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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.

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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.

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.

 

HOW SIM SWAP FRAUD WORKS

 

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.

 

WHAT COMPANIES CAN DO TO PROTECT THEMSELVES AND THEIR CUSTOMERS

 

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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Why do fraudsters love it when companies have a siloed approach to identity authentication?

 

PYMNTS explored this question in an article this week that focused on how enterprises can thwart fraud and improve the customer experience by breaking down organizational silos, or the walls between departments that become obstacles to sharing knowledge or accomplishing goals. The post, which quoted David Barnhardt, executive vice president of product at GIACT, touched upon several points that we think are worth summarizing for anyone interested in optimizing their company’s identity authentication and digital trust framework and not surrendering the customer experience to fraudsters:

 

  • Barnhardt explains that approaching the job of identity authentication and fraud prevention from separate departments rather than as a whole company all too often makes things easier for criminals who can use the lack of communication between departments to their advantage. “Look at the enrollment group, tasked with protecting the front door,” he explains. “Then they hand off responsibility to another group to manage the ongoing customer relationship.”
  • Just as the task of protecting customers against fraud should be a holistic and continuous effort, we need to shift our view of identity from something that is static (social security numbers, physical addresses, and knowledge-based security questions) to ongoing and dynamic. This can be accomplished by implementing next-generation tools such as continuous and persistent identity through anonymized ID tokens and a zero-knowledge architecture that can combat fraud more effectively by giving real-time insights into whether a person really is who they say they are when completing a digital transaction.
  • This concept of a holistic view also highlights the need to bolster identity authentication with multiple verifiers of identity rather than just one or a few sources. Fraudsters exploit systems with limited identity verifiers because they are much easier to infiltrate or trick. Going back to the need for persistent identity, some identity verifiers will also have outdated information that could make it easy for scammers to break in, whereas having a number of backup identity verifiers with up-to-date information would decrease the chances of that happening.

 

In the grand scheme of things, all of these considerations will lead to higher customer satisfaction and engagement by offering customers a secure, seamless and end-to-end experience rather than just one-and-done transactions.

So how do your identity authentication processes and experiences stack up? Do they tick these boxes?

☐ Persistent: Do they create a unique and persistent identity token for each customer that allows for continuous identification across business units and channels?
☐ Private: Do they protect your customers’ data privacy by replacing their personal information with an anonymous encrypted token?
☐ Passive: Do they allow for a fast, frictionless and fraud-free customer experience where the customer does not need to take any action (such as typing in an SMS passcode or answering knowledge-based security questions)?
☐ Pervasive: Do they start with your marketing team and touch every functional team in your organization?

For the full article, visit PYMNTS

The two digital identity leaders are combining forces to make the login experience easier and more secure for consumers in Spain

 

BARCELONA (February 14, 2019) – Payfone, the world’s leading digital identity authentication provider, and the GSMA, a trade body representing mobile network operators worldwide, announced today a new partnership to bring fast, frictionless and fraud-free login experiences to companies and their consumers in Spain. Payfone and the GSMA’s Mobile Connect authentication technology fulfill the need for enterprises in Spain to engage more effectively with their customers. Payfone’s award-winning Trust Platform and Trust Score™ replace cumbersome and hackable identity verification processes such as passwords, knowledge-based security questions and SMS one-time passcodes with instant, invisible, and zero-knowledge digital authentication. The deal marks another major milestone for Payfone as it continues its expansion into 35 global markets.

 

The key ingredient to enabling the best possible digital experiences is eliminating the real-time Trust Gap, the difference between the >95% of consumers who can be green-lighted through a VIP customer experience and the <5% of consumers who require further authentication to confirm that they are who they claim to be. Payfone eliminates this Trust Gap and creates a VIP express lane experience for trustworthy logins through our patented Trust Platform and Trust Score. The Trust Score answers the question ‘Is this customer who they claim to be?’

 

“Companies around the globe realize that there is no longer a need to trade off great digital experiences for fraud prevention,said Rodger Desai, Chief Executive Officer of Payfone. “Winning businesses will be differentiated by delivering experiences that not only engage customers and drive long-term loyalty, but save on OpEx by eliminating unnecessary intervention processes.” Desai continued,”We are thrilled to partner with the GSMA and Mobile Connect to bring our advanced Trust capabilities to Spanish enterprises, who can leverage them to give their customers a safer and more convenient way to log in while competing more effectively.”

