Businesses: Verifying new customers is a challenge

Forty-nine percent of businesses face challenges when it comes to verifying the identity of new customers. This makes it one of their most cited challenges, second only to managing a remote workforce, according to “Risk And Resilience,” a PYMNTS and TreviPay collaboration based on a survey of 150 business leaders. whose annual revenues are between $10 million and $1 billion. .

Get the report: Risk and Resilience: A Report on Commercial Fraud and Identity Theft

Sixteen percent of businesses say verifying the identity of new customers is the most important challenge to their operations, and an additional 33% say it’s important, but not the most important.

To help verify the identity of new customers, companies use a variety of tools and methodologies, both automated and manual.

Seventy-three percent of businesses use a common method of identity authentication – payment card verification – as an anti-fraud measure when doing business online.

Other common tools and methods include automated alerting for transaction anomalies (cited by 55%), automated web monitoring (47%), address verification services (47%), document authentication and identity (38%) and automated subscription systems (34%). .

Organizations using proactive and automated anti-fraud methods were the most likely to rate all available anti-fraud methods as equally important to their fraud security.

How organizations perceive their anti-fraud approaches is indicative of how they assess the success of their current methods and the urgency of their need to fight fraud.

At a time when the industry is defined by uncertainty, sustainable growth is imperative for businesses – and fraud has weighed heavily on the viability of many.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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