An IDC Innovators report has been published profiling four companies that are considered key emerging vendors in the identity proofing solutions market. The four technology providers named as IDC Innovators are Socure, BioCatch, IdentityMind Global, and Acuant.
Verifying the legitimacy of new identities is a key step in the customer onboarding process. Increased regulatory pressures on know-your-customer (KYC) processes and higher levels of new account fraud necessitate that financial institutions improve their ability to accurately differentiate legitimate identities from fraudulent ones. However, customer onboarding and identity verification often involve considerable amounts of manual effort that can produce high rates of false positives and are unable to distinguish synthetic identities, putting firms in a position of higher compliance and fraud risk.
“The key to limiting fraud starts with understanding who you are doing business with. As digital accounts and services continue to grow, banks cannot rely on older solutions that may not be effective today. They must look to solutions to prevent fraud and maintain adequate compliance,” said Steven D’Alfonso, research director, IDC Financial Insights. “Each of the vendors identified as IDC Innovators approaches the issue of preventing new account fraud in different ways and each solution is distinct from the others.”
Acuant uses a layered approach to document and identity verification that includes physical ID and data capture technology to reduce manual errors, facial biometric verification, and the industry’s largest identity document library.
Biocatch can verify the authenticity of a digital identity on the initial appearance by using behavioural biometric technologies to assess a user’s interaction with the device being used, the data being entered, and the bank’s online account application.
IdentityMind Global minimizes new account fraud by orchestrating data from its partner ecosystem to identify and filter out synthetic identities and segment high risk and suspicious identities for further monitoring and analysis.
Socure provides an advanced predictive analytics platform that uses deep learning technologies to produce highly accurate assessments and validations of digital identities in online channels.
The report, IDC Innovators: Identity Proofing Solutions to Prevent New Account Fraud and Enhance KYC Compliance, 2018 (IDC #US43054918), profiles four emerging technology providers offering identity proofing solutions. The solutions help financial institutions to verify digital identities, prevent new account fraud, and enhance KYC compliance.