institutions over $6 billion a year.4

Companies are looking for customer verification services that can help them grow safely while managing the rising threat and cost of fraud. You need a way to fortify omnichannel customer interaction through identity and authentication services while simultaneously delivering a positive customer experience.

Quickly Identify Customers Throughout Their Journey

Organizations must rapidly adapt to evolving customer behavior and interaction points or risk significant losses in both fraud and customers. Inadequate ID verification services create gaps that can be exploited by fraudsters.

You need multi-layered and risk-based identity and authentication solutions that can differentiate a trusted customer from a fraudster, beginning with account origination to every visit and transaction that follows.

  • Account Opening — Who is the customer?

    The best protection from fraud is to thoroughly vet customers in the onboarding process at the beginning of the relationship. Verify your customer and gain a complete view of their fraud risk thoroughly with physical and digital identity information. Conveniently onboard your customers by requesting only the right information at the right time by utilizing active and passive methods. 

    Our identity solutions deliver critical identity verification information built from one of the largest compilations of consumer and business identity intelligence, covering 95% of the US adult population — including those with limited or no credit histories. Our powerful compilation of identity solutions deliver: 

    • Smarter identity decisions through a decision engine for seamless digital business 
    • Innovative features of fraud defense through behavioral biometrics 
    • Concise and intuitive identity insight to accelerate customer acquisition and drive smarter decisions 
    • Real-time confirmation of a customer’s identity to strengthen the customer experience and fight fraud 
    • Improved fraud detection by leveraging intelligence related to the associations between a phone number and an identity 
    • Identity insights, analytics and sophisticated scoring to stay ahead of evolving fraud threats
    • Succinct easy-to-interpret data to quickly detect valid and invalid email addresses

  • Ongoing Account Management — Is the customer who they say they are?

    When a customer who has been vetted and onboarded returns, you still need to confirm their identity. If you only employ identity-proofing techniques at onboarding, you’re overlooking potential fraud that can occur at login, through account maintenance and during transactions.  Authentication best practices suggest processes must be risk-based, streamlined, scalable and match the level of risk of the transaction.

    Our authentication solutions leverage the combination of extensive identity intelligence, advanced analytics and intuitive technology to accelerate identity authentication across multiple transactional channels. With an agile collection of authentication tools, your business can apply the right level of authentication based on the risk presented by each individual and seamlessly:
  • Authenticate customers with a one-time login code or a push notification
  • Implement real-time knowledge-based authentication to certify identity
  • Use the sound, pattern and rhythm of an individual's voice to determine identity
  • Validate identity documents across multiple transaction channels
  • Evaluate associations between a phone number and an identity
  • Strengthen multi-factor authentication efforts with risk verification checks against a phone number before sending a one-time password (OTP)

  • Payments — Is a transaction fraudulent or a false positive?

    While prevention is best, the sooner you can investigate a suspicious transaction, the more likely you are to mitigate the damage. You need tools to expedite the process. If the transaction is indeed fraudulent, there may be more victims. If the alert is a false positive, your customer has already experienced a roadblock. Move quickly to make it right, so you can avoid unneeded, time-consuming manual reviews and deliver the service your customers expect.

    Our powerful transaction solution analyzes billions of consumer records from more than 13,000 data sources. With our powerful linking and analytics tools, your business can accelerate automatic screening of orders and isolate suspicious transactions that warrant deeper review without impacting the speed of genuine transactions. 

Risk-Appropriate Friction Treats Valued Customers Like Old Friends

Customers and transactions come with varied levels of risk. That makes a one-size-fits-all approach to identification and authentication impractical. You don’t want to force your low-risk, easily-identified customers to clear tedious hurdles every time they visit your site. On the other hand, if your security measures are flimsy, you’re inviting fraudsters into your ecosystem. 

Identity management authentication should be based on risk assessment. Security processes must automatically adjust to the threat-level posed by the individual and the transaction. 

Customers expect and feel reassurance with a certain level of friction if they are conducting a high-value transaction, such as withdrawing money. Risk-appropriate friction in the payment process makes buyers feel safe. But for simple tasks, such as checking an account balance, your trusted customers expect ease and simplicity.

With flexible, customizable identity validation tools, your business can automatically personalize the level of authentication based on relevant risk signals and identity intelligence, all while minimizing friction for your valued customers.
Identification verification and authentication to reduce cyber-crime threats

Combine Physical and Digital Identity Intelligence for Superior Protection

Historically, identity verification meant validation of physical customer identity data. You verified a person’s physical documents. However, as more transaction channels have been adopted, physical documents alone aren’t enough.

To gain a more holistic view of the identity, risk and opportunity you must combine physical identity verification with digital identity proofing solutions. You need intelligence related to devices, locations, identities and past behaviors to accurately distinguish between trusted and fraudulent users.

Validate Identities on Every Channel

Customers are on multiple channels and devices throughout their day. They flow from one to another, expecting a seamless, consistent experience across all channels. 

Fraudsters use the omnichannel trend to their advantage. They obtain breached data, contact a call center to finesse additional information and then use the combined facts to open an account or create fraud through a digital channel. Your identity verification services must be able to distinguish a legitimate customer identity from a fraudster’s no matter which channel they choose to use.

Deliver an Elegant Customer Experience With Successful Fraud Controls

Identification verification and authentication cyber-crime lock
Sophisticated fraud attacks aren’t going to disappear anytime soon. They’re likely a permanent part of the evolving customer landscape. And unfortunately, as companies grow, they tend to open up more opportunity for fraudsters. Changes designed to attract more customers and increase revenue — adding payment mechanisms, launching online and mobile options, expanding globally — will create more opportunities for fraud if online id verification is not optimized.

Faster, more efficient identity verification services are a necessity. Organizations must deploy robust security that is cost-effective and has the least negative impact on the customer experience. After all, fraud and identity management isn’t only about your bottom line. It’s about developing long-term, high-quality relationships with your customers. But no single identity verification solution can combat all types of fraud, which is why a multi-layered, risk-based fraud defense strategy offers the best protection and is the future of identity management authentication.

LexisNexis® Risk Solutions offers world-class identification and authentication solutions. Modular and adaptive, our solutions can be customized to meet your business’s specific identity management needs and workflow. Contact us to learn more about our solutions that can help solve your identity verification and authentication challenges.

  1. Salesforce Research: Customer Expectations Hit All-Time Highs 
  2. 2020 LexisNexis® Risk Solutions True Cost of Fraud™ Study: Financial Services & Lending. https://risk.lexisnexis.com/insights-resources/research/US-CA-true-cost-of-fraud-study#financialservices
  3. Ibid.
  4. Federal Reserve white paper, Synthetic Identity Fraud in the U.S. Payment System

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