 

“With Mobile Connect, the mobile industry is fulfilling an important role in the digital identity space, giving users control over their own data and enabling consumers, businesses, and governments alike to interact and access online services in a convenient, private and trusted environment,” said Alex Sinclair, Chief Technology Officer of the GSMA.

 

Payfone and Mobile Connect’s secure, frictionless authentication technology will be available to Spanish enterprises in mid-February 2019.

 

Request a meeting to learn how you can boost customer satisfaction and engagement with Payfone’s Trust Platform.

 

About Payfone
Payfone is the world’s leading digital identity authentication network. Our award-winning next-generation Trust Platform validates identities and enables enterprises to deliver fast, frictionless, and fraud-free customer experiences to over 90% of their customers. Payfone closes the Trust Gap and issues a real-time proprietary Trust Score for 6 of the top 10 financial institutions, and leading healthcare, insurance, technology and retail companies. Learn more at payfone.com and linkedin.com/company/payfone.

 

Press Contact:
Yuka Yoneda
yyoneda@payfone.com
212.614.6927

Introducing the Trust Platform, a meaningful differentiator for brands

NEW YORK (January 24, 2019) – Payfone, the world’s leading digital identity authentication network, today announced the launch of the Trust Platform, a first-of-its-kind digital authentication platform. The Trust Platform enables enterprises to increase customer satisfaction with faster, frictionless and fraud-free customer experiences across all channels.

Payfone developed the Trust Platform to address a major challenge for leading financial, healthcare, technology, retail and insurance companies. Currently, a ‘trust gap’, a void in real-time identity information, forces businesses to treat all of their customers with increased suspicion and friction.

The Trust Platform enables forward-looking enterprises to finally overcome the tradeoff between security and user experience by leveraging Payfone’s patented, deterministic technology. Key elements which efficiently close the ‘trust gap’ include a tokenized Payfone ID, an enterprise-specific Fonebook, and the Payfone Trust Score, a real-time number which quantifies the level of confidence in a consumer’s identity. The Trust Score allows brands to deliver a VIP express lane experience to over 90% of their customer base by confidently answering the critical question, “Is this customer who they claim to be?”

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To learn how to differentiate your brand and deliver a streamlined customer experience with Payfone’s Trust Platform, click here.

“We believe that Trust is the new KPI which will reshuffle the Fortune 500,” said Rodger Desai, Founder and CEO of Payfone. “Companies who figure out how to trust more people online and transact with them quickly and conveniently are going to grow more rapidly than those who don’t. That’s what we deliver through our Trust Platform and award-winning Trust Score.”

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Desai commented that “the bottom line is that the Payfone Trust Platform facilitates commerce by making it easier for consumers to do business with brands, and easier for enterprises to provide an optimal user experience to the vast majority of their customers.”

Request a meeting to learn how you can boost customer satisfaction and engagement with Payfone’s Trust Platform.

About Payfone
Payfone is the world’s leading digital identity authentication network. Our award-winning next-generation Trust Platform validates identities and enables enterprises to deliver fast, frictionless, and fraud-free customer experiences to over 90% of their customers. Payfone closes the ‘trust gap’ and issues a real-time proprietary Trust Score for 6 of the top 10 financial institutions, and leading healthcare, insurance, technology and retail companies. Learn more at payfone.com and linkedin.com/company/payfone.

Press Contact:
Yuka Yoneda
yyoneda@payfone.com
212.614.6927

Payfone Set to Extend Award-Winning Anti-SIM Swap Fraud Technology to 35 Additional Global Markets in 2019

 

The expansion will allow companies in 35 global markets, including Australia, Austria, Canada, Chile, Colombia, Brazil, France, Ireland, Italy, the Netherlands, Nigeria, Poland, Singapore, South Africa, Spain, Switzerland, and the UK, to safeguard and better serve their customers using Payfone’s patented technology

NEW YORK (November 28, 2018) – Digital identity authentication leader Payfone announced today that it will be extending its award-winning cybersecurity technology to 35 additional global markets in 2019. The patented technology has successfully enabled major North American financial services and cryptocurrency companies to thwart SIM swap and porting fraud by alerting them of suspicious activity before fraudsters can take damaging action, and will soon be available to international enterprises seeking to achieve similar results.

