Fighting Online Fraud with Multi-Factor Authentication Solutions
In a world that’s moving towards complete digitization, how can a business distinguish between fake and real? As a business, the need of identifying a real person from a fake one is vital. Identity authentication solutions help in verifying customer identities. Using multi-factor authentication (MFA), and knowledge-based questions, businesses can reduce the risk of fraud and increase customer-business trust.
One widely used MFA is using the mobile number for sending a unique 6-8 digit code to the customers. This is a common method of authentication because:
- Mobile phones are widely available. Over 62% of the world’s population uses a mobile phone.
- Easily accessible. Most people carry their phones with them at all times.
- More convenient than any other method of MFA.
Mobile Number for Verification
Using mobile numbers as a method of verification consists of:
- A customer/potential customer provides their phone number to the business
- A text is sent to the phone number, it contains a unique, time-sensitive code
- The person is authenticated if they enter the right passcode
While the process is simple, it supports one element of customer authentication. Strong customer authentication (SCA) which verifies customers using something a customer has. By entering the unique code, a customer confirms that they have the phone with them.
Combining this with another method of authentication, mobile number verification passes the bar set by EU requirements for SCA. Not a lot of businesses are obligated to comply with SCA, still, the use of mobile verification offers some benefits. Using multiple channels for customer authentication is extremely helpful for the financial sector as it provides a robust security model.
Verification and Authentication
Using a mobile number for customer verification only indicates that a person has access to the number. It is easy to activate a mobile number using synthetic identity and can be easily created on internet-based phone and text services without any ID requirement. If a firm relies on mobile checks for verification, it’d have a higher chance of authenticating fraudsters.
Verifying the legitimacy of a person includes confirming that they exist, which is fundamental to ensure that the authentication process is efficient and effective. Cross-referencing the information provides a solid base for authentication. Having precise identity data with an authenticated mobile number delivers increased assurance.
Identity Two Factor Authentication
There are online document verification methods that help in the process of identity multi-factor authentication. These services make sure that only real mobile numbers can be used for mobile numbers, thus filtering out bad actors who use VOIP services.
By adding the additional authentication layer, bad actors face extra friction to establish, use or modify any account, while legitimate users can quickly continue with their activities.
Online Document Verification for Customer Verification
Some customers are hesitant to provide their mobile numbers before starting a customer relationship. This is where online document verification for verifying customer identities. Distinguishing between fake and real people is crucial for banks and financial institutions to reduce fraud.
DIRO’s online document verification service verifies online documents from all over the globe. DIRO supports banks, healthcare institutions, financial institutions, and more by providing a new and unique approach towards online document verification.
With DIRO, entities can verify customer documents instantly. DIRO 100% eliminates the use of fake and stolen documents by cross-referencing document data with original sources.
With over 7000+ types of documents, DIRO is a global platform. Backed by forensic data and 100% proof of trust, DIRO verifies documents such as bank statements, driver’s license, utility bills, tax documents, insurance documents, student records, and more. Implementing organization-wide KYC & AML compliance is also easier with DIRO’s technology.
