Continued threat of evolving fraud types According to a recent report by Cifas, the UK could be heading into 2023 with unprecedented levels of fraud spurred on by the cost of living crisis. The figures reveal that more people have reported being a victim of identity fraud, which has increased by nearly a quarter (23%) compared to pre-pandemic levels. With no sign of abating, solutions that provide robust identity verification measures must be implemented to combat this type of fraud. By utilising technologies such as biometrics and artificial intelligence (AI), organisations can enhance the security of their systems, all thewhile improving the customer experience. Biometrics, such as facial recognition and fingerprint scanning, can quickly and accurately verify a customer’s identity, reducing the risk of fraud. AI-powered fraud detection systems can in turn analyse large amounts of data and identify unusual patterns, helping to prevent fraud before it occurs. Our research shows that over half of UK consumers (57%) are more likely to engage with an online financial services provider that has robust identity verification measures in place, so by embracing these solutions, financial services organisations can better combat fraud in a way customers are open to. Digital identity payments The shift toward a cashless society has spurred on the adoption of digital payment methods. Debit and credit cards are declining in popularityas consumersopt for the convenience and security offered by mobile wallets and payment apps such as Apple Pay. Biometric authentication of digital identities is a driving force behind this trend; e-wallets and digital banking apps tend to provide a more secure and convenient way to store and authenticate financial information and complete transactions without the need for physical cards or cash. In fact, in 2023, it is expected that the number of transactions made through digital identities will surpass those made through traditional credit and debit cards. As consumers grow more comfortable with the use of 57% of UK consumers are more likely to engage with an online financial services provider that has robust identity verification measures in place.” “ The UK could be heading into 2023 with unprecedented levels of fraud spurred on by the cost of living crisis. Bank i ng & F i nanc i a l Se r v i ce s 16 Finance Monthly.
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