A recent report from Verizon reveals that the use of stolen credentials was the leading threat for Internet users in 2013. According to London-based Veridu, new ways of authenticating potential customers can dramatically increase the revenue of online merchants.
London, June 13th 2014: “Just because someone enters correct credit card information on a website doesn’t necessarily mean that the person is the rightful owner of the card. All online retailers have experienced that. The same holds true for various market places that rely on trust between users. They all need other ways of verifying the identity of the person on the other end,” says Rasmus Groth, CEO of Veridu.
In trying to solve this problem, industry leaders like Google and Facebook have introduced two-factor authentication as an extra layer of security, thereby making identity fraud much more difficult. Two-factor authentication requires users to verify their credentials with a mobile phone, making it exponentially more difficult to impersonate someone else or hack an account.
While Two-factor authentication works in some respects, It kills conversion rates for merchants who usually don't even ask users to log in. Adding extra barriers to selling products turns legitimate customers away, but has become a necessary evil for retailers in the absence of a better solution.
Online footprint reveals true identity
Among other startups Veridu instead proposes to stop making transactions harder — both financial and peer-to-peer — by adding in more verification methods, but instead think outside of the box and look at what can’t be faked: their online footprint.
“The current method is that unbeknownst to them, users are identified in the background based on the shopping cart form, their credit card data, as well as being run through risk engines. The problem is that it’s a very poor way of identifying people. Teenagers, the migrant workforce, and the underbanked are all groups of people with poor or no public data registry. What’s even worse from a consumer’s point of view, is that those background checks create a whole market of files on users that they have no control over,” says Rasmus Groth.
Instead Veridu wants users to be in control of their online ID. By providing a low-barrier, consent driven identity platform, the startup enables merchants to more accurately identify their risky accounts and users to better protect their data. According to Groth, this leads to an increase in sales, as more users can be verified and subsequent sales processed for a much lower price.
“Better and cheaper verification and authentication of the risky customers will enable less fraud and more sales. We want to enable businesses to expand their markets by identifying users reliably, using their unique online footprint. Online transactions and identity fraud are both growing rapidly and online merchants need the tools to enter new markets and segments safely,” says Rasmus Groth.
Verizon’s 2014 Data Breach Investigations Report
For further information please contact:
Rasmus Groth, Veridu CEO at email@example.com or +45 26 22 86 41
HOW IT WORKS
- The user grants Veridu access to various online services
- Veridu analyses the data and spits out the likeliness that the user is truthful about their identity
- To ensure that the user granting access is the owner, Veridu offers 2f authentication and One-Time-Passwords
- The user is in control of what data can be accessed, what data is given to the merchant.
Veridu provides an assessment of a user’s online behaviour, or footprint, to instantly and painlessly prove a user is real and their data matches that supplied. Rather than make the user jump through multiple hoops, Veridu’s technology provides an instant score of trustworthiness, with only a couple of clicks from the user.
Veridu is the most accurate, reliable and trustworthy tool to quickly and efficiently verify the identity of users in order to eliminate fraud and unwanted user behavior. Veridu provides both Single Sign On plugins and more comprehensive authentication tools to give the highest level of protection, with the simplest possible process for both businesses and end users. Founded in 2012, Veridu is headquartered in London with offices in Copenhagen, Denmark. For more information visit www.veridu.com or @veriduHQ