Secure Identities in 5 Steps
STEP 1) Evaluate your activities
Banks interact with their customers in many ways. A structured way to evaluate your activities is to divide all your activities into four boxes along the axis of risk and frequency in order to better see priorities and degrees of focus.
Each set of activities requires a different tool. For example, High Risk / Low Frequency activities need a behavior-driven, two-factor identity approach maybe with a biometric or multi-factor approach with a graduated, account-opening strategy. Aligning tools with processes is essential.
Below is a sample:
STEP 2) Organize your identities
By having a complete view of all applicants and existing accounts, systems get smarter. Strange behavior on an existing account, such as that user’s social security number attempting to open three more accounts, likely is fraud. Only through keying at account opening and managing that key through an account lifecycle can you protect with internal data.
STEP 3) Segment your incoming traffic
Monitor the interactions that customers are having. Did they check their balance, leave, then come back and clear out an account in one payment to a new payee? Has this customer tried to access an account three times today? Fraud and behavior models can help say who is likely to commit fraud to keep the big costs down and the customer experience up.
STEP 4) Put the right tools in the right places
If your strategy is segmenting well, then knowing when to use knowledge-based authentication, when to use two-factor authentication, and when to take no action becomes easy. Model + tool = ROI on business enablement.
Business enablement isn’t very helpful without business continuity. Make sure your High Risk / High Frequency tools come with reliable contingency plans to ensure customers can always access their data. Best of breed two-factor authentication means pass codes through a variety of channels.
STEP 5) Study your results, Adjust, and Optimize
Fraud patterns change regularly. Studying internal results with external analysis can result in tighter and tighter segments, better interaction management, and the safest, most streamlined identity process possible.
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