From a business perspective, capturing millennial business and future tech-focused generations is vital. At least 54% of their purchases are online and they exercise significant purchasing power: there are roughly 80 million Millennials in the U.S. and in 2020 are expected to represent 30% of total retail sales spending $1.4 trillion annually.
With the digital shift that we see in everything from banking to grocery shopping, businesses that embrace online channels need to feel confident that their customers are truly who they say they are – how do they manage increasingly sophisticated fraud and appropriately address their level of risk?
Identity verification technology can provide a simple answer to gain trust and loyalty. The question is what solution is right for your business that has the right balance of security, meeting compliance needs and providing a good user experience. The wrong balance can mean being targeted by fraudsters, being subject to regulatory fines or losing customers.
What Does Not Work
KBA (knowledge-based authentication) and passwords are ineffective and outdated on their own. With KBA, having to answer personal questions about one’s pet, place of birth or previous addresses is not only cumbersome but also not secure. Much of this information is available in public records or on the dark web for easy access for fraudsters. Passwords are also very easy to hack and leave business and consumers very vulnerable. Gartner predicts that by 2022, 60% of large businesses and almost all medium-sized companies will have cut their dependence on passwords by half.