Balancing UX with strong identity verification processes, crucial for businesses

The report also found that there is a growing impact of large-scale data breaches and fraud on consumer trust, and senior executives believe their companies are still not prepared to combat synthetic identity fraud and mobile attacks. Additionally, the California Consumer Privacy Act (CCPA) is expected to have significant implications in 2020 and many businesses may not be ready to comply.

Five Key IDology Fraud Report Findings:

• A decline in consumer trust - 49% of businesses report a decline in customer trust over the past year. Additionally, 46% indicate that increased regulations are a top impact of large-scale data breaches.
• Fraud vectors are shifting away from point-of-sale (POS) - 58% of businesses report fraud is increasing in their online channels.
• New fraud threats, synthetic and AI fraud on the rise - 40% of businesses across industries experienced an increase in synthetic identity fraud (SIF) over the last twelve months and 92% percent expressed concern over SIF. The study found 33% believe that the fraudulent use of artificial intelligence and machine learning will be the most severe form of fraud in the next three years.
• Compliance is an increasing burden - 28% of businesses believe CCPA compliance will be more burdensome than GDPR while 30% believe it will be equally as burdensome. CCPA contains additional rules with respect to identity verification that go far beyond what is required for GDPR.
• How to thrive in the changing environment - 96% of businesses see identity verification as a competitive differentiator. Also, 80% believe accurate address verification is very or extremely important to the identity verification process.