There has been discussion lately regarding dynamic
knowledge based authentication (KBA) and the possibility for fraud
still to occur where the data sources used to generate the out of wallet
questions (i.e. credit bureaus, utilities) have been breached.
If youre not familiar with dynamic KBA, it is a
method for verifying the identity of an individual by asking questions that
only that individual should be able to answer. These questions are often
referred to as out of wallet questions, as having access to an individuals
wallet or purse would not be sufficient to provide the correct answers.
At EVS we use a combination of public and private data sources to generate
these questions internally, making it even more difficult for questions to be
answered by anyone other than the individual they claim to be.
Dynamic KBA is not a perfect solution, and cannot
guarantee preventing 100% of identity fraud, but the reality is that there is
no solution that can. EVS has seen clients decrease fraudulent
enrollments by over 99% by implementing KBA as part of their enrollment
The lack of a perfect solution should not be
taken as a reason to avoid implementing a fraud prevention
solution. Every fraudulent transaction has an impact for both the
business and their customers, and every fraudulent transaction avoided likewise
makes a difference.