Verified online ID could be one of the factors that helps insurance premiums fall long term. Knowing someone’s digital footprint within seconds could allow insurance brands to price in a more granular, personal way, rather than use a general algorithm. You could also decline high risk persons very quickly – in theory. The potential is huge, allow the privacy issues are serious too – what happens if your Digital ID is cloned or used by rogue actors?
The mood music globally is towards digital ID for everyone, although how such huge databases can be managed securely is another matter, as the Horizon-Fujitsu scandal proves. Maybe digital ID is not only inevitable in terms of polictical ideology, but adds a layer of security for insurance brands too, assuming the pilot ID schemes are voluntary and closely monitored by the FCA?
Signicat, a provider of digital identity solutions in Europe, offers these insights;
Criminals continue to use proven post-pandemic attack typologies:
- ID fraud – criminals impersonate victims by using their personal details to buy goods or apply for accounts, loans, or cards in their name.
- Synthetic ID fraud – criminals blend real and fictitious information to create a synthetic identity to apply for loans, credit cards, and mobile phone contracts. These fake IDs can also be added to accounts or credit cards as a secondary user to build a credit profile.
- Account takeover fraud – criminals gain access to a victim’s account, without their knowledge or permission, to make fraudulent purchases, transfers, or applications, or lock the rightful owner out of the account.
“Fraud is a major concern for companies in regulated sectors that must comply with AML regulations in the countries in which they operate. At Signicat, we bring a multi-faceted approach to fighting fraud: we stop it in different ways and at different moments of the user’s life cycle, such as identity verification through digital identities with risk based security step-ups or AI-powered video identification techniques as well as risk analysis flows through different data sources“, says Pinar Alpay, Chief Product & Marketing Officer at Signicat.
“The concerns we see in our customers are to be compliant and stop fraud at the root but also to use a convenient and seamless technology for their users that allows them to grow their business. Signicat is prepared for every case, from the detection of false identity documents to deepfakes”, she adds.
Signicat powers fraud fightback
Signicat helps businesses prevent fraud, expand cross-border and comply with regulatory requirements. Its digital identity platform incorporates a suite of identity proofing, authentication, fraud detection and signing systems through a single integration.
To examine the potential return on investment (ROI) businesses may realise by deploying its platform, Signicat commissioned Forrester Consulting to conduct a 2023 Total Economic Impact (TEI) study.
Some of the key findings include:
- A 75% reduced fraud costs resulting from a fraud rate reduction: Through different identity proofing methods like digital identities or electronic identity verification it uses and its fraud monitoring capabilities, Signicat showed the capability to reduce the number of fraudulent customers during the onboarding process. It also prevents fraudsters who are impersonating customers from accessing existing customers’ accounts or portals.
- Improved ability to meet anti-money laundering (AML) regulations across countries: Signicat offers the ease of entering new markets in a matter of days, solving the complexity of local compliance and regulations, as its solutions are fully compliant with all KYC and AML regulations required for highly regulated sectors such as companies in the financial sector.
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