Is Bank-verified Digital Identity the Missing Link in Solving Payment Fraud?

OneID®’s latest white paper, launched at Pay360, points the financial services and payments industry to an effective solution to one of the most pressing challenges in the UK’s digital economy.

OneID®, the UK’s only document-free digital identity verification solution, released its latest white paper, "Is Bank-based Digital Identity the Missing Link in Solving Payment Fraud?". The paper presents an analytical view of the current payment infrastructure, the safeguards in place, how fraudsters circumvent them, and how strong digital identity verification can close the gates to fraudsters.

Rob Kotlarz, Co-Founder of OneID®, shared insights from the paper while speaking at the Pay360 panel – "Digital Identity: Who Should Own Customer Trust?"

‘Strong digital identity verification will stop fraud before it reaches the payment rails and strengthen the measures banks and payments industry have put in place. But at the same time, the method should be frictionless, seamless and fast – so that businesses don’t have to choose between robust fraud prevention measures and a delightful customer experience. Bank-verified digital identity verification, which uses the open banking infrastructure, brings these contrasting aspects together to deliver a customer-centric approach to identity verification.’

Rob Kotlarz, Co-founder, OneID®

Here's a quick look at the key points the paper raises:
Fraud, a matter of national security

Fraud, alongside computer misuse, constitutes 50% of all crimes. UK Finance reports a substantial £580 million loss to fraudsters in the first half of 2023. In the middle of a cost-of-living crisis, these numbers threaten business continuity, economic stability, and the well-being of UK citizens.

Regulatory response and current challenges

While UK regulators have introduced measures like Strong Customer Authentication (SCA) and Confirmation of Payee (CoP), there are gaps in the identity verification processes that leave room for exploitation by fraudsters, particularly in digital payments.

Bank-based digital identity: the missing link in the payment industry’s response to fraud 

Bank-verified digital identification solutions, like BankID in Norway, have helped reduce fraud to 0.00042% of payment transactions. By verifying account ownership and securing digital payments, digital identity offers a robust defence against fraudulent activities.

Going a step further: Empowering businesses and consumers

By streamlining identity verification processes, bank-verified digital identity enhances security and the user experience. Businesses can deliver seamless, secure transactions, while consumers benefit from improved data accuracy and reduced friction.

OneID® – delivering an end-to-end digital identity verification journey

As the UK's only document-free digital identity verification solution, OneID® eliminates the possibility of synthetic IDs and the friction associated with the process. Using bank-verified information, OneID® provides the most reliable identity services businesses can use to verify 90% of UK individuals.

About OneID®
OneID® - the UK's fastest, easiest, and safest digital identity service.

OneID® is the only document-free and truly digital identity service provider that creates absolute certainty between a business and an individual in real time. By leveraging bank-verified data, OneID® brings speed, simplicity and compliance to the digital identification process.

Our digital ID services use the most advanced counter-fraud measures to help protect banks, businesses and individuals from online identity fraud. By streamlining existing ID processes, including payments, direct debits, onboarding and more, we help businesses reduce operational costs, increase sales and improve customer engagement. 

As the UK’s only identity service with access to bank-verified information,  around 50 million individuals in the UK can use OneID® to prove their credentials online – instantly, without any app download or account creation. OneID® is government-certified, regulated by the FCA and is a B Corp business. 

Headquartered in the UK, we have brought together the best people in Digital Identity, Payments, Banking, Technology and Government to ensure we make the world a safer place.

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