Balancing security and convenience: Leveraging digital identity to prevent synthetic ID fraud

Balancing security and convenience: Leveraging digital identity to prevent synthetic ID fraud

To prevent synthetic ID fraud and account take over fraud, while ensuring a smooth account opening and account login experience, financial service (FinServ) organisations can adopt a multi-layered approach that leverages identity verification solutions and customer profiling. By analysing customer data, FinServ organisations can tailor marketing campaigns and identify potential customers who are more likely to open an account. They can also use authentication and verification processes, such as behavioral biometrics and document verification, to prevent fraud.

Maintaining a balance between security and convenience is crucial to the customer onboarding process and managing the experience of returning users. FinServ organisations must provide a user-friendly interface, clear instructions, and swift verification processes to ensure a frictionless experience for customers. By layering the account opening process workflow with third-party data and behaviourial signals, FinServ organisations can acquire more customers while minimising synthetic ID fraud attacks from account takeover and payment fraud.

• How can FinServ organisations leverage data analytics and customer profiling to identify potential customers during onboarding process? 
• What are the most effective authentication and verification processes for FinServ organisations to prevent synthetic ID fraud / ATO fraud without compromising the customer experience?
• How can FinServ organisations ensure a frictionless account opening experience and account login while maintaining a high level of security?