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Hypatia Research Publishes Customer Identity Authentication: Avoiding Identity Theft, Fraud & Risk
Checklist for Evaluation of (CIA) Software Providers: Two distinct – and possibly conflicting – motivations overshadow the discussion on customer identification authentication (CIA).
Two distinct – and possibly conflicting – motivations overshadow the discussion on customer identification authentication (CIA). On the one hand, organizations want to improve customer service, which means dealing with contact center queries quickly and efficiently. On the other, organizations want to improve risk management. That means limiting to as small a percentage as possible fraudulent attempts at credit card purchases, identify theft, prescription drug misuse, or other crimes. These two motivations overlap sometimes as well: organizations strive to assure customers that their call-center processes keep personal information safe and secure.
According to co-author and senior analyst Howard Baldwin, “Anytime an organization can remove a human being from a business process, it makes it faster and less expensive. Furthermore, there’s always a record of the transaction, and a verifiable voiceprint of who made the request. It’s like an automatic auditing system. With traditional contact center applications, there will be a record of a transaction, but it could be from someone with purloined information.”
Leslie Ament, (https://www.linkedin.com/
Moreover, Ament continued, "We also strongly recommend that authentication methods should be deployed consistently across channels and modes – customers don’t care that you’ve selected different tools for online e-commerce and contact center usage. Customers engage with brands as one entity, and that’s the face that should be presented to them.”
Hypatia Research surveyed more than 626 global practitioners and executives directly involved with governance, risk, compliance, security and identity authentication processes and decision-making on the following facets of their deployments. Our analysis of those that actually utilize, recommend, influence, hold budget or veto power over the purchase of customer identity authentication software provides contrarian insight into how and why large organizations:
-- Invest in CIA software solutions—and how much is budgeted through 2016
-- Measure productivity and effectiveness of CIA initiatives and how often?
-- Prioritize software selection criteria?
-- Prioritize specific CIA initiatives?
-- What percent of company revenues are committed to CIA, and when ROI is expected?
-- Evaluate certain vendors?
Our due diligence included a 1) vendor briefing, 2) product demonstration and 3) customer reference interviews. In certain cases, customer references were obtained without vendor involvement through our professional network.
Survey Respondent Profiles
Respondents operate primarily in Europe (41.5%) with healthy representation from Asia Pacific (32.4%), and North America (26.1%) regions. Among the 664 respondents, the organizations were divided among SMBs (8%) with revenues under $100 million, mid-market (34.6%) and large enterprises (57.5%) with $2 billion or more in revenues. More demographic information at: Customer Identity Authentication:
Industry analyst and market research firm Hypatia Research Group (http://store.hypatiaresearch.com/
For advisory, licensing (http://hypatiaresearch.com/
Zvi Ruder, SVP Operations & Intellectual Property Licensing
Hypatia Research Group
1 Knowledge factors ("things only the user knows"), such as passwords
2 Possession factors ("things only the user has"), such as ATM cards
3 Inherence factors ("things only the user is"), such as biometrics
Hypatia Research Group