Identity Fraud Prevention in Today’s Digital Economy

With cyber criminals becoming increasingly sophisticated and hackers making headlines regularly, it is imperative that businesses employ advanced security technology. Identity proofing is a term for identity verification that is being adopted by analysts such as Gartner. From Gartner’s study1:

Identity proofing, a process that demonstrates with sufficient confidence that the user is who he claims he is, helps to establish and maintain trust in the identity throughout the relationship.

Identity Proofing Process

Collecting and verifying information about a person, provides businesses with another layer of assurance. Financial institutions can use identity proofing to prevent financial fraud and money laundering, while ecommerce companies can rely on it to combat card-not-present fraud. And with today’s technology, businesses can ensure that their processes are user-friendly, adopting technology that users are familiar with (i.e. fingerprints and selfies for facial recognition).

According to research by Aite Group, card-not-present (CNP) fraud in the U.S. is expected to reach $7.2 billion per year by 2020. Government agencies need sophisticated identity proofing for security clearances. Identity proofing also helps organizations in the healthcare industry prevent HIPAA violations. As identity fraud becomes a concern across industries, identity proofing solutions are needed to establish trust in digital relationships.

Organizations that need to proof identities are turning to third-parties to build solutions. According to the Gartner study1, third-party solutions have come up with various options for companies to use to verify identities, including:

  1. Knowledge-based verification: In this approach, the user is asked a series of questions that they would need to know the answer to in order to confirm their identity. Examples of these questions include past mailing addresses, mortgage amounts, and lender names. Knowledge-based questions aren’t entirely secure, though, since the answers to these questions can be obtained through a hack. Back in 2015, scammers were able to steal tax refunds by figuring out the answers to these questions.

 

  1. Secondary passwords: ID proofing services can issue temporary one-time-use passwords to verify identities. Users are sent a one-time password via an “address,” like a home address or email address. They then have to enter the one-time password to verify their identities. Organizations may ask users to bind themselves to an identity associated with a known trusted online account, like their social media accounts. The risk with these other accounts is that social media profiles and email addresses can be hacked.

 

  1. Biometrics: In countries with fingerprint registries, organizations can require fingerprint scans to verify identities. However, some users may take issue with this method if they are concerned about privacy. Organizations can also use voice recognition and facial recognition to verify identities, although facial characteristics change throughout life. As biometric technology becomes more commonplace in the business environment and more accepted by consumers, industries can leverage it to ensure stronger identity security.

Proofing identities in other countries can be challenging since different countries use varying forms of government-issued IDs. According to the Gartner report1, some of the problems global companies can run into are:

  1. Social Security Numbers Create Vulnerabilities: In the U.S., citizens are often identified by their Social Security Numbers, but this method of identification doesn’t translate over into countries. Some countries also do not have official national IDs. Instead, these countries will issue out IDs for specific purposes like access to healthcare or tax collection, which may not be considered sufficient for identity proofing.

 

  1. Different Global Standards: Privacy and data protection legislation vary between countries, which limits the information identity proofing services can capture, gather, and store. This legislation can even block companies from sharing data across borders.

 

  1. Technology Verifications Often Falls Short: Technology limitations and regulations can prevent identity proofing providers from being able to conveniently verify information against government lists like registries of births, marriages, and legal permits.

Although fraud is an increasing concern for global companies, the good news is that options for solutions are also increasing with a wide range of identity proofing services that can be adjusted to fit different industries.

 

1Source Gartner Identity Proofing Is the Cornerstone of Trust in a Digital Relationship, October 2016

Guests Prefer Hotels With More Technology

In response to what consumers want, hotels are increasing the amount of technology they use throughout their buildings and resorts. Most hotels offer free Wi-Fi, which is the number one amenity that guests want when they book a hotel room.

In response to what consumers want, hotels are increasing the amount of technology they use throughout their buildings and resorts. Most hotels offer free Wi-Fi, which is the number one amenity that guests want when they book a hotel room.

Some hotels are planning on going way beyond Wi-Fi and are using robots to staff their hotels instead of employees. Henn-na Hotel, which will open in July, plans to staff its front desk with ten life-like robots. The Japanese hotel will only hire two human staff members and will rely on robots to interact with guests.

The robots are programmed to greet guests in several languages, carry bags, and even clean the 72 rooms the hotel will have. The robots can also answer guests’ questions. Although the Henn-na hotel may be suited only to certain guests, most hotels are increasing their budgets to allow for more technology that conveniences their guests.

In California, Aloft Hotel already has robot butlers that can make deliveries to your hotel room. They have an automated call to your room when they arrive, and you can rate their service as well.

Give Your Hotel Guests What They Want

A recent market research study was done by Software Advice that had these results:

  • 60% of survey respondents are more likely to choose a hotel that allows them to check in and open doors with their smartphones.
  • 37% of respondents are at least “moderately likely” to choose a hotel with lobby technology, like kiosks that allow for self-service check-ins.
  • 63% of respondents prefer hotels with tech-enabled lobbies that offer information through interactive touch screens.

These survey findings illustrate that guests prefer to use technology to exchange information. Guests prefer to check-in using quick technology, instead of waiting in long lines to get checked-in by a front desk employee. With self-service kiosks in the front lobby, guests who are in a hurry can get past long lines and go straight up to their rooms in a matter of minutes.

Use Card Scanners For Quick Check-Ins

Even if hotel lobbies don’t have self-service kiosks, front desk employees can use card scanners to quickly verify information and send guests up to their rooms. Out of the people surveyed, 29% said they wanted a faster check-in and check-out process. 24% of respondents said they wanted technology to add convenience to their travels.

No matter what stage of the technological embrace a hotel is at, it’s obvious that consumers want more technological efficiencies in their hotels.

From a simple swipe of an ID card to gather all necessary information instead of manual typing to a fully mobile registration solution, Acuant offers the ability to improve the registration process by automating information entry.  Acuant’s idScan software can gather information from IDs and auto-populate the data into forms