Quick Overview
In today’s digital landscape, the threat of fraud looms larger than ever. As financial institutions strive to protect their members, a critical vulnerability has emerged: the dark web. This hidden corner of the internet has become a marketplace for stolen personal data, rendering once-reliable security measures like Knowledge-Based Authentication (KBA) dangerously obsolete.
The Cracks in KBA: A Fraudster’s Playground
For years, KBA questions – like “What was your mother’s maiden name?” or “What street did you grow up on?” – were a cornerstone of identity verification. The assumption was that only the legitimate account holder would know these answers. However, this assumption no longer holds true.
Data breaches have exposed billions of personal records, from social security numbers to past addresses and even those seemingly obscure KBA answers. As one community finance leader has highlighted, “My personal information is on the dark web. So, is yours… I have found it costs about 35 bucks, right?” This stark reality means that fraudsters can easily purchase or access the very information designed to protect your members.
When a fraudster has access to this data, they can effortlessly bypass KBA, gaining unauthorized access to accounts, initiating fraudulent transactions, and causing significant financial and reputational damage. As one credit union executive noted, “I’ve had fraud recently and the crook that called in, she knew everything on the account. So asking address, date of birth, social that’s all out there. So you’ve got to come up with a different way to verify.”
The era of “something I know” as a primary security measure is rapidly fading.
Modernizing Identity Verification With Eltropy
At Eltropy, we understand that combating sophisticated fraud requires equally sophisticated solutions. We empower financial institutions to move beyond outdated KBA with a multi-layered approach to identity verification that prioritizes both security and member experience.
- Video Banking: The Ultimate Deterrent and Verifier
Fraudsters thrive on anonymity, and the prospect of a recorded video interaction is often enough to send them seeking easier targets. As our experts explain, “If that is a fraudster, they’re gone, they’re going to go find an easier target because they’re not going to want to jump on a video call.”
Beyond deterrence, video banking allows for robust visual verification. If a fraudster does attempt to engage, your team can conduct real-time ID checks, ensuring the person on screen matches the identity documents. This simple step can dramatically reduce fraud, with some credit unions reporting significant reductions in wire fraud and account opening fraud.
$80,000 Saved - How Humans of APL and Eltropy Video Banking Stopped Fraud in Its Tracks
- Advanced Systemic ID Verification
Eltropy integrates with leading identity verification partners like Plaid to provide systemic, multi-factor authentication. This goes far beyond simple KBA or one-time passcodes (OTPs), which can also be spoofed. Our solutions include:
- Selfie Verification: Members take a live selfie, which is then compared against their ID. This prevents the use of static images or deepfakes.
- Document Scanning: Members upload pictures of government-issued IDs (driver’s licenses, passports), which are then analyzed for authenticity, tampering, and expiration.
- Biometric Checks: For even higher security, solutions like Illuma Labs offer voice biometrics, detecting synthetic speech and flagging suspicious calls in real time.
These checks ensure that “the document that is being uploaded is legit. Right? It’s not tampered, it’s not expired, right? The hallmarks are in the correct place; it looks legit, etc.”
- Real-time Fraud Detection and Workflow Integration
Eltropy’s solutions are designed to integrate seamlessly into your existing workflows, providing real-time alerts and enabling your team to act quickly. For instance, if a high-risk transaction is requested or a contact center agent has a “spidey sense” that something isn’t right, they can trigger an immediate ID verification process via text or video. This proactive approach can prevent losses, as demonstrated by a credit union that stopped an $80,000 fraudulent wire transfer using Eltropy’s ID verification.
The Future of Identity Verification
The dark web is one part of a wider problem: information that once felt private may now be exposed or easy to find. Traditional KBA alone can’t reliably confirm who is on the other end of an interaction.
Eltropy helps financial institutions add verification options such as video checks, document and selfie review, risk assessment and voice security. Combined with staff judgment and the right workflow, these tools can help teams verify identity with greater confidence and protect members and their accounts.
Give your team more than a security question to rely on. Explore Eltropy Fraud Prevention Solutions Now!.
