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3 Key Risk Factors Financial Institutions Need to Be Aware Of in 2020

January 2, 2020

As technology evolves, so do the methods that cybercriminals utilize to commit identity theft and fraud. Last year alone, the Federal Trade Commission processed 1.4M fraud reports amounting to $1.48B in losses. Given that federal law states that financial institutions are held responsible for returning consumers’ money if their account was hacked, it is extremely critical to ensure financial institutions are utilizing an authorized source to provide data in order to assess risk properly while validating the identity of potential customers.

Here are three key risk factors financial institutions need to be aware of:

1. Has the user recently ported their number? With transactions occurring around the clock on devices outside of banks, it is critical that financial institutions ensure they are dealing with the correct account owners. A warning sign of fraudulent access is if the user recently ported their phone number. Timing is everything here. Fraudsters can “steal” a number and port it to their own device, then wipe out a bank account – all in less than 10 minutes.  Financial institutions need the most up-to-date and accurate porting data. 

2. Who is the current service provider associated with a telephone number? A porting data service is also able to provide accurate identification of the service provider associated with each phone number. This is helpful to determining the validity of the potential customer and beneficial in answering questions surrounding the standing of the account.

3. Does the device that’s being used on a current transaction match with what is on record with the carrier? After receiving updated and real-time information regarding the service provider of record, financial institutions can go directly to the provider to confirm the device. This information can be used as a second point of corroboration when determining if the user trying to access the account is correct. The ability to quickly assess risk without inconveniencing the customer who is waiting for their transaction to complete is crucial to maintaining secure accounts and high customer satisfaction levels.

iconectiv® PortData Validate makes key information available that puts real-time intelligence into financial institutions hands and allows them to easily check for the risks identified above. Available to identity aggregators in support of their businesses that use telephone numbers as part of their fraud mitigation and risk assessment service, Port Data Validate verifies the porting history and service provider ownership for a specific number. The tool enables financial institutions to quickly verify a customer’s mobile service provider and device type before authorizing a transaction without causing delays that could undermine the customer experience. Learn more.