As identity fraud continues to grow in volume and sophistication, companies should always try to stay one step ahead in the ID verification tactics they use to tackle this issue. Fraud negatively impacts business revenue, brand reputation, time, and resources.
How can companies strengthen identity verification and battle fraud? One way is to implement multiple data sources that can confirm 1) the authenticity of a document and 2) that the license was obtained through an authoritative source. Keep reading to learn more.
Why ID verification is important
Businesses lose around 5% of annual revenue to fraud, which amounts to billions in losses per year. In particular, synthetic identity fraud is projected to increase to over $5 billion in 2024 and accounts for over 80% of all identity fraud in the US.
Companies already collecting driver’s license data via document scan may be checking whether the document has been tampered with. However, because synthetic identities typically contain both real and fraudulent information, they are often able to pass document scan or biometric checks.
Fraudsters may be using utility bills and generative technology, among other avenues, to build up a credible identity before they open accounts that seem legitimate.
Adding another check to verify that the identity actually exists is an effective way to further reduce the risk of fraud.
Authoritative sources: the key to ID verification
Authoritative sources, such as DMVs or other issuing authorities, are critical in the identity verification process. By using these types of official sources, companies can check that the ID document is for a real identity, which drastically reduces the risk of fraud.
Through our ID Match product, Tessera Data® can instantly compare PII (personally identifiable information) on driver’s licenses and government IDs with information directly from the issuing source.
Let’s dig into the details:
- Coverage in all 51 jurisdictions: Our solution provides coverage for every person with a driver’s license and/or government-issued ID. We have access to authoritative source data from all 50 states and Washington, D.C.
- AAMVA partnership: We partner with the American Association of Vehicle Administrators (AAMVA.org) to access trusted and authoritative data sources.
- Complementary solution: Leverage ID Match with existing identity biometric & ID scan solutions for increased confidence in your identity verification process.
- Instant results: Validate data points on driver’s licenses and government IDs against the official issuing source in real time.
See Tessera’s identity verification solution in action
Strengthening identity verification measures on your platform can mitigate financial risk, improve trust and safety for consumers, protect brand reputation, and even increase productivity.
A key part of fraud prevention is utilizing multiple data sources to evaluate signals during an onboarding/identity verification process. Get a demo of our ID Match product to see how our solution can help you look at fraud from every angle.