Leading investment management firm Vanguard has implemented Verid's Knowledge Based Authentication (KBA) platform to verify identities when customers open certain types of new accounts online.
The new Verid security process will help reduce fraud risk by asking a series of multiple-choice questions that are unique to each individual. Vanguard, one of the world's largest investment management firms, manages more than $1 trillion in US mutual fund assets.
"Knowledge Based Authentication significantly raises our confidence about an individual's identity," said Vanguard Principal Tim Thornton. "The fact that it works in both our online and phone channels is a major advantage. We plan to extend the use of Verid's solution to reduce fraud risk and improve our customer experience with the real-time Verid technology."
Verid's industry leading Knowledge Based Authentication (KBA) platform is used by 12 of the top 20 financial service providers, 4 of the top 6 telecom/wireless providers and 3 of the top 10 retailers.
"Vanguard recognizes KBA helps protect people against identity theft, whether they are current customers or not," said Verid CEO Kevin Watson. "Security conscious companies like Vanguard are turning to KBA because it balances convenience, ease of mass deployment and strong security. Research shows consumers prefer KBA over other methods of authentication."