Know Your Customer Rules – How Much Do You Already Know?

When conducting business online or over the phone, it is a top priority for companies to be able to confirm that a customer is who she or he claims to be. Otherwise, criminals are able to create and/or access accounts, purchase products, or gain control of valuable data. That is why it is so important for businesses to focus on developing robust identity verification programs in order to protect their customers as well as business from fraud.

Many companies have Know Your Customer (KYC) programs to verify the identities of their customers. However, when developing a KYC program, how do you also take into account what is already known about a customer? And, how you can employ that knowledge in the authentication process? Enhancing your KYC program with dynamic knowledge-based authentication (KBA) which utilizes proprietary customer data can improve the verification process by delivering unique, relevant questions to your customers as well as reinforcing customer security.

Enhancing Knowledge-Based Authentication (KBA)

Gone are the days when simple, “shared secrets”, security questions such as “What is your mother’s maiden name?” and “What is your favorite animal?” were enough to keep fraudsters out. As attacks get more sophisticated, the need grows for differing layers of security within an organization’s customer authentication process. Using consumer information unique to a customer’s relationship with a company, businesses can custom generate their own KBA questions and drive a safer customer authentication process.

Companies have a wealth of information on their customers. Yet, the challenge has traditionally been in using this information within an identity verification platform while also maintaining data security and consumer privacy. ExpectID Customer Based Authentication (CBA) from IDology gives organizations a complete end-to-end authentication solution to verify new and existing customers utilizing this valuable customer data. Questions such as “What ATM did you last visit?” and “Which of these items did you recently purchase?” are known to true account-holders, are easier than trying to remember security questions, and are more difficult for fraudsters to crack.

Security and Customer Service Benefits

Enhanced KBA is an immediate upgrade from traditional shared-secret questions that are unfortunately still in use. Since proprietary data is never shared with IDology (all data resides behind a customer’s firewall), ExpectID CBA gives companies the ability to custom write and generate their own questions relevant to their relationship with their customer. As a result, customer satisfaction increases as legitimate users find less friction when accessing their accounts.

This form of authentication provides a more unique and relevant KBA experience and assists with meeting compliance regulations. When combined with IDology’s ExpectID IQ platform, organizations get a robust solution for KBA that allows for accurate and efficient verification of existing customers. So, when it comes to your Know Your Customer (KYC) Rules, make sure to incorporate data that is already known about your customers into the program. To learn more about the ExpectID platform, and to schedule an online demonstration, contact a representative at IDology today at (866) 520-1234.

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