Digital Identity Authentication - The Answer To Avoiding Application Fraud

Dublin, 24th July 2020

The financial services sector is constantly changing due to a shift in digital technologies and customer expectations, forcing banks to deliver innovative solutions for their clients, and quickly.

But with such technology and increased innovation comes a mountain of regulations to adhere to such as PSD2, SCA, GDPR and much more. This has led to many fintech companies having to re-visit their current AML and KYC policies and procedures.

And for good reason.

The increased usage of digital payments across a variety of sectors has meant that internal controls have been tightened across financial institutions in order to safeguard customers’ cards, funds, and bank accounts from cybercriminals. This is because as technology increases and cybercriminals get smarter, fraud also increases. The current state of affairs is that over 16 million Americans are victims of identity fraud each year.

What’s more is that the recent pandemic has also caused many companies and organisations to encounter an increase in the levels of financial crime and e-crime, a form of cybercrime. This means it’s become increasingly more important to focus on safely securing client payments than ever before, whilst at the same time creating a seamless user experience. Something that we at MiFinity have certainly done.

What many financial companies are struggling with though, is to create this experience in such a way so as not to lose the trust of their customers. Customers need to feel confident that their transactions are correctly transferred securely and with ease. They also need to know that their personal information is safe and secure too, in order to keep them from falling victim to cybercrime.

The UK payment and financial services account for about 75% of cyber-attacks, according to Finextra.

So whilst cyber-crime continues to increase, so must security measures for all financial services, as well as keeping up to date with the latest technology and always innovating to create a great experience for clients.

Multi-Factor Authentication and Identity Fraud Detection

It’s important that the awareness of digital identification and authentication is spread and that customers are aware of the layers of security that are added to their accounts for their own safety. Multi-factor authentication (MFA) ensures customers provide two or more independent authentication factors before they proceed.

These methods can be divided into 3 categories:

  • Something the user knows (such as a password or PIN code)
  • Something the user has or possesses (such as a card or mobile phone)
  • Something the user is (such as biometric authentication)

Our MiFinity eWallet has rigorous controls and perimeters in place to safeguard our customers’ funds, personal and banking details. We apply Customer Due Diligence (CDD) and KYC (Know-Your-Customer) checks before an account is fully able to transact, to ensure that the data we hold is legitimate and cross-checked in accordance with current legislation. As a regulated financial institution, MiFinity also abides by the European AML and CFT Directives and operate advanced AI fraud-prevention tools and strategies to safeguard against all forms of fraud and cybercrime currently infecting the financial arena.

Your MiFinity e-Wallet

Holding a MiFinity eWallet means that all your private information is encrypted and protected within a very stable platform that offers the opportunity to transact with anyone in the world, across a multitude of payment methods, while offering complete confidence that there is a massive engine behind the scenes that is enabling fast and secure global payments.

As always, we keep living up to our slogan “Payments Without Borders” to ensure we keep processing payments for our customers and merchants at all times, without borders, but with the necessary safety and security measures that are required.