Digital identity: A business imperative
8 January 2016
By Stephen Topliss, VP of Products, ThreatMetrix
How businesses are securing transactions and driving revenue by embracing digital identity
- Traditional authentication methods are ineffective in a post-breached world
- Distinguish between genuine customers and fraudsters with digital identity
- Protect online revenue with smarter authentication of customers
Digital identity is where cyber-crime and fraud prevention meets revenue generation for digital businesses. With each data breach that hits the news, online transactions and logins are targeted with a growing pool of stolen credentials. Traditional identity-proofing methods are fast becoming ineffective.
However, onerous security processes that seek to address this issue can often create barriers to online transactions and business interactions. That is why digital businesses are turning to the concept of digital identity to protect against fraudulent activity while authenticating users accurately and without adding friction.
Every time a consumer makes an online transaction, they leave a digital footprint. This is spread across multiple devices, locations, addresses and payment methods, and across their personal and business activity. In contrast, the footprint of a fraudster is often markedly different to a genuine customer, as they go to great efforts to mask their devices, location and true identity.
Businesses looking to operate successfully online must piece together all the hundreds of identifiers connected to a user to gain insight into their users’ true digital identities based on a pattern of trusted behaviour.
At ThreatMetrix, we are committed to helping digital businesses bring together all aspects of a consumer’s online devices and behaviour into one unique, anonymised digital identity in a way that is completely transparent to consumers. We can recognise up to 95 per cent of trusted users, and what enables us to do this is the world’s largest Digital Identity Network, built on the global shared intelligence from more than a billion transactions per month.
Removing friction from authentication accelerates conversion rates for e-commerce by up to 4 per cent, drives up satisfaction levels for online banking and maximises revenue. Understanding consumers’ digital identities not only drives down fraud losses by up to 90 per cent, but also lowers operational costs related to fraud up to 50 per cent by decreasing reliance on costly step-up authentication and manual reviews.
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