Recently, technology research firm Gartner released their “Market Guide for Identity Proofing and Corroboration” for 2018. In their report, Gartner explores the identity proofing market and its relationship to customer identity and access management (CIAM) in-depth.
Indeed, the technologies if poorly implemented can be a root cause of customers abandoning enterprises, leading to a balancing act between identity security and the user experience—the risk of loss via fraud versus the risk of loss via reduced market share. In addition, Gartner contends that absolute verification in identity proofing is now outright impossible; static personally identifiable information has been too frequently stolen in high-profile hacks and data breaches to serve as an authentication method.
But What is Identity Proofing?
According to Gartner, identity proofing is the series of interactions and activities that make an identity claim verifiable. These solutions seek to prove that the identity is real (preventing synthetic identities) and that the user claiming the identity legitimately owns it (preventing identity fraud or theft).
What Should Enterprises Do With Identity Proofing?
For years, static personally identifiable information was the key to identity proofing, but given the availability of stolen identities, this can no longer be the case. Further, Gartner notes that enterprise attempts to use deeper personal information to verify customers often led to false positives—even the legitimate customers didn’t know the answer—and a higher rate of customer abandonment.
To adapt to the new reality, enterprises are adopting new technologies to detect identity anomalies to prevent fraudulent activities including identity corroboration hubs, rule/policy engines, and identity information aggregation and normalization tools. Gartner also recommends that enterprises:
- Invest in identity proofing upgrades or outright replacements to their current solutions.
- Build better use cases to reduce the risk of fraud, false positives, and customer abandonment while simultaneously improving the customer experience.
- Extend identity proofing to login and account maintenance cases, not just at the new user stage.
- Evaluate current methods and their stability
- Assess the costs of implementing new technologies, including against the costs of reduced customer experiences
Gartner named Acuant, BioCatch, Buguroo, Emailage, Experian, EZMCOM, Fraud.net, IBM Trusteer, ID Analytics, IdentityMind, IDology, iovation, Jumio, Kount, LexisNexis Risk Solutions, Mitek, Nuance, NuData Security (A Mastercard Company), Pindrop, SecuredTorch, ThreatMetrix (A LexisNexis Risk Solutions COmpany), TransUnion, TRUSTID, and Whitepages Pro as Representative Vendors in the market.
You can download the full Gartner Market Guide for Identity Proofing and Corroboration” for 2018 here.
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