ATLANTA, June 15, 2021 /PRNewswire/ -- LexisNexis® Risk
Solutions and Forrester Consulting published research examining
the current state and challenges of identity verification (IDV) and
authentication solutions and how those processes become
increasingly critical in a post-pandemic world. The
research highlights how businesses can manage these activities
in a way that produces benefits for both the business and
consumer.
The report found that companies rank identity verification as
highly important for maintaining customer relationships, security
practices, fraud prevention and brand reputation with businesses
seeking more accurate and holistic IDV coverage to improve process
accuracy and achieve optimal fraud control across channels.
Organizations are eager to confidently manage and support
consumers while decreasing security threats and building trust,
particularly during a time of digital transformation accelerated by
the pandemic. IDV processes are essential in creating a strong, low
friction customer experience. Sixty four percent of respondents
said the pandemic increased or significantly increased the
importance of their IDV and authentication processes and 71%
increased prioritization of customer experience.
The research confirms that organizations are aware of the
increase in potential fraud caused by the expansion of online
consumer activity and in response are prioritizing the importance
of identity management. Eighty six percent of survey respondents
say their organization plans to evolve their IDV processes within
the next 12 months by making investments to increase the number of
risk signals, be better prepared for emerging fraud threats and
improve customer experience.
Forrester's Key Recommendations for Identity Management
Decision Makers:
- Use a combination of technologies for additional risk
signals and more accurate results – No single technology
will typically provide total protection against all types of fraud.
Organizations report that they often procure and use multiple
verification methods for a more enjoyable customer experience and
greater fraud protection. Greater market consolidation has now made
it easier for organizations to source multiple IDV technologies
from fewer vendors.
- Deploy IDV methods to protect all channels – Respondents
say that IDV during customer onboarding must uniformly cover all
major channels, including online desktop and mobile web, native
mobile applications, interactions with chatbot/intelligent agents
and contact centers.
- Ensure teams actively monitor emerging threats and fraud
typologies – Firms must proactively update fraud detection
models and actively research new fraud patterns such as synthetic
identity fraud, bots, account takeover, etc., to react quickly to
emerging threats. The use of cloud-based fraud management and IDV
services can help as it greatly reduces the need to constantly
update the IDV solution's threats and fraud insights.
- Constantly measure the effectiveness of machine learning
models – The survey shows that successful IDV solutions
increasingly use machine learning models. Risk scoring models
should consistently maintain and improve key performance indicators
(KPIs) to stop fraud and perform IDV processes more cost
effectively and in a way that is least disruptive to the customer
experience.
"Forrester's survey findings give us a better understanding of
how our customers and other companies around the world are adapting
to the new normal of the digital economy," said Kimberly Sutherland, vice president of fraud and
identity strategy at LexisNexis Risk Solutions. "Companies rely on
strong identity verification and authentication to create the
trusted experience that their customers expect.
"The past year of the pandemic only served to accelerate the
existing online activity trend," Sutherland continued. "Many
organizations have committed to strengthening their fraud
prevention policies, but those that have not risk getting left
behind, resulting in poor consumer interactions and decreased
revenue. The right solutions layered together builds a tighter web
for optimal fraud prevention. This survey definitively concludes
that combining both physical and digital identity attributes can
transform the way businesses engage in commerce."
The research surveyed 426 global fraud and identity
professionals in the UK, Brazil,
Canada, China, France, Germany, Mexico and the U.S. in sectors such as
technology, retail, manufacturing, financial services and
telecommunications.
Download a copy of the Identity Trust Transformed report and
join Forrester Consulting analyst Andras
Cser and Kimberly Sutherland
Wednesday, June 16th at 11:00am ET to
review the report findings.
About LexisNexis® Risk
Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced
analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around
the globe. We provide data and technology solutions for a wide
range of industries including insurance, financial services,
healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information and analytics for professional and business
customers. For more information, please visit
www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Marcy
Theobald
678.694.6681
Marcy.Theobald@lexisnexisrisk.com
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SOURCE LexisNexis Risk Solutions