Identity Verification Demystified: Share More, Secure More

Going too far to protect identity data by not sharing valuable signals across organizations has put the financial services industry at increased risk. Reluctance to share critical intelligence across organizations and platforms has pigeon-holed financial institutions into limited views of the consumers and businesses with which they interact. Connecting to data streams from third-party sources provides enriching identity signals that vendors and FIs would otherwise natively lack and vastly enhance decision engines and modeling. For these reasons, the future of effective identity verification and authentication depends on a strategic integration of big data, artificial intelligence tools, and leveraged consortium-based signals. New-account, account takeover, first-party, and third-party transactional fraud will all increase at FIs lacking these essential elements in their identity solutions. 

This report draws on primary research conducted by analysts within Javelin Strategy & Research’s Fraud & Security practice for the 2024 Authentication and Identity-Proofing Vendor Solutions Scorecard. Data from the scorecard demonstrates that not all solutions rely on equally robust data sets, employ reliable AI/ML algorithms compatible with preexisting models, or cultivate and share consortium data across institutions and sectors. To the extent these elements are lacking, FIs are left vulnerable. 

Key questions discussed in this report:

• Why is reliance on shared data signals a necessity for future identity-proofing? 
• What essential elements must effective identity verification and authentication solutions comprise?
• How can identity-proofing vendors help FIs leverage big data, AI, and shared consortium data signals to detect and prevent identity fraud?

Companies Mentioned:

Alloy, BioCatch, Callsign, ComplyAdvantage, Daon, Early Warning Services, FIS, FNZ, GBG PLC, Identiq, IDMission LLC, Intellicheck, Jumio Corp., Kount, an Equifax Company, Lexis Nexis Risk Solutions, LSEG Risk Intelligence (formerly dba GIACT), Mastercard, Mitek Systems, MT4 Tecnologia LTDA, Netki Inc., NeuroID, NICE Actimize, Onfido (May 2023 acquired by Airside), Outseer (RSA spinoff), Persona Identities Inc., Ping Identity, Pipl, Plaid, Prove (formerly dba Payfone), Regula Forensics Inc., SAS, Seon, Socure, TeleSign, Thales, TransUnion, Trulioo, Veridas, Youverify