8 Essential Identity Protection Tools Your Business Needs
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Many businesses nowadays are better at fighting identity fraud, with the overall fraud rate declining. However, there is no complete way to protect yourself from identity fraud.
Moreover, cybercriminals love long-hanging fruit, and putting up your defenses can make you a more challenging and less appealing target.
In this post, we’ll walk you through the eight essential identity protection tools that your business can use. These will help your company from identity theft, keeping it more secure.
1. Electronic identity verification
The compliance of Know Your Customer (KYC) and Know Your Business (KYB) can be tricky. To streamline the process, many companies are turning to electronic identity verification.
This moves away from the conventional, paper-based system and instead utilizes private and public databases to verify the individual’s identity and then digitally address this information. It also prevents fraud or forgery that might otherwise be taken from user-provided documents like utility bills directly from the source.
Aside from that, an automated id verification streamlines the entire experience for both your business and your customers because it replaces lengthy manual processes.
2. Dual-factor authentication
Dual factor authentication usually happens when you require your customers to place at least two vital pieces of data so that they can verify their identity.
When it comes to online banking, ideally, you want to develop a system that has dual-factor authentication every time a customer signs in from a new IP address. So, after they enter their username and password, your online banking service will show them a pop-up that will require them for additional information.
At this stage, your system will send them a passcode via email or phone. To access their account successfully, your customer has to enter this code. In the same way, you should consider getting dual-factor authentication for in-person transactions.
Aside from having customers show their IDs to the teller, you have to let them identify their identity by running their ATM card and entering their PIN. If you don’t have their card, you might want to ask them additional questions like their last deposit amount, balance, and other essential details.
3. Password manager
A password manager is usually a program that generates and stores account usernames and passwords. Some password managers provide mobile apps besides browser extensions and other downloadable data and programs.
Using your password manager, you can quickly develop unique passwords for your accounts without having to write or memorize every one of your passwords. Having various passwords for all your accounts, you can easily keep them secure, significantly if the log-in information from one of your accounts is compromised.
From issuing government IDs to unlocking your mobile phone, biometrics cater to various IDV requirements. In fact, both behavioral (signature, voice) and physical (face recognition, fingertips) are slowly gaining ground in the banking industry.
Still, while the recent guidelines from the Financial Action Task Force (FATF) acknowledge the massive growth and convenience biometrics bring, they also warn people to be wary of the permanence of biometric information and the dangers that come with data that are stolen from centralized databases.
5. Device fingerprinting
In a nutshell, device fingerprinting is a forensic technique that’s used to identify every purchase of a device in question. What this tool does is that it gets unique information on the hardware and software that’s installed on the device that visits your site. Doing so lets you block devices associated with bad actors from previous transactions. It also helps you track your trusted devices.
Moreover, this tool will help you identify any suspicious activity that could suggest any signs of fraud, like an account takeover. If an established customer happens to access an account from an unfamiliar device, this will immediately flag the transaction for further examination.
6. Machine learning
Machine learning gives you real-time insights into the most common fraud red flags. These transactions can either be outright rejected or set aside from manual review.
Also, the more data you have, the more accurate the system’s decisions will be in the long run. That’s because this system is more equipped to detect warning signs of fraud. Your system will learn to detect fraud gradually over time, with much greater accuracy.
7. Fraud scoring
Now, we move on to fraud scoring. This fraud detection tool allows you to examine every transaction that’s based on numerous fraud indicators. Then, it will give you a composite score that will show you the level of risk per transaction.
Fraud scoring allows you to engage in simple up or down decisions. You can quickly get rid of transactions that automatically raise many red flags. Similarly, you can also subject these transactions to manual review. Ideally, it would be best to put dynamic rules into the process for the best results.
8. Virtual private network (VPN)
A VPN is handy if you don’t want to log in to important accounts or enter your payment details when connected to a public WiFi network.
Even password-protected networks could be unsecured if your password can be easily accessed, like in a local cafe. Ensure you also add a password to your home network if you don’t have one yet.
Also, if you’re using public WiFi, a VPN can build an encrypted connection between your computer, mobile device, and the VPN server. Over time, this kind of setup can potentially decrease the risk of someone stealing your data. However, it wouldn’t protect you from every attack or scam.
So there you have it. These are the eight essential identity protection tools to keep in mind that you can use for your business.
Now, can your business be completely safe from identity fraud with all these tools? Well, the thing is, fraudsters may invent new tactics in the future. But the most crucial part is to stay updated with all the available tools so you won’t easily fall behind in this highly digital age.
Although there is no one-size-fits-all strategy, as identity fraud constantly evolves, so will fraud prevention tools being introduced in the market.