Product Newsflash

Businesses are not protecting their customers from identity fraud

Identity fraud is one of the fastest growing forms of fraud around the world, and one of the easiest to perpetrate. It is relatively easy to acquire paper documents that claim to identify an individual uniquely, by making or purchasing forgeries, stealing originals or, merely applying for copies of them. It is also easy to find organisations willing to accept these documents as proof of identity.

Electronic authentication solves many problems for consumers and businesses as it removes the reliance on paper-based methods. It's quicker, more efficient and cost-effective but is still not in universal use.

Experian commissioned research in June 2007 to establish how seriously consumers and businesses view authentication, and to determine how electronic authentication is perceived against paper-based approaches. The results show that consumers are worried about the impact of identity fraud and are uncomfortable with paper-based processes. They displayed serious concerns over the security of identity documents, with 36% of respondents believing that it is easy to forge even a passport.

On the other hand, 71% of businesses seemed to recognise the significant challenge that identity fraud poses to their organisation, yet 49% still rely heavily on paper when it comes to authentication. They understand the benefits of electronic authentication over paper but when considering its adoption, they cite various recurring barriers - time, budget and concerns over ROI.

This not only leaves businesses exposed to fraudsters but means they could lose their customers' trust with significant damage to their brand value.

To download a copy of the report, visit:
http://www.qas.co.uk/paperchain

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