Organizations know that identity verification is an important process needed for preventing fraud, especially in a customer-not-present environment. However, establishing a customer’s identity during the account setup phase is not the only way organizations are tasked with fighting fraud. In addition to acquiring new customers, businesses must also meet regulatory compliance standards, while at the same time increasing revenue and improving efficiency.
Insight into accounts and identities is needed to accomplish these goals because it gives organizations the information they need to make better decisions that support their CIP due diligence. With fraudsters continually innovating and attacking in new and sophisticated ways, how can organizations keep them out of the equation? Enter adaptive identity risk scoring.
What Is Adaptive Risk Scoring?
Adaptive identity risk scoring enables organizations to keep CIP relevant to current fraud trends by giving fraud managers the ability to customize scoring models. Adaptive scoring lets your team create scoring models that fit your unique set of rules, as well as regulations in your industry. And, as fraud tactics continue to evolve, so can your scoring models.
This method means that your organization can assign risk levels to different fraud indicators relevant to your enterprise. Rather than meeting minimum industry standards and taking a reactionary approach to fraud that occurs, adaptive risk scoring puts organizations on the offensive to prevent fraudsters from being successful in the first place.
Why Is Adaptive Risk Scoring Important?
In addition to ensuring that your organization is in compliance with Know Your Customer (KYC) guidelines and other regulations, adaptive risk scoring provides further benefits to strengthen fraud prevention and other processes.
The “do-it-yourself” approach to risk scoring keeps organizations in control of their fraud prevention platform, leading to the simplification of approval processes and less friction for legitimate customers. Being successful in the fight against fraud depends on having the information at your fingertips to make the best decisions for your business. When working in a customer-not-present environment, you must rely on the power of your fraud prevention platform and use enhanced identity verification techniques to quickly approve customers while making sure that fraud is kept out.
You can learn more about adaptive risk scoring with an online demonstration of IDology’s ExpectID Score product by contacting a representative at (866) 520-1234.