The digital revolution has enhanced how we shop, pay our phone bill or purchase a home. But it comes with a downside: people’s personally identifiable information (PII) is increasingly being compromised in data breaches then used by criminals to take over accounts or to make new, fake ones. Part of the problem is that it’s harder to verify the identity of a user online, in a faceless environment. In an online setting, a criminal armed with the right login information can appear to be a legitimate user. This makes identification and authentication crucial components of any company’s fraud protection efforts. In order to avoid fraudulent interactions, companies need to verify that the consumer is who they’re supposed to be. To learn about the state of fraud, the importance of identification and authentication, and what solutions exist to help companies stay ahead of the fraudsters, PaymentsJournal sat down with David Barnhardt, Chief Experience Officer at GIACT. Joining us in the conversation was Tim Sloane, VP of Payments Innovation at Mercator Advisory Group. PaymentsJournalStay Ahead of the Fraudsters with gIDENTIFY Persistent MonitoringPaymentsJournal Stay Ahead of the Fraudsters with gIDENTIFY Persistent MonitoringPaymentsJournaljQuery(document).ready(function ($){var settings_ap38875163 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"38875163",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_83075_2",settings_ap38875163); }catch(err){ console.warn("cannot init player", err); } }); Identification & Authentication in the digital world As more interactions shift from the physical space into the cyber one, financial institutions are moving quickly to find solutions to verify the identity of consumers. A common practice is for consumers to create an account then use that account as a means of verifying themselves in an interaction. However, creating an online identity that can be verified “requires a range of high-tech capabilities,” explained Sloane. For example, Sloane noted, a successful identification solution needs to be able to determine if the accountholder is still alive, rather than it being someone else using the deceased person’s account. An effective solution also requires the ability to utilize behavioral biometrics generated by the user using the mobile app or website. You then need risk policies to understand if an individual qualifies as high-risk or not. Sloane pointed out that the exact configuration of technologies varies by use case, as different processes exist for creating a healthcare account versus a bank account, for example. In any case, a large amount of PII data is being generated and stored, meaning that proper security measures need to be put in place. If a company fails to secure the PII, it may face fines and substantial reputational harm.