Identity verification is one of the hallmarks of a robust lending operating system. Whether our clients are in point of sale financing or buy now pay later (BNPL), consumer identity is paramount to portfolio health.
With identity theft on the rise, it’s more important for lenders to access a vast database of identity records to triangulate an applicant’s identity.
PIIs (Personally Identifiable Information)
PIIs or personally identifiable information includes name, address, date of birth date, and social security number. These are four main elements in identifying a person’s identity. If name and address don’t match with the birth date, or social security number doesn’t match with a person’s name, additional screening might be needed to positively identify the applicant’s identity before proceeding to the next step.
Pseudo PIIs include IP address, device ID, email, phone/mobile number, and geolocation. Today’s there are many popular solutions detecting whether IP address and device ID matches the intent of the applicant. That is to say, if someone is applying from outside of the United States but the applicant’s physical address is within the United States, there should be more scrutiny applied to the applicant.
In addition, the email address is another way to detect potential fraud. In my 2016 write-up “Email, the weapon against identity fraud“, we clearly demonstrate that the makeup of the applicant’s email address is paramount in detection fraudulent intent.
Today, we can triangulate all sorts of identity or pseudo-identity together to pierce through an applicant’s true intent. Does the set of PIIs supplied to their bank account, payroll company matches what’s on the applicant? Does geolocation match their work and home address? These are some of the tools our clients are using in detecting the true intent of their potential clients.
We are constantly on the lookout for new partners to benefit our clients and our fintech ecosystem. Please reach out to us if you want to be part of Alchemy’s toolset in identity verification, fraud detection, and credit risk.
We look forward to many years of partnership with IDology. Thank you.