Israeli identity verification firm AU10TIX has launched a know-your-business (KYB) solution.
“Increasingly rigorous regulatory demands are forcing businesses across all sectors to collect and analyze more data about the identities of their partners and vendors,” the company said in a Tuesday (Feb. 27) news release.
“Companies must also ensure that they are not working with unscrupulous businesses involved in identity theft, fraud, money laundering, terrorist financing or other crimes.”
However, AU10TIX argues, most KYB tools are limited, forcing companies to work with multiple vendors for important capabilities like know your customer (KYC) and serial fraud detection.
This combined KYB/KYC solution checks against 200+ jurisdictions and more than 1000 government registries in one automated workflow, letting businesses avoid lengthy searches and “potentially outdated databases,” the release said.
“Our customers have been requesting a comprehensive KYB solution because money laundering and fraud have become far too prevalent in the corporate world,” AU10TIX CEO Dan Yerushalmi said in the release.
His argument is borne out by research by PYMNTS Intelligence, which found, per a survey of 200 executives at the largest banks in the U.S., fraud increased for 43% of financial institutions (FIs) between 2022 and 2023, with the average cost of fraud jumping by 65% for FIs with assets of $5 billion or more.
Meanwhile, PYMNTS explored the changing authentication landscape recently in a conversation with Mike Storiale, vice president of innovation development at Synchrony, for the series “What’s Next in Payments: Authentication: What’s New and What’s Next?”
“Identity theft, phishing and data breaches have all become more prevalent,” he said. “So, more robust authentication has become crucial to ensuring that the person is the right person involved in a transaction, that they are who they claim to be.”
Traditionally, payment authentication has centered around three tenets: something the customer knows (passwords), something they have (cards or phones), and something they are (biometrics such as facial recognition).
However, the landscape is shifting rapidly, with multifactor authentication gaining popularity, and modern approaches, such as biometrics and tokenization, increasingly contrasting favorably against more traditional methods like card and phone verification.
“There’s been a lot of advancements in technology,” Storiale said. “We are trying to get to a point where we know the customer more deterministically as they move through their payment journeys. Customers expect personalization. They expect that we know them. And with fraud as an ever-present threat, we’ve got to get better at knowing who the customer is to avoid false positives and combat fraud at the exact same time. It’s a delicate balance.”