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Consumers are increasingly digital in everything they do. In fact, more than 60% of consumers of all ages log into their financial accounts at least once per week, with younger consumers showing particularly strong use and engagement with the mobile channel (Figure 1). As a result, banking and commerce transactions are rapidly migrating into the online and mobile channels.

aite group, anti fraud solutions, customer experience, payfone, julie conroy

Considering this overwhelming trend towards digital, it’s not surprising that improving the customer experience is the #1 consideration for the majority of merchants and FIs as they are contemplating new investments in fraud mitigation and authentication. According to a report from global research firm Aite Group, 86% of merchants surveyed and 88% of FI respondents indicated that improving the CX is a key factor driving their investments in anti-fraud technology (Figure 2 and Figure 3).

aite group, anti fraud solutions, customer experience, payfone, julie conroy

aite group, anti fraud solutions, customer experience, payfone, julie conroy

The same report highlights Payfone’s unique ability to enhance customer experiences by verifying identity securely and little or no friction on the customer’s end. The paper also shows how Payfone’s diversified signals deliver 73% higher identity verification rates.

Is improving your CX and giving your customers a fast, frictionless and fraud-free experience at the top of your priority list? Contact us today to learn how Payfone can mitigate fraud while also delivering the best possible CX.

It is now possible. Payfone assigns a real time personalized Trust Score to every consumer.

Listen to (or read about) a just released podcast with Tearsheet and Rodger Desai, CEO of Payfone to hear how using telecom and other signals, Payfone yields up to 73% higher verification rates, which turn into high consumer pass rates and enrollments.

Tearsheet’s Zack Miller breaks it down for you in a new podcast. Rodger discusses some of the top challenges businesses are facing today and how they are solving them with advanced digital identity authentication. He also shares insights on how to measure digital identity ROI, and a new report published by Aite Group about why diversified signals are key to higher identity verification rates.

Listen to the new Tearsheet podcast here.

Mobile Network Operator (MNO) data has long been thought of by many in the identity authentication industry as a vital source of signals for enterprises to prevent fraud and create better customer experiences. New research published by global research and advisory firm Aite Group indicates that stronger identity verification requires diversified signals.

The analysis was based on a data study completed in Q1 2019 for a leading U.S. financial institution to understand Payfone’s ability to detect fraud and improve the customer experience both with and without access to MNO data. From most businesses’ perspective, the ability to provide high verification rates is often of greater value than fraud detection, given the benefits of reduced customer friction and lower operational expense (with fewer customers having to engage with the contact center or manual review teams), which drive customer satisfaction and higher Net Promoter Scores.

The results of Aite’s report are a compelling validation of Payfone’s value proposition. The verify rate, which consists of the proportion of records in which the name and address are successfully matched with the phone number, was 64.2% using MNO data alone. When Payfone’s full network of authoritative verification partners was used, excluding MNO data, this produced a verify rate of 83.2%. The verify rate for Payfone’s collective sources, including MNO information, was 85.1%, which indicates there is only a slight improvement (1.9%) in account verification rates when direct carrier information is added to the equation.

payfone, identity verification, aite group, identity authentication, digital trust

Even more compelling, when the verify rates are extrapolated to reflect the total line type distribution in the U.S., the verify rate improvement across all line types increases by 73%. This improvement makes intuitive sense, given the broader population of verification partners that Payfone has access to, versus the sample data, which was heavily skewed to mobile.

“The goal of the study was to understand the solution’s ability to provide accurate identity verification while increasing fraud detection,” said Julie Conroy, Research Director for Aite Group’s Fraud & AML practice. “From most businesses’ perspective, the ability to provide high verification rates is often of greater value than fraud detection, given the benefits of reduced customer friction and lower operational expense (with fewer customers having to engage with the contact center or manual review teams), which drive customer satisfaction and higher Net Promoter Scores. The results of this analysis are a compelling validation of Payfone’s value proposition to assess the risk of the phone and its owner, providing FIs, merchants, and other firms with reliance on digital and/or contact center channels with a unique view into the risk associated with their customers, and an ability to remove unnecessary points of friction.”

To download the full report, click here.

Educate yourself with more Did You Know? insights here.

85% of consumers have the necessary depth and consistency for businesses to determine the authenticity of their identities, according to McKinsey.

So why is there still so much fraud and so many annoying customer experiences that slow us down and prevent us from transacting?

The main culprit is that most companies only have the ability to identify up to 40% of the good guys. Payfone’s identity authentication provides enterprises with the ability to “greenlight” or “pass” close to 85% of customers without friction or step-up authentication processes, while stopping the <5% of fraudsters. We do this through our Trust Score™ and persistent, tokenized ID, which pull together and synthesize identity signals from a diverse network of authoritative identity verifiers in a private and secure manner. This gives our clients a more complete snapshot of customer identities and improved pass rates.

The research also highlights the importance of deep and consistent identity information when it comes to detecting synthetic identities:

“Rather than using a stolen credit card or identity (ID), many fraudsters now use fictitious, synthetic IDs to draw credit. Indeed, by our estimates, synthetic ID fraud is the fastest-growing type of financial crime in the United States, accounting for 10 to 15 percent of charge-offs in a typical unsecured lending portfolio. Instances of synthetic ID fraud have also recently been reported in other geographies. More worrying still, much bigger losses are building up behind these IDs like hidden time bombs.”

