Identity Theft Protection for Banks in Peru: A Growing Concern

In recent years, identity theft attempts have become a significant threat to companies in various sectors in Peru. According to data from Sovos, a technology company that provides solutions for companies, identity theft attempts represent 10% of transactions in companies that use their services.

The Rise of Identity Theft Attempts

The number of identity theft attempts has been on the rise, with RENIEC (National Registry of Identification and Civil Status) reporting a total of 923 blocked identity theft attempts from 2020 to date. These cases are often linked to the use of information from deceased people to process documents.

“Criminals take advantage of vulnerabilities in the technologies used by companies, whether new or legacy, to carry out these attacks,” explains Felipe Sánchez, Verification Product Manager at Sovos. “In Peru, identity theft attempts through the use of altered documents represent 10% of digital transactions of companies that use our services, which we manage to detect and stop with our systems.”

Digital Identity Verification: A Key Solution

One of the most effective technologies for digital identity verification is “face onboarding,” which requires a selfie and compares biometric data on the identity document. This method uses five pillars of security in fraud prevention:

Fake ID: Detects the authenticity of identity documents by searching for specific characteristics in the image.
Liveness Detection: Ensures that the person behind the camera is real, using computer vision and artificial intelligence to prevent recording or masking.
Denial lists: Control people involved in previous fraud through facial or identity document recognition.
Integration with government agencies: Validate the validity and authenticity of documents through government records.
One face — one identity: Associate a face with a single identity to avoid impersonations.

The Financial Industry Takes the Lead

The financial industry is leading the way in implementing digital identity verification solutions, using biometrics for operations such as opening bank accounts and granting loans remotely. Some banks have also implemented biometric solutions to authenticate their clients at ATMs and mobile applications, improving the security of financial transactions.

Reducing Fraud with Digital Identity Verification

Fraud reduction in organizