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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.

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.

Highlights:

 

  • 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, but new research published by the Aite Group indicates that stronger identity verification requires more diversified signals.
  • Aite Group’s Fraud & AML practice analyzed the results of a data study performed for a leading financial institution in Q1 2019. The study showed a 73% increase in verification rates when diversified signals from Payfone’s network of authoritative identity verifiers was queried vs. using MNO data alone.
  • The study also found that adding MNO data to Payfone’s mix of identity verifiers resulted in a slight improvement (1.9%) in identity verification rates.

 

NEW YORK (June 20, 2019)Payfone, a leading digital identity authentication network, today announced the results of a research report with Aite Group, a global research and advisory firm delivering comprehensive, actionable advice on business, technology and regulatory issues within the financial services industry. The paper analyzed the results of a data study performed for a leading U.S. financial institution in Q1 2019 in order to compare the efficacy of using MNO data for identity verification vs. Payfone’s diversified identity signals. The study also looked at the impact of removing MNO data from the identity verification ecosystem.

 

Aite Group’s analysis examined 29,000 consumer records to conclude that the identity verification rate (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 verification rate of 83.2%. The verification rate for Payfone’s sources, including MNO data, was 85.1%, indicating a 1.9% improvement in account verification rates when direct carrier information is added to the equation.

 

“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.

 

About Payfone

Payfone’s award-winning Trust Platform™ and Trust Score™ bring trust to the digital economy by enabling businesses to instantly verify customers while thwarting fraud and cyberattacks in real-time; all within a privacy-first, zero-knowledge framework. Payfone serves 6 of the top 10 US financial institutions, and leading healthcare, insurance, technology and retail companies. Learn more at payfone.com and linkedin.com/company/payfone.

 

About Aite Group

Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

 

Press Contact:
Yuka Yoneda
yyoneda@payfone.com
212.614.6927

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.

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.

Interested in receiving Did You Know? emails in your inbox? Sign up here.

But what does that even mean?

 

  • If you have a high degree of initial identity vetting during the enrollment phase, it changes the entire customer journey.
  • When a thorough (but quick) identity verification is completed at the sign-up or enrollment stage, enterprises are able to deliver a frictionless customer experience for every subsequent interaction.
  • Which means that annoying customer authentication questions, like ‘how many stop signs?’ or ‘what is the name of your first pet?’, will not be a deterrent to customer engagement when consumers come back to purchase something, inquire about your product, or need information.
  • How does this ‘magic’ happen? It all starts with giving every customer a tokenized Payfone ID that is private, secure and persistent. We will then check against authoritative verifiers of identity and real-time signals.
  • This allows enterprises to disrupt the bad guys’ fraudster journey, and eliminate the painful login processes that prevent sticky relationships.
  • Enterprises can also create a Payfone ID for their existing customers, so they too can enjoy frictionless customer experiences.
  • Getting it right from the beginning during the enrollment phase validates that customers are who they claim to be, and allows you to turn interactions into a delightful and engaging customer journey.

 

To learn how you can get the enrollment phase right for your business, click here.

 
Next week’s Did You Know? topic:
How to reverse the trend of lack of trust in the customer experience.
 

Interested in receiving Did You Know? emails in your inbox? Sign up here.

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

Payfone held our very first ‘Wine & Time” Executive Experience last week in Atlanta. The event, held at City Winery in the popular Ponce City Market complex, was a great success, and was well-attended by Atlanta-area executives interested in learning how time and trust are the new KPIs reshuffling the Fortune 500. The evening was filled with delicious food, lively conversation about creating fast, frictionless and fraud-free experiences, and, of course, free-flowing bottles of excellent wine!

payfone, digital trust, identity authentication, payfone events

The event was held at City Winery, a unique bar and restaurant with an on-site winery.

payfone, digital trust, identity authentication, payfone events

payfone, digital trust, identity authentication, payfone events

The evening began in the “Den” where attendees heard from 2-time TEDx-speaker and Olympic Silver medalist John K. Coyle (‘The Time Guy’) about the science behind how humans perceive time, and how brands can apply that science to vastly improve the customer experience. John drew the crowd in with a vivid story about his Olympic speed skating days, and then touched upon how mere milliseconds can decide the difference between winners and losers – whether you’re competing in sports or in business.

payfone, digital trust, identity authentication, payfone events

Rodger Desai, Payfone’s Founder and CEO, and Kathleen Waid, Payfone Senior Vice President of New Business, gave guests an overview of Payfone’s mission of allowing brands to take back their customer experiences from fraudsters by delivering digital trust through our Trust Platform™ and Trust Score™.

payfone, digital trust, identity authentication, payfone events

payfone, digital trust, identity authentication, payfone events

Afterwards, attendees spread out into the Den landing and had the chance to receive their own personal Trust Scores from Atlanta-based Sales Engineer Caitlyn Livingston to see how the technology works.

payfone, digital trust, identity authentication, payfone events

payfone, digital trust, identity authentication, payfone events

Every attendee went home with a personal gift and a signed copy of John K. Coyle’s book, Design for Strengths.

Thank you to everyone who attended! It was an immense success and now we’re busy planning our next ‘Wine & Time’ event.

If you’re interested in attending or learning more about our Trust Platform, contact us today.

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