Traditional financial institutions and FinTech businesses are dealing with increased online fraud, and with stringent regulations that have driven compliance operational costs up. In 2014, for instance, 62% of companies were targets of payment fraud, and compliance fines by regulatory bodies in the US account for more than $10 Billion.

In order to mitigate fraud and meet anti money laundering compliance requirements, financial institutions (traditional and FinTech) have responded by adding friction to their online onboarding and transaction processes. Friction that includes, additional identification methods and additional paperwork. Friction that ultimately slows down customer growth.

The problem is that the added steps in the onboarding process are applied to all potential customers, even when there is little risk. Regulators have pushed for a risk based approach where only the “risky” ones are moved through a strict set of identity validation and fraud prevention activities, and those deemed “low risk” can have a more streamlined, low-friction experience.

So , the problem is simple: who is on the other end of the transaction and should you trust them?

At IdentityMind, we have always believed that the solution is Trusted Digital Identities, and its why we architected our platform around them. While standard digital identities are representations of entities (e.g. individuals, businesses, affiliates) that perform transactions online and are identified through a handful of attributes, Trusted Digital Identities are online identities you can trust. They are the result of rich, real time and historical data that provide a comprehensive and current view of the entity in question, and intelligence that ensures identity attributes are used by the expected entity, and not by fraudsters. Furthermore, Trusted Digital Identities are not sanctioned by regulatory bodies, or affiliated to nefarious groups.

People in the digital world are much more than just parameters in a database: they are a mesh of attributes and online profiles. Trusted Digital Identities, built using IdentityMind’s eDNA™ technology are defined by the following characteristics:

  • Richness of data: eDNA™ captures over 50 attributes (e.g. IP address, mobile device number, geolocation, payment information, national IDs, driver’s license, and more); and compiles identities from the digital transactions within the IdentityMind network of clients.
  • Up-to-date in real time: eDNA™ cleans Trusted Digital Identities, aging attributes that are not in use and marking attributes that have been compromised without tainting the compromised identity.
  • Reputation: eDNA™, through Graph Intelligence, correlates attributes in real-time to build an entity’s risk profile to help you decide whether to work with that entity.
  • Uniqueness: eDNA™ provides the ability to understand whether two or more similar identities are in fact the same entity. While there are many Joe Smiths, Juan Garcias, or Mohammed Abduls on the web, eDNA™ knows that they are different, and helps ensure that you find the one you are looking for.
  • Affiliation and Affinity: Each attribute is compared against sanctions lists, Politically Exposed Persons (PEP) lists, social networks, and the deep/dark web to assess the potential ties of an individual to financing of terrorism, human trafficking, money laundering, fraud rings, and other nefarious groups.

Graph Intelligence, a key capability of eDNA, leverages Trusted Digital Identities to help uncover complex risk and money laundering scenarios in real time. It does so by applying big data analysis to the correlation of identity attributes and transactions. The identity graph is unique to IdentityMind and the complexity of the graph (diversity, depth and reputation) has a strong correlation to the risk of a transaction — the more complex the graph the higher the risk. Because IdentityMind leverages an industry-leading number of attributes in its Trusted Digital Identities, IdentityMind is to provide a more detailed risk profile for each identity.

And, take a look at our Identity Graph Intelligence press release.

Contact us at [email protected] to learn more.