“SIM swap fraud continues to make headlines around the world as a growing threat that is draining consumer bank and cryptocurrency accounts,” said Rodger Desai, Chief Executive Officer of Payfone. “Fortune 500 clients who have used our technology to dramatically reduce or completely eliminate SIM swap fraud and other account takeover attacks in domestic markets have communicated their need to extend this capability across their global portfolios. We listened very closely to those requests and are pleased to announce that starting in Q1 2019, we will be able to meet that demand, allowing our clients to protect their customers across the globe.”

 

The full list of global markets where Payfone’s technology will be available includes Australia, Austria, Canada, Chile, Brazil, Colombia, France, Ireland, Italy, the Netherlands, Nigeria, Poland, Singapore, South Africa, Spain, Switzerland, and the UK, which will come online in Q1, and Belgium, the Czech Republic, Denmark, Finland, Hong Kong, Hungary, Israel, Japan, Malaysia, New Zealand, Portugal, Romania, the Russian Federation, Sweden, Thailand, Turkey, and the United Arab Emirates, which will roll out over the remainder of 2019.

Desai made the announcement earlier this month at the 2018 SINET Security Innovation Network Showcase in Washington, D.C. as he accepted the 2018 SINET Cybersecurity Innovator Award on Payfone’s behalf. In September, Payfone was selected from a pool of 123 global applicants as a winner of the prestigious cybersecurity award. Administered by SINET, the award honors the 16 most innovative and compelling cybersecurity companies in the world.

 

About Payfone

Payfone is the leading digital identity authentication provider for the connected world. The world’s largest banks, insurers, brokerages and technology companies trust Payfone to accelerate revenue by thwarting digital identity theft with real-time, passive identity authentication and predictive identity confidence through our proprietary Trust Score. Our solutions enable consumers and businesses to transact with trust. Learn more at payfone.com and www.linkedin.com/company/payfone.

 

Press Contact:
Yuka Yoneda
yyoneda@payfone.com
212.614.6927

CTIA, the wireless industry association, today announced that Michelle Wheeler, Payfone Vice President of Market Development, will join CTIA’s Board of Directors effective January.

 

Payfone is a valued CTIA member and a leading cybersecurity platform. Payfone’s focus on targeting digital identity theft with innovative identity authentication network solutions has made it a trusted brand across multiple industries.

 

“I’m excited to welcome Michelle to the CTIA Board,” said CTIA President and CEO Meredith Attwell Baker. “Payfone is a leader in the digital cybersecurity and authentication space. We look forward to working with Michelle on ways to protect businesses and consumers in the mobile ecosystem as next-generation technologies come to market.”

 

“I am honored and excited to join CTIA’s Board of Directors,” said Wheeler. “I look forward to serving the organization and advocating for the protection, privacy and convenience of American wireless users through advanced identity authentication technologies like Payfone’s.”

 

With more than 25 years of experience in the communications industry, Michelle’s career has focused on enabling operators around the world to leverage data and analytics to solve business problems. She is a recognized expert in her field with deep experience in operational credit and fraud strategies.

 

The full CTIA Board of Directors is available here.

 

About CTIA
CTIA® (www.ctia.org) represents the U.S. wireless communications industry and the companies throughout the mobile ecosystem that enable Americans to lead a 21st century connected life. The association’s members include wireless carriers, device manufacturers, suppliers as well as apps and content companies. CTIA vigorously advocates at all levels of government for policies that foster continued wireless innovation and investment. The association also coordinates the industry’s voluntary best practices, hosts educational events that promote the wireless industry and co-produces the industry’s leading wireless tradeshow. CTIA was founded in 1984 and is based in Washington, D.C.

 

About Payfone
Payfone is the world’s leading digital identity authentication network. Our award-winning next-generation Trust Platform validates identities and enables enterprises to deliver fast, frictionless, and fraud-free customer experiences to over 90% of their customers. Payfone closes the Trust Gap and issues a real-time proprietary Trust Score for 6 of the top 10 financial institutions, and leading healthcare, insurance, technology and retail companies. Learn more at payfone.com and linkedin.com/company/payfone.

 

Media Contacts:

Jason Johnson
CTIA
jjohnson@ctia.org

Yuka Yoneda
Payfone
yyoneda@payfone.com