How WireCash Manages Fraud and Found Success Underwriting Digital Money Transfers to High Risk Markets

How well would your fraud management program perform if your organization depended on it for doing business with customers from countries like Ukraine and Nigeria? Now what if we said your business was facilitating money remittances to these countries? WireCash is doing just that, and we sought to uncover how this could be possible by talking directly with the company that found success at the intersection of one of the highest risk industries and some of the highest risk countries in terms of online fraud.

The use of custom modeling and risk analytics also allows WireCash to be more consumer-friendly than they were in their ATMCash days, and compared to most online MSBs. While WireCash may sometimes require strong authentication or verification techniques, they try to eliminate the need for this and reduce friction for most new customers through use of risk modeling and amassing many neutral or low risk signals. They have also leveraged this experience and insight to enter new markets where others wouldn’t go or would only tread lightly. WireCash today helps consumers send money to Nigeria, Ukraine, Russia, Armenia and other countries that present high risk. Money Service Businesses providing remittances to these countries have tended to offer limited services or maintain several day waiting periods.

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Mitek Systems Acquires IDchecker for $10.6 Million

Mitek, who specializes in mobile onboarding and capturing solutions, announced they would be acquiring identity document verification provider IDchecker for $10.6 million. Mitek owns several patents related to mobile imaging technology used for mobile deposits and other applications for financial institutions but will now incorporate photo verification of identity and other documents following the acquisition of IDchecker.

While Mitek already had 21 patents issued, the acquisition of IDchecker will bring more. The patented algorithms and techniques behind IDchecker’s FACELINK facial recognition technology will complement the suite of services Mitek already provides to 3,700 financial institutions utilizing their Mobile Deposit services. In addition to the auto capture patent and facial recognition technology IDchecker brings, the acquisition makes Mitek’s ID verification capabilities and global presence more robust as their global ID document coverage expands to over 3,500 document types worldwide.

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Leveraging Identity Document Verification in the Mobile Channel

More and more consumers, as well as fraudsters, are browsing, buying and banking via their mobile devices. While this has benefited consumers with increased convenience it has also created new challenges for merchants, financial institutions and others that want to reach customers in the mobile channel, as they now must also manage new risks.

In this feature article The Fraud Practice discusses the mutually beneficial relationship between mobile devices and identity document verification, focusing on how this risk management technique can be best utilized within the mobile channel and how mobile device technology has made identity document verification a more viable option for merchants and other organizations beyond financial institutions.

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Identity Document Verification as a Lowest Common Denominator Risk Management Technique

The Fraud Practice discusses common issues merchants face with stale or unavailable identity data when attempting to authenticate and verify a user online and how identity document verification can be applied as a “lowest common denominator” technique in the latest feature article.

Too often organizations associate identity document verification with the banking and financial services industry, KYC and AML compliance, and other applications where it is used as a primary risk screening and verification technique. It is important to consider, however, that many other online merchants can benefit from using identity document verification as a secondary form of screening only when required. Because of its global applicability and ability to provide an indication of risk when identity data is otherwise not available for a consumer, identity document verification is something organizations can fall back on as a lowest common denominator fraud detection technique.

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Common Pitfalls When Performing Identity Document Verification as a Fraud Prevention Technique

It is common to find risk management teams relying on legacy identity document verification practices, which limits their ability to take advantage of the opportunity to leverage new technology and techniques to verify modern identity documents.  Making use of new identity document features and services can help protect the organization and improve customer retention and conversion.  To help organizations make the most out of using identity document verification The Fraud Practice has compiled a short list of the most common pitfalls merchants that perform identity document verification share.

In reviewing the common pitfalls it is important to keep in mind that in the past decade government issued identity documents (IDs) have evolved, but many systems and implementations for verifying IDs have not; unnecessarily leading to missed fraud and lost sales. Identity document verification can be an effective and often necessary risk management technique for many different types of organizations. Whether your organization manages a homegrown identity document verification solution,  uses a third party service or is currently evaluating options, the focus should be on maintaining good customers and an optimum user experience while detecting and mitigating identity fraud.

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The Fraud Practice Releases White Paper on Using Identity Document Verification to Increase Sales Conversion

To help companies better understand the methods for ID verification, The Fraud Practice has released the “Effective Methods for Using Identity Document Verification to Increase Sales Conversion” white paper, a free resource for merchants, financial institutions, and other organizations in the CNP space, both on the web and mobile.

Being able to trust the person you’re talking to is important, whether an encounter takes place face-to-face or online. ID Document Verification helps check a person is who they say they are and can help organizations accept orders where traditional verification fails. This white paper discusses what makes document verification effective in today’s market and how it can be used to allow organizations the opportunity to convert more sales.

Download the white paper today


New Technique Course and Data Sheet on Identity Document Verification

The Fraud Practice releases new online course on the use of identity document verification in a risk program and the current vendor market providing these services.

Organizations that are using or considering identity document verification need to understand how it is best applied, where it fits into a risk strategy, as well as the capabilities and features of ID document verification services offered by third party vendors. The Fraud Practice has released an Identity Document Verification Training Course with accompanying Technique Data Sheet to provide this information. The online training course discusses the use of identity document verification in a risk program and the current vendor market providing these services.

More information about the Identity Document Verification Technique Course & Data Sheet

The first 100 eligible organizations can attend the course and download the data sheet for free – Register Here

Measuring consumers’ patience with identity checks

A study performed on UK customers by Experian found that consumers on average will abandon transactions when identity checks take 7 minutes or longer to complete, although there is variation across verticals. This underscores the importance of organizations being able to present and perform these checks within an acceptable time frame or standard for their industry.

Identity checks might be in everyone’s best interest, but 45 percent of survey respondents backed out of at least one online transaction due to the length and complexity of the identity checks. Of this group, nearly half took their business to a competitor. Extended waiting times give consumers the opportunity to re-evaluate whether a purchase is necessary, and to look up products elsewhere to find a better price, or a quicker check-out process.

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