The report goes on to describe the other benefits of determining identity authenticity:

“If armed with similar scoring systems, banks could ascertain whether an applicant’s profile looked real. They could then instantly extend credit, perhaps limited, to those applicants with high depth and consistency scores. They could even offer higher initial credit limits than would normally be the case for first loans, since low-risk applicants could be distinguished from high-risk ones.”

Click here to contact us about how our Trust Score can help your company achieve higher pass rates and greenlight more customers today.

Webinar highlights new research study that shows Payfone signals are superior

It’s a question that’s top-of-mind for many enterprises — what is the impact of not having access to MNO information to authenticate interactions? What type of signals are most impactful to get the highest coverage and most inclusive identity authentication?

Join Julie Conroy, Research Director for Aite Group’s Fraud & AML practice, for a webinar that delves into the results of a data study performed for a leading U.S. financial services company. Learn about the differences between MNO data and other signals, and which deliver the highest verification rates. This analysis also breaks down the impact of AT&T removing its data from the eco-system.

WEBINAR: Payfone Signals Prove Superior to MNO Data Alone
Date: June 19, 2019
Time: 1-2PM ET
Presenter: Julie Conroy, research director for Aite Group’s Fraud & AML practice

Register for the webinar here.

Consumers love the convenience of digital, but businesses do not make it easy. Sadly, that’s because businesses cannot tell the difference between their customers and fraudsters. There is a podcast now available that you should seriously consider listening to.

Cameron D’Ambrosi from One World Identity interviews Rodger Desai, Founder and CEO of Payfone, the leader in digital identity authentication. Rodger’s vision has built an identity authentication business that consistently outperforms the competition in what really matters – pass rates and identifying the fraudsters. Find out how to increase pass rates (translation – greenlight more consumers and improve enrollments) and increase approval rates, customer satisfaction and CX without those annoying questions such as how many stop signs are in this picture.

This may be one of the best podcasts in years dealing specifically with the issues facing CEOs, CMOs, Chief Digital Officers, Chief Risk Officers, CISOs and anyone who is trying to figure out how to juggle convenience, security, and privacy.

Listen to the new podcast here.

It’s no secret that frictionless and trusted digital experiences are driving the reshuffling of the Fortune 500. In the face of intensifying competition to build the next generation of UX, instant gratification built on uninterrupted online experiences will have a dramatic impact on any type of service adoption, and will drive dramatic growth in sales across nearly all industries, spanning from financial services to healthcare to retail to insurance to high-tech.

But how can these new make-or-break standards be quantified? And how can brands see if they measure up?

3 Key KPIs to Measure Digital Trust

  • Pass Rate: Pass rate is the percentage of your customers that can be greenlighted or ‘passed’ during a digital interaction (ex: login, signup, call center call) without introducing friction via step-up authentication. Enterprises typically hover around 40% pass rate. Passive authentication technology such as Payfone’s can bring this metric to >90%.
  • Latency/Interaction Duration: Latency is the length of time it takes to verify a customer’s identity and to allow them to complete an interaction. Traditional identity authentication processes such as passwords, SMS OTP and security questions typically add unnecessary lag to interactions, causing customers to abandon. Passive authentication can bring latency down to just milliseconds. To put the importance of speed into perspective, Google research found that 40% of consumers will leave a webpage that takes longer than 3 seconds to load.
  • Customer Satisfaction: A measure of how happy your customers are and how willing they would be to return or to recommend your brand to others. Typically quantified as NPS or CSAT scores. Pass rate and latency have a direct effect on this metric. Citing the same Google study as above, 79% of shoppers who are dissatisfied with a website are less likely to purchase from the same site again.

Taking these three KPIs into consideration, how does your company score when it comes to Digital Trust?

To learn how you can improve these KPIs for your business, contact us.

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Did you KNOW…

SIM swap fraud is one of the fastest-growing and most devastating fraud vectors plaguing companies and consumers today. From cryptocurrency exchanges to social media networks, all digital service providers that require users to log in are at risk of making headlines for falling victim to these increasingly common attacks if they do not have advanced preventative technology in place.




First, scammers trick victims into divulging personal information about themselves and then socially engineer customer service representatives in order to take over a victim’s phone number by having them transfer the number to a SIM card in their possession. Once they’ve done this successfully, the fraudster has full control over the unsuspecting victim’s phone number, allowing them full access to their accounts. 

While victims are at risk of having their cryptocurrency accounts drained or having their social media handles taken hostage, the harm to the service providers who failed to protect their users against these kinds of attacks ranges from major reputational damage to liability for lost funds to the risk of losing users to more secure competitors.




Many proactive service providers are taking it upon themselves to secure their businesses with preventative technology, like Payfone’s Trust Score, to protect their customers against SIM swap fraud.

