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How Healthcare Organizations Can Boost Engagement and Slash OPEX Through Modernized Digital Identity

July 20, 2018
identity verification

Payfone’s digital identity solutions offer healthcare organizations a modernized way of solving common challenges like fraud, low engagement due to missing or inaccurate contact information, cumbersome digital experiences, and high call center OPEX by establishing a new framework for digital identity that relies on dynamic digital signals within a tokenized framework rather than vast stores of static personal data.

The core problem with traditional identity verification solutions is that they rely on a trove of centrally stored personally identifiable information like names, addresses and social-security numbers. This approach is not only inefficient as it forces healthcare organizations to treat members transactionally instead of establishing long-term relationships, but it’s also ineffective at protecting both healthcare organizations and members as a result of numerous data breaches that have given fraudsters easy access to personal information like SSN, date-of-birth, etc. Further, relying on static personal data creates the need for additional honeypots of personal data for ongoing authentication needs. These honeypots are then breached via phishing attacks against members. It’s a vicious cycle.

The core problem with traditional identity verification solutions is that they rely on a trove of centrally stored personally identifiable information like names, addresses and social-security numbers.

Payfone has a different approach. By using next-generation passive and continuous authentication technologies, we deliver a framework in which full lifecycle member experience, omni-channel cyber-security and data privacy all co-exist. Our suite of products is powered without the need to store personally identifiable information and instead uses network tokens, algorithmic behavioral scoring and encryption within a tokenized trust framework.

How It Works

First, Payfone creates a verified token for each member using the mobile number a member already has on file with mobile operators. Once this token is created, any personal information already associated with their mobile number is thrown away and only the token is stored. That means member data never is shared. Now that this verified token exists, it acts as an E-Zpass for identity. Importantly, the token helps eliminate the need for members and healthcare organizations to constantly pass PII for every transaction. That means not only less fraud, but also less friction and more trust in interactions between healthcare organizations and members.

Payfone’s underlying technology leverages 128-bit mobile SIM encryption, which is the same technology that allows you to make a call or send a text on your mobile phone immediately instead of having to “log in” using a username and password first. Though the authentication takes place through the mobile phone, all digital channels (call center, PC /tablet web, chat, kiosk, and SMS) are supported. With Payfone’s solutions, a digital identity is not just tied to a phone number which can spoofed, hacked, or stolen. Instead we build a token for each member that protects their privacy as well as their identity.

Payfone solutions address the following pain points:

  • Identity fraud (SIM swap fraud, porting fraud, account takeover attacks, ANI-spoofing)
  • Low conversion/member dissatisfaction due to cumbersome identity verification processes (Examples: Clunky SMS one-time passcodes (SMS OTPs), time-consuming knowledge-based authentication (KBA), long forms with multiple fields of information to fill). It’s important to note that both SMS OTPs and KBA are not only annoying for members but also often ineffective at preventing fraud because SMS OTPs can be easily intercepted by fraudsters and answers to KBA questions are now readily available on the black market
  • High call center operating expenses due to time-consuming KBA
  • Inaccurate or incomplete customer contact information
  • Data privacy: No need to rely on personally identifiable information (PII) to authenticate identities


Why legacy solutions are no longer viable

Knowledge-based authentication is not only time-consuming and cumbersome for users, but has also been proven to be ineffective in light of the numerous data breaches that have taken place in past years. Fraudsters can easily obtain the answers to KBA questions on the black market. KBA also relies on stores of static PII. Payfone disrupts this framework by eliminating the need to draw upon static PII. Instead, we use tokenized identity and dynamic digital signals to authenticate and persist identity.

SMS OTPs are not only clunky and annoying for users, they can also be easily intercepted by fraudsters. Payfone replaces SMS OTPs with passive mobile authentication that cannot be intercepted because it requires no human involvement.

Results – ROI

While ROI results vary from client to client, the specific ROI scenarios we have calculated for top plans show significant OPEX savings. For one leading East Coast plan, we found that the first 30 seconds of each inbound call was being spent on security related questions. This plan’s monthly call volumes total over 1 million calls per month with the average call time being 2 minutes and 40 seconds. With Payfone’s solutions enabled, the plan’s Call Ops expenses will be reduced by 18% per call.

This plan also mailed out an average of 6 million pieces of information per year with a return-to-sender rate of 28% on those mailings. Verifying each member’s current address and maintaining ongoing changes to member addresses will save this plan over $450,000 per year in mailing and handling expenses alone.

Contact us today to learn how Payfone can cut your call center operating expenses and boost your engagement with members.

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