# Why an orchestrated digital identity strategy is vital for financial organisations in fighting fraud Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-26 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Britain: Bank Scam Capital of the World Meta Description: Discover how document-based identity verification can protect your business from fraud by ensuring users are who they say they are. Learn more now. URL: https://financedigest.com/why-an-orchestrated-digital-identity-strategy-is-vital-for-financial-organisations-in-fighting-fraudhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/confident-business-people-discussing-financial-document-at-meeting-sbi-300723397-1-1736837520615-compressed.jpg) _By **Bala Kumar,** Chief Product Officer, Jumio_ New reports call Britain[the bank scam capital of the world](https://www.reuters.com/world/uk/welcome-britain-bank-scam-capital-world-2021-10-14/) with enormous amounts of money being laundered every year. In fact, a British record of £754 million was stolen in the first six months of this year, an increase of 30% from the same period in 2020. This represents a per capita fraud rate of three times that of the U.S. in 2020. The situation in the UK is so worrying that The Royal United Services Institute (RUSI) has now declared [identity fraud](https://www.financedigest.com/british-start-up-reveals-the-secret-to-solving-the-problem-of-identity-fraud.html "British start up reveals the secret to solving the problem of identity fraud"), a key component of money laundering, a national security threat. With huge amounts of [data available on the dark web](https://www.financedigest.com/investing-in-the-future-with-alternative-web-data.html "Investing in the future with alternative web data") due to how much of our lives is now recorded online, this threat is only growing too. The UK’s internet use [doubled in 2020 due to the pandemic with increased use of online banking](https://www.financedigest.com/bank-of-englands-mann-doubles-down-on-backing-for-rate-hikes.html "Bank of England’s Mann doubles down on backing for rate hikes"), healthcare apps, gaming websites and streaming platforms. In order to reduce the risk, companies must [ensure that an online user is who they say](https://www.financedigest.com/42-of-retailers-say-payment-over-time-solutions-are-very-important-to-ensuring-future-digital-innovation.html "42% of retailers say payment-over-time solutions are ‘very important’ to ensuring future digital innovation") they are. This is true for all businesses, but especially true for [organisations dealing with high-risk transactions and data](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA"), such as financial institutions. With the news that police are only charging[one fraudster in 1,000](https://www.thetimes.co.uk/article/fraud-victims-failed-as-police-charge-one-criminal-in-1-000-8tv8vdrfn) and new technology making fraud even more targeted, prevention is undeniably more effective than the cure when it comes to fighting fraud. And, when it comes to [online fraud](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For"), traditional methods of identification are no longer good enough. Instead, organisations must put in place a holistic and orchestrated [way of mapping customer](https://www.financedigest.com/online-reputation-and-customer-centricity-will-lead-the-way-for-retail-banking-in-this-new-era-of-approachability.html "ONLINE REPUTATION AND CUSTOMER CENTRICITY WILL LEAD THE WAY FOR RETAIL BANKING  IN THIS NEW ERA OF APPROACHABILITY:") identities. **Prioritising trust** Essential to achieving this is investment in [technologies that use document-based identity](https://www.financedigest.com/top-5-trends-in-decentralised-self-sovereign-identity-ssi-and-privacy-preserving-technology-in-web-3-0.html "Top 5 trends in Decentralised Self-Sovereign Identity (SSI) and Privacy-Preserving Technology in Web 3.0 ") verification to check users are who they say they are. All that is required is the user upload a picture of their government-issued ID (e.g., driver’s license) and a corroborating selfie, from which a biometric template is created. The selfie is compared to the photo on the ID to reliably establish the user’s identity. This is a far better approach than traditional methods of data-based [identity verification such as security](https://www.financedigest.com/the-push-and-pull-of-identity-security-adoption-in-the-financial-services-industry.html "The push and pull of identity security adoption in the financial services industry") questions involving your mother’s maiden name or the name of your childhood pet. These types of methods are fundamentally less secure as a fraudster could easily obtain the answers to these questions on [social media](https://www.financedigest.com/why-no-event-should-be-planned-without-a-social-media-strategy.html "Why No Event Should Be Planned Without a Social Media Strategy") or the dark web. Luckily, this [way of identifying users is becoming less common](https://www.financedigest.com/5-common-ways-people-end-up-in-debt-without-realising.html "5 Common Ways People End Up In Debt Without Realising") and according to Gartner, by 2022 80% of organisations will actually be using document-centric identity proofing as part of their onboarding workflows, around 30% more than today. Document-centric identity verification can continually verify users to [provide even more