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Is Fraud Mitigation on Mobile Devices A Riskier Business?

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4 Is Fraud Mitigation on Mobile Devices A Riskier Business? Knowledge-based authentication (KBA) is a reliable fraud-mitigation tool, especially in high-risk account-opening situations. But applying it in mobile situations requires some adjustments. Asking more than two questions in a mobile situation may begin to degrade the user experience. That's why it's critical to meet the right balance between customer convenience and identity examination, while still meeting applicable regulatory requirements. Using "perishable" data – rather than static information – to verify an identity, also helps combat fraud. Static data, such as the account holder's home address or mother's maiden name, can be obtained by fraudsters during a data breach. Perishable data, such as the name of a restaurant visited in the past week or information on a large purchase, changes frequently. Perishable data questions are generally easy for consumers to answer. For fraudsters, obtaining this information requires significantly more effort and investment. Do mobile devices enable weightier identity-verification strategies? The passive identity checks that mobile devices enable are invisible to consumers and do not complicate transactions. In low-risk situations, the reliability of passive checks are to approve a transaction with no additional verification. Still, organizations need to simplify the submission of even the most basic account information. Robust application solutions enable mobile devices to instantly autofill forms when consumers submit pictures of their driver's license or other acceptable photo identification. The device and application data can then be authenticated with search- match analysis or through smartphone ID fingerprinting. Organizations that require consumers to complete forms need to be judicious about the amount of information they require. Despite the increasing size of smartphone screens, most traditional forms are too long for a user-friendly digital experience. If dynamic sources are incorporated into the mobile account processes, identities can be reasonably verified with the fewest number of questions. The most important thing for organizations to consider is this: Enterprises do not succeed by mitigating fraud. They win by creating great user experiences. How can organizations reduce abandonment rates on mobile devices? Robust application solutions enable mobile devices to instantly autofill forms when consumers submit pictures of their photo identification.

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