Converus says IdentityDetect can detect a false identity within minutes. It’s the first technology that verifies if the person is who he or she purports to be by analyzing how the person reacts while answering questions.
LEHI, Utah – July 27, 2018 –A new patent-pending identity verification technology could potentially save the financial services industry millions of dollars by reducing errors in verifying a customer’s identity. The new technology, IdentityDetect by Converus, adds an advanced security layer for helping expose false identities and unauthorized transactions.
According to the Bureau of Justice Statistics, more than 17 million persons, or about 7 percent of U.S. residents age 16 or older, were identity theft victims in 2014. This is due in part to thieves’ ability to hack the current security steps used by financial institutions to verify a customer’s identity. For onboarding new customers, those steps include verifying government-issued identification, conducting a background check, or asking unexpected knowledge questions based on a person’s past financial activity.
Converus President and CEO Todd Mickelsen says IdentityDetect is the first technology that verifies if the person is who he or she purports to be by analyzing how the person reacts while answering questions — not just whether questions are answered correctly.
“IdentityDetect detects fake identities within a minute by analyzing variations in the motor nervous system responses of the examinee,” said Mickelsen. “It’s clearly a game-changer in the identity verification industry — especially because it can save the industry millions of dollars by not only correctly verifying a customer’s identity early on during the onboarding process, but also by greatly reducing any error in verifying a customer’s identity. Plus, it seamlessly fits into a financial firm’s existing systems.”
Mickelsen says being able to confirm the person’s identity enables the financial services provider to couple the confirmation with a biometric, such as facial recognition, fingerprint or retina scan. This combined information can then be hashed into a database or master ledger such as a blockchain where future identity verification can be done exclusively with the biometric.
“The IdentityDetect score, when combined with the biometric, is immutable when stored in a blockchain,” said Mickelsen. “This gives financial institutions 100 percent assurance the biometric is not perpetuating a false identity.”
Research shows between 75-85 percent of all Know Your Customer (KYC) alerts are due to incorrectly verifying a customer’s identity, also known as afalse positive.
“Every false positive must be investigated. A simple investigation may cost the bank up to $50,” said Mickelsen. “Multiply that times the hundreds of thousands or millions of false positives annually and the cost to financial institutionsis staggering.”
Lab studiesshow IdentityDetect is90 percent accurate. Mickelsensays if IdentityDetectreduces the number of false positives by 80 percent, then only 15 to 17 percent of all KYC alerts would be false positives, saving the financial institutions both time and money.
Converus is currently working with several financial institution vendors to implementIdentityDetect. The message to financial institutions is twofold: First, be certain that your new customer being onboarded or requesting a transaction authorization is really who he or she claims to be. Second, significantly reduce your false positives.
A recent Thomson Reuters survey revealed financial firms’ average costs to meet their compliance obligations with KYC and Customer Due Diligence (CDD) are $60 million. However, some are spending up to $500 million. A recent Forbes article, “Banks Need New Approaches In Complying With Financial Crimes Regulations” cites a WealthInsight report that estimates global anti-money laundering (AML) spending will exceed $8 billion in 2017, up 36 percent from 2013.
A common solution for combatting AML is subjecting new customers and current customers requesting a transaction to unexpected questions, also known as dynamic-knowledge or out-of-wallet questions. IdentityDetect adds a kinematic analysis to those unexpected questions. Kinematicbehavior changes when a deceptive person reacts to unexpected knowledge questions. This includes changes in response time, mouse clicks, mouse movements, and keyboard or keystroke dynamics.
In addition to financial institutions, IdentityDetect can be used by government agencies to verify identities of job applicants, contractors or foreign nationals. It can also be used to verify travelers — especially those who may have lost their ID while on vacation.
For more information, visit www.converus.com.
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Converus provides scientifically validated credibility assessment technologies. EyeDetect® detects deception at 86-90% accuracy in 15-30 minutes by analyzing eye and other behaviors. IdentityDetect® detects falsified identities at 91% accuracy in about 1-3 minutes by analyzing subtle variations in the motor nervous system responses. These technologies help protect countries, corporations and communities from corruption, crime and threats. Converus is headquartered in Lehi, Utah, USA. Visit: www.converus.com
Press Contact: Jeff Pizzino, APR