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Is Bank-verified Digital Identity the Missing Link in Solving Payment Fraud?

In this latest white paper from techUK member OneID®, it points the financial services and payments industry to an effective solution to one of the most pressing challenges in the UK’s digital economy. The paper presents an analytical view of the current payment infrastructure, the safeguards in place, how fraudsters circumvent them, and how strong digital identity verification can close the gates to fraudsters.

Read the white paper here: Is Bank-based Digital Identity the Missing Link in Solving Payment Fraud?

Here's a quick look at the key points the paper raises:

Fraud, a matter of national security

Fraud, alongside computer misuse, constitutes 50% of all crimes. UK Finance reports a substantial £580 million loss to fraudsters in the first half of 2023. In the middle of a cost-of-living crisis, these numbers threaten business continuity, economic stability, and the well-being of UK citizens.

Regulatory response and current challenges

While UK regulators have introduced measures like Strong Customer Authentication (SCA) and Confirmation of Payee (CoP), there are gaps in the identity verification processes that leave room for exploitation by fraudsters, particularly in digital payments.

Bank-based digital identity: the missing link in the payment industry’s response to fraud 

Bank-verified digital identification solutions, like BankID in Norway, have helped reduce fraud to 0.00042% of payment transactions. By verifying account ownership and securing digital payments, digital identity offers a robust defence against fraudulent activities.

Going a step further: Empowering businesses and consumers

By streamlining identity verification processes, bank-verified digital identity enhances security and the user experience. Businesses can deliver seamless, secure transactions, while consumers benefit from improved data accuracy and reduced friction.

About OneID®

OneID® - the UK's fastest, easiest, and safest digital identity service. OneID® eliminates the possibility of synthetic IDs and the friction associated with the process. Using bank-verified information, OneID® provides the most reliable identity services businesses can use to verify 90% of UK individuals.

It is also the only document-free and truly digital identity service provider that creates absolute certainty between a business and an individual in real time. By leveraging bank-verified data, OneID® brings speed, simplicity and compliance to the digital identification process.

Their digital ID services use the most advanced counter-fraud measures to help protect banks, businesses and individuals from online identity fraud. By streamlining existing ID processes, including payments, direct debits, onboarding and more, we help businesses reduce operational costs, increase sales and improve customer engagement. 

As the UK’s only identity service with access to bank-verified information,  around 50 million individuals in the UK can use OneID® to prove their credentials online – instantly, without any app download or account creation. OneID® is government-certified, regulated by the FCA and is a B Corp business. 

Headquartered in the UK, we have brought together the best people in Digital Identity, Payments, Banking, Technology and Government to ensure we make the world a safer place.

Channel website: http://www.techuk.org/

Original article link: https://www.techuk.org/resource/is-bank-verified-digital-identity-the-missing-link-in-solving-payment-fraud.html

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