Payfone’s patented Trust Score provides a real-time check that allows service providers to see, at the time of a transaction, if a SIM swap has taken place. Here is a real-life example of how the Trust Score is being used today by a leading cryptocurrency exchange:

1) Fraudster steals cryptocurrency exchange username/password of victim through email phishing or similar method.
2) Fraudster takes over victim’s phone number by social engineering a customer service representative.
3) Typically at this point, the fraudster would then be able to log into the cryptocurrency exchange with the stolen credentials, and since they would have taken over the phone number as well, they would be able to receive any 2FA SMS one-time passcodes right to their own phone. However, with Payfone enabled, the cryptocurrency exchange would be able to call the Payfone Trust Score before sending an SMS OTP to see if a SIM swap has occurred on that account.
4) If a SIM swap has occurred, the cryptocurrency exchange routes the user to further inspection before granting them access to the account.
5) In almost all cases where accounts were locked due to insight from the Payfone Trust Score, victims confirmed that their accounts had, in fact, been taken over. Because accounts were locked before any damage could be done, the cryptocurrency exchange was able to safeguard the victims’ cryptocoins.

Note: There were some cases where accounts were locked despite no actual fraud having taken place. This was due to the fact that not all SIM swaps are nefarious. SIM swaps often occur for legitimate reasons–perhaps you dropped your phone in the toilet and wanted to activate an old phone you had in a drawer. However, all SIM swaps should be subject to additional scrutiny as a safety measure.


The overall result was that the cryptocurrency exchange reported zero SIM swap attacks since implementing Payfone’s Trust Score.


“We’re experts in mobile identity. We predicted that as chip cards rolled out in the U.S., fraudsters would attack two-factor solutions that secure banking, fintech and bitcoin services,” said Rodger Desai, Chief Executive Officer, Payfone. “Payfone’s patented Trust Score thwarts these types of attacks before they can do harm by detecting suspicious SIM swaps as soon as they occur.”

The Trust Score has an additional benefit of creating a more seamless experience for legitimate users. One of the main complaints that consumers have about accessing online services is that proving their identities through passwords, knowledge-based authentication and SMS one-time passcodes is cumbersome and time-consuming. Payfone overcomes this tradeoff by using advanced analytics to make logging into online accounts as easy for good users and impossible for scammers.

“Consumers expect digital services to be effortless and secure. Yet security can often be cumbersome,” said David Birch, Global Ambassador, Consult Hyperion. “With new, cutting edge attacks such as SIM swaps, businesses need more and better security, which could mean more friction and therefore fewer customers. Payfone’s technologies deliver the security without the friction.”


Interested in learning how Payfone can stop SIM swap fraudsters from damaging your company? Contact us here to set up a free consultation.


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Did you KNOW…

In addition to battling fraud and delivering better user experiences, there is one area that is becoming mission-critical to every organization: privacy.

  • Results of an online survey conducted by IBM revealed that for 78% of US respondents, a company’s ability to keep their data private is extremely important: only 20% percent completely trust organizations they interact with to maintain the privacy of their data. Furthermore, 60% are more concerned about cybersecurity than a potential war.
  • Improper use or inadequate protection of consumers’ personally identifiable information (PII) is not only extremely damaging to the reputation of any business but can result in significant financial losses. The 2018 Cost of Data Breach Study published by IBM found that the average total cost of a data breach rose by 6.4% since 2017 to $3.86 million. The latest reported average cost is $148 per lost or stolen record. 
  • One of the most effective ways to eliminate the risk of re-identifying personal data in the event of a breach is to employ modern identity authentication solutions that use anonymous tokens and zero-knowledge architecture (a privacy protocol where only yes or no responses are passed as opposed to personal information.) 
  • The consumer benefit of zero-knowledge is that it minimizes the need to pass personal information in order to verify identity for security purposes. That means a more secure and convenient digital customer experience which is also more private, and meets the requirements of privacy based on consumer choice and controls in addition to thwarting fraud, ease-of-use, and compliance regulations. For Payfone, ‘Privacy above all else’ and is a core value and differentiator that is included in our Bill of Trust.

Are your customer identities adequately protected using tokenization and zero-knowledge protocols? To learn more, contact us to speak with an identity tokenization expert today.

Also on the topic of privacy, we recently hosted a Cybersecurity After Hours event at the IAPP Global Privacy Summit in Washington, DC. See a recap of the event here.

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Did you KNOW?

  • The fear of identity fraud creates a Trust Gap between your best customers and your brand.
  • These fears can drive enterprises to build friction into the customer experience, driving higher OPEX, lower customer satisfaction, depressed conversions and lower LTV.
  • It is time to reverse this trend. It is time for Trust.
  • How? The trade-off between security and customer experiences is no longer necessary. Enterprises can achieve higher pass rates to greenlight more customers without step-up authentication.
  • Results we have achieved for enterprises are >80% pass rates (compared to 40% before Payfone) with higher approval rates. Costs to authenticate have dropped from $20/year/customer to $1.00/year/customer.
  • Payfone leverages signals from authoritative verifiers to prove definitive identity and thwart account takeover and synthetic identities.

How can you benefit from this?

If your company is looking for higher conversions, higher engagement, higher margins, and customer loyalty, contact us to discuss a proof-of-concept pass rate study.

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