Trulioo: 2021 Was the Year of Vigilance

It is no surprise that with the increase in online activity, we’ve simultaneously seen an increase in cyber fraud, says Zac Cohen, chief operating officer of Trulioo. That means businesses need to be more vigilant than ever, building robust verification into every touchpoint. Read his thoughts in the PYMNTS eBook, “In a Word: 50 Thought Leaders Sum Up 2021.”

The word that stands out when reflecting on 2021 is vigilance. The last year saw a continued acceleration of people and businesses moving online. Shifts that were made initially to comply with public health orders soon became the preferred method of interaction for many consumers. Why spend an afternoon at the grocery store when delivery options are now readily available? These shifts have been meaningful — on average, consumers have started transacting with six new brands for the first time during the last year, according to Trulioo’s 2021 fraud survey.

It is no surprise that with the increase in online activity, we’ve simultaneously seen an increase in cyber fraud. Many of the consumers who are new to online commerce are less savvy, often using weaker passwords and following fewer security steps — and are in turn more vulnerable to fraud. On top of this, poor or nonexistent identity checks in online retail or financial services can wreak havoc on people’s lives.

The surge in online activity has emboldened and inspired creativity among bad actors online. The current fraud climate has made it clear that no matter the industry, implementing a strong identity verification program is imperative to establish the root of trust that’s critical for our digital transactions. What’s more, 80% of people state that online sites have a responsibility to help reduce cybercrime through effective identity verification methods. Being vigilant about identity verification is crucial in today’s digital landscape. In order to foster trust online, individuals and businesses must prove that they are who they say they are.

Consumers have high expectations when it comes to their online safety. In fact, findings from a FICO report exploring COVID-induced digital transformation in financial services reveals that 62% of U.S. respondents expect to have to prove their identity when opening an account digitally, and 42% said they would expect the need to set up biometric identification.

Organizations should create seamless and secure onboarding experiences, taking into account that consumers want more choice and flexibility when opening new accounts, with people prioritizing security, data transparency and variety of authentication options. This will not only help keep fraudsters at bay, but will also be the basis for trusted customer relationships in the future.

In 2021, we saw rapid growth in demand for our identity verification solutions, both in emerging industries and in new markets around the world. Working with Fortune 500 companies and some of the world’s top financial institutions, payments providers, online marketplaces, and eCommerce and financial services providers, we’ve seen firsthand that organizations are taking identity verification seriously, and are working hard to protect their users.

A strong identity verification program is a requirement for any organization striving to ensure that users can transact with peers or brands safely and securely online. It is more clear now than ever that identity verification is the foundation of financial integrity.