Trulioo Debuts New ID Verification Platform

Identity security firm Trulioo has unveiled a global identity platform for personal and business verification.

As the company noted in a Tuesday (Jan. 31) news release, the launch comes as a surge in eCommerce, mobile payments and digital currencies offers businesses chances for innovation and growth, but also challenges them to meet strict compliance standards.

“The identity and regulatory worlds are complex, especially for businesses who are multinational,” David Mattei, Strategic Advisor at Aite-Novarica Group, said in the release, noting the challenge of meeting standards such as anti-money laundering (AML) requirements.

“On top of that, companies need customizable workflows to deploy these types of solutions within their ecosystems,” Mattei added. “A solution that combines identity verification and compliance on a global scale while also being client-configurable is a much-needed capability in the industry.”

That’s in keeping with recent research by PYMNTS, which found that many businesses are realizing the need to upgrade their identity systems to prevent falling victim to scams and fraud.

The January PYMNTS/nsKnox “B2B Fraud Tracker” also showed less than one-third plan to outsource this upgrading, which suggests that most companies planning to make changes to their ID systems will do so in-house.

“Internally developed solutions to large, overwhelming problems, such as the need for modernizing fraud-fighting systems, can be particularly tricky, as this type of solution development can severely drain resources and has no guarantee of success,” PYMNTS wrote.

In addition, the risk of failing to meet this challenge is high, as businesses lose an average of 3.5% of their revenue to fraud per year. Improper authentication can slash current revenue and cause businesses to miss future revenue opportunities, with 54% of retailers and 44% of manufacturers failing to onboard new customers due to fraud concerns.

At the same time, additional research by PYMNTS showed that 67% of executives at financial institutions say that the complexity of regulatory compliance standards is holding back their efforts to fight fraud.

Forty percent of executives pointed concerns over the potential complexity involved in the day-to-day use of new technologies, and the same 40% also mentioned a presumed integration complexity of combining new fraud prevention controls with old systems as a factor holding them back from investing further in anti-fraud innovations.

That doesn’t mean, however, that financial institutions aren’t taking action.

“The Overlooked Importance of Securing Incoming Payments,” another PYMNTS and nsKnox collaboration, showed that 85% of chief financial officers are either investing or planning to invest in digital solutions for fraud prevention and risk management.