Reaching Stage 4 in Identity Verification Maturity yields significant ROI

In our newly launched maturity report, The State of Identity Verification in North America, Ekata commissioned a survey of 150 North American online merchants and lenders of varying sizes to evaluate their level of sophistication when it comes to identity verification. Identity verification is defined as the process and tools used by companies to ensure that their consumers are authentic and legitimate by verifying that the identity information associated at the time of the digital transaction aligns with the real identity of that consumer.
With an estimated $71 billion in global card not present fraud expected between 2017-2022, these online businesses face mounting pressure to thwart criminal activity without rejecting good transactions. So, we asked respondents about their current practices, motivations for – and perceived obstacles to – adopting more sophisticated identity verification practices, and the measurable business benefits that accrue for organizations as they become increasingly mature in their approach to identity verification.
For context, the report defines four stages of identity verification maturity:
STAGE 1: Not currently performing identity verification.
STAGE 2: Attempting identity verification, but not doing it consistently.
STAGE 3: Consistently using identity verification, incorporating a larger proportion of available data, and experimenting with data linkages.
STAGE 4: Have embraced holistic identity verification. These organizations are verifying multiple data elements and linking them. They have embraced automation.
It may not be of surprise that the research showed organizations that achieve the highest stage of identity verification maturity, Stage 4, see the greatest benefits, yet only 13% surveyed fell into this stage. The more mature their identity verification, the larger the overall reduction in fraud rate and manual review. A majority of the Stage 4 companies saw 10-25% reductions in their fraud rates. But even more importantly, they see the most significant gains in clearing good transactions and reducing manual reviews. This translates into both a significant cost savings and, most likely, a higher rate of customer satisfaction.
To learn more about the 4 stages of Identity Verification Maturity and which one you fall into, download the full report.

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