identity assurance](https://www.financedigest.com/red-box-introduces-new-functionality-to-provide-additional-compliance-assurance.html "Red Box Introduces New Functionality to Provide Additional Compliance Assurance. "), which is particularly important in higher-risk scenarios. On logging in, all a user must do is upload a fresh selfie, which [generates a new biometric template to be compared to the one created](https://www.financedigest.com/the-electric-vehicle-sound-generator-market-to-create-turbulence-in-automotive-sector-at-a-cagr-of-14-between-2019-and-2029.html "The Electric Vehicle Sound Generator Market to create turbulence in automotive sector at a CAGR of 14% between 2019 and 2029") in onboarding. This then [unlocks the user’s digital](https://www.financedigest.com/digital-finance-unlocking-new-capital-in-disrupted-markets.html "Digital Finance: Unlocking New Capital in Disrupted Markets") identity in seconds and allows for continuous and easy authentication. Businesses can be confident that all users are who they [say on an ongoing basis and that their data](https://www.financedigest.com/frances-thales-says-hackers-claim-to-have-stolen-data.html "France’s Thales says hackers claim to have stolen data") is secure. **Weaving trust into the entire process** It is not enough to [establish trust](https://www.financedigest.com/how-can-you-establish-trust-in-your-business.html "How can you establish trust in your business?") just at the start of the process. [Organisations must take a holistic approach via an end-to-end identity verification platform that can monitor multiple jurisdictions and fraud](https://www.financedigest.com/protect-your-organisation-from-fraud.html "Protect your organisation from fraud") signals when required. This will help to [maintain](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition") compliance and onboard customers faster while creating a more accurate and complete picture of customers and behaviour. Additionally, this allows organisations to meet evolving complexities surrounding the online economy and digital onboarding with a [continually adapting](https://www.financedigest.com/scholz-if-germany-continues-to-adapt-we-will-make-it-through-winter.html "Scholz: if Germany continues to adapt, we will make it through winter") solution. This will vary depending on the [sector in which an organisation](https://www.financedigest.com/westminster-city-council-and-4c-launch-joint-venture-to-help-public-sector-organisations-address-financial-squeeze.html "Westminster City Council and 4C launch joint venture to help public sector organisations address financial squeeze") operates. But, for financial services organisations, they will not only benefit from ongoing authentication solutions to stamp out account take over (ATO) fraud, but will gain access to greater benefits such as automated database pings, including government watchlists and PEPs and sanctions to help identify fraud and [anti-money laundering](https://www.financedigest.com/anti-money-laundering-time-to-take-a-new-approach.html "ANTI-MONEY LAUNDERING: TIME TO TAKE A NEW APPROACH?") (AML) risks faster. **Streamlining identity orchestration** Currently, many organisations are relying on multiple identity-proofing methods at once from multiple different [vendors which makes orchestrating different capabilities a challenge](https://www.financedigest.com/three-things-to-ask-your-management-team-and-accounts-payable-vendor-to-overcome-your-ap-challenges.html "Three things to ask your management team and accounts payable vendor to overcome your AP challenges"). To ensure that these workflows are streamlined, identity orchestration enables organisations to orchestrate the controls and assurances needed to [know and trust their end](https://www.financedigest.com/the-end-of-payments-as-we-know-it.html "The end of payments as we know it") users, all with a single vendor. Identity orchestration has the added benefit of allowing organisations to have real-time evaluations of different workflows and vendors which allows companies to see what is [needed to achieve their identity proofing objectives](https://www.financedigest.com/why-coding-needs-to-be-re-evaluated-for-sustainability-objectives.html "Why coding needs to be re-evaluated for sustainability objectives"). According to Gartner, by 2023, 75% of organisations will be using a single vendor with strong identity orchestration [capabilities](https://www.financedigest.com/ping-identity-releases-enhanced-capabilities-in-countdown-to-psd2-and-open-banking.html "Ping Identity Releases Enhanced Capabilities In Countdown To PSD2 And Open Banking") and connections to many other third parties for identity proofing and affirmation, which is an increase from fewer than 15% today. [Fraud is a growing threat to the UK public and economy with increased](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention") data available and more advanced ways for fraudsters to access it. However, companies still have time to [protect themselves and their customers](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?"). By implementing careful and orchestrated onboarding and KYC processes, financial institutions in particular can realise their full potential in the online [world without the threat of fraud](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD") and cybercrime. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---