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Verifying the identity of modern users is difficult. The process should not only keep out unauthorized users, but also needs to maintain the user experience (UX) so that legitimate users aren’t turned away and pushed to use another site.
There is no one-size-fits-all solution to identity verification, and organizations should alter the verification process to whatever makes the most sense for their business and their users.
In response to this need, Persona today launched Dynamic Flow, a risk response and verification engine designed to customize the identity verification process for each user.
The solution uses real-time data signals, including active signals like submitted address, passive signals like IP address and observed user behavior to determine the level of risk a user presents. It aims to stop identity fraud in its tracks.
While this type of identification verification approach is usually designed to cater to specific industries — such as fintech or financial services — as more business transactions move online, the number of organizations that require solutions to verify users has increased dramatically.
The need for real-time fraud detection
The announcement comes as enterprises are in dire need of a solution to prevent identity fraud, which has remained a consistent problem for years.
Last year alone, identity fraud losses totaled $52 billion and impacted 42 million U.S. adults. One of the reasons for this high level of fraud is that organizations have struggled to develop a verification process that implements adequate security measures but doesn’t ruin the user experience.
Persona aims to customize the verification process on a case-by-case basis.
“Automatically adjusting the verification flow allows businesses to further customize the verification process, minimize friction as much as possible for the majority of their customers while appropriately stepping up fiction for potential bad actors based on Persona-detected risk signals,” said Rick Song, CEO of Persona.
He went on to share an example of such, “if a user fails to provide a valid address, businesses can ask for proof of address, like a utility bill. If a user is trying to sign up from outside the country, business can ask them to attest they are a resident. If a user has an expired ID, businesses can ask for additional documents for them to identify who they say they are.”
The goal is to catch malicious hackers and fraudsters without impeding the user experience with unnecessary verification steps for legitimate users.
Real-time risk and identity theft protection
While Dynamic Flow is most accurately described as a risk response and verification engine, it falls loosely within the identity theft protection market, which researchers valued at $10.07 billion in 2021 and anticipate will reach $27.90 billion by 2029.
As an anti-identity theft solution, Dynamic Flow is competing against other providers in the space like Entrust, which offers protection to combat identity fraud with continuous authentication that can detect malware or Trojans.
It’s also competing against iDenfy, a provider delivering an identity verification, fraud prevention and compliance platform that uses AI to verify customer IDs. iDenfy provides organizations with a mix of user verification services including ID verification, face recognition, address and phone verification.
However, while more solutions are looking to enhance the verification process, Song says that Dynamic Flow is the only solution that can complete identity verification and dynamic collection at the same time.
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