HOW BANKS CAN
COMBAT IDENTITY
FRAUD WITH
VERIFICATION
Identity fraud is a major issue that’s costing the UK banking
industry an estimated £1.2 billion, with a new incident of
financial fraud being reported every 15 seconds in 2018.
Tim Bedard, Director, Security Product Marketing, OneSpan,
explores how banks can combat identity fraud by moving
beyond legacy approaches to identity verification.
T
he UK banking
industry is facing
a million-pound
fraud problem,
with 2018 seeing
new incidences
of financial fraud
being reported every 15 seconds.
Identity fraud in particular has hit
record levels in the UK according to
national fraud prevention service Cifas,
largely as a result of the increasing
number of data breaches.
However, although fraud cost the
British banking industry approximately
£1.2 billion in 2018, UK banks and
financial institutions (FIs) continue
to use outdated approaches to
identity verification, which is giving
cybercriminals the upper hand.
The good news is that technology has
evolved to the point where modern
74
identity verification tools are now
available for banks to use in their fight
against identity fraud. So what are they
and what difference will they make?
Identity fraud: A modern-
day problem
Digital banking and payments have
revolutionised the banking experience,
particularly with the rise of mobile and
online banking. However, cybercriminals
are quick to adapt their methods to
new channels and exploit existing
vulnerabilities in devices, illustrated by
the 20% rise in mobile banking fraud
compared to the previous year.
Data breaches are also contributing
to the rise in identity fraud, with a
single breach having the potential to
distribute vast amounts of personally
identifiable information (PII) online – a
gold mine for cybercriminals who can
Tim Bedard, Director, Security Product
Marketing, OneSpan
Given the serious
implications
associated with
identity fraud, banks
must keep pace
with attackers and
adopt more modern
ways to verify
their customers’
identities.
Issue 19
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