Among the report's key findings:

Driven by the belief that fraud attempts are increasing in frequency and sophistication, identity verification is a priority for most organizations (93%). While they vary in the degree to which they use advanced techniques, most organizations want to improve their methods and outcomes. Just 2% percent believe they are completely successful at identity verification.
Organizations want access to more data points (just 13% say they have all the data they need) and seek data linkages (relationships between data elements) to improve their verification processes. While access to traditional data (like a street address) is common, many still don't have or use digital data (like an IP address). Most respondents believe linking data reduces fraud with 77% believing it increases a customer's identity confidence.
Organizations want more and improved identity verification automation. However, they often rely on in-house (historical data and white/black lists) that make it difficult to expand the automation use, resulting in an over-reliance on costly and time-consuming manual reviews. A large majority (71%) believe machine learning can help reduce manual reviews and make verification more effective.
Organizations may not be balancing the barriers to adoption of better identity verification against the true cost of waiting. Those holding back most often cite cost, ROI uncertainty, the perceived lack of in-house skills, and the risk of increased customer friction. But the combination of direct hard dollar costs from fraud (an average of $548,500 per year) along with impacts such as reputational damage, lost business, lower revenues, and fewer repeat customers needs to be factored into the decision to implement a more mature identity verification strategy.
Achieving the highest stage of identity verification maturity produces the greatest benefits. Organizations that reach the fourth stage of maturity see the largest overall reduction in fraud rates, fewer manual reviews, and an increase in clearing good transactions. This translates into both greater operational efficiency as well as improved customer satisfaction.

The report defined four stages of identity verification maturity:

Instant Insights /

Organizations Seek Better ID Verification, But Most Don't Think They Do It Well

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