Identity theft has been increasing in the financial services industry with the resultant increase in fraud and theft. Banks are increasingly fielding complaints and lawsuits that hold them at least partially liable. The increasing sophistication of fraud syndicates and ingenuity of thieves has led to the development of more robust defences against identity theft.
The traditional defence was a numeric pin code – although these have evolved into more complicated passwords, they still suffer from vulnerability in terms of hacking or coercive methods. Multiple authentication factors are increasingly used to prove identity based on the premise that it is difficult, if not impossible, for unauthorised people to supply more than two factors.
These factors include:
- Knowledge factors –“that which you know”, e.g. PIN, password. Stronger versions include phrasesand authentication questions that are known only to the user
- Possession factors –“that which you have”, e.g. remote tokens, a bank card
- Inherence factors –“that which you are”, e.g. biometric like fingerprints, voice recognition
The combination of these factors lead to an almost impenetrable defenceagainst identity theft. Here are some relevant innovations from the Matchi platform: