1.2. IDV Use Cases

The IDV scores can provide critical real-time identity intelligence for numerous purposes, including:

1.2.1. Safe New Account Origination

Account creation is a key variable in establishing a company’s relationship with a consumer. Making account creation as frictionless and easy as possible is an important factor in keeping customers coming back to your business. In the same way, recognizing suspicious applications and bad actors during the account creation process, effectively cutting them off at the source, is paramount to protecting the business from costly fraud losses. It is clear that depending on static identity alone in the workflow is ineffective and leads to bad outcomes such as fraud. However, depending heavily on second factor authentication and other burdensome and costly identity methods lead to frustration, confusion, and registration abandonment.

ADARA's IDV scores can provide real-time and privacy-first identity intelligence to score new account applicants against our consortium of global identifiers, effectively identifying which applicants are low risk and which are high risk. This will reduce friction on new account openings by integrating risk scores directly into your authentication workflow. These data signals can not only be used to verify customers’ digital identities at account creation/customer acquisition, but also to find prospects in your target segment and personalize their digital user experience.

1.2.2. Preventing Account Takeover

Companies want to provide a seamless digital customer experience that welcomes verified customers and prospects to their profiles or accounts while recognizing and stopping bad actors. Account Takeover (ATO), an online version of identity theft, is particularly sinister due to the enormous impact it has on your brand and your customers. ATOs occur when a fraudster accesses your customers’ accounts using means such as phishing, botnets, and stolen credentials from the darkweb. This results in fraudulent transactions coming from the account and a severe breach of your customers’ personally identifiable information.

The most effective way to identify and stop account takeover before a breach occurs is to deploy deterministic digital identity intelligence signals like ADARAs IDV scores to key customer touchpoints such as profile changes, large transactions, loan and credit card applications, and insurance claims. Using these IDV scores, companies can verify the digital identity behind transactions in real-time, effectively identifying bad actors and fraudulent transactions. This will foster seamless and personalized user experiences for your existing customers while simultaneously protecting their accounts, financials, and personal information from cybercriminals.

1.2.3. Preventing Policy Abuse in Loyalty Programs

Loyalty programs fight fraud on multiple fronts and across many organizations. Simply put, Loyalty Program Fraud or Reward Points Fraud occurs when someone abuses or exploits a company’s rewards program for their own gain. In particular, policy abuse represents huge risks for businesses. This occurs when a company offers a sign-up bonus that is exploited by a customer to gain more points, and represents huge risks for businesses. Combined, loyalty program fraud represents billions of dollars in lost capital to companies yearly.

ADARA's IDV scores can help loyalty programs stop fraud and accelerate legitimate transactions. Our clients can seamlessly verify new customers and protect their existing customers by assessing their IDV scores at key touchpoints including transactions, transfers, and profile changes without added friction.