Identity verification

Fifth Third Bank customers were swindled out of over $100,000, but not because the bank didn't have protection in place.

Social Security numbers are used to verify identity across the financial services industry, but their use is outdated and leaves consumers vulnerable to data breaches.

HSBC is the latest bank to be hit with this type of attack, in which hackers take stolen usernames and passwords from one site and attempt to reuse them to login to banks.

The breach may have occurred through a technique called "credential stuffing," in which hackers who have stolen passwords for other websites try them out on an online banking site.

Self-sovereign identity solutions are becoming increasingly common as credit unions move away from less secure authentication methods.

Australian credit unions can teach American CUs a thing or two about effective use of blockchain and know-your-customer strategies.

Jim DeBello will leave his post as CEO of digital capture and mobile identity company Mitek, one of a handful of high-level personnel moves at the company.

By intelligently applying friction, where the entry of a PIN or a swipe of the screen can be used to correlate against known data, we can better prove that the correct user made the transaction and avoid the costs and disruption associated with fraud and disputed claims, writes Zia Hayat, CEO of Callsign.

"Banks should be investing in innovation in this area or risk getting left behind," a fintech CEO warns.

The move from standard to real-time transactions adds another layer of complexity and creates further opportunities for fraudsters. Quicker transaction times increase the chances of fraudulent transactions going undetected, writes David Worthington, vice president of payments at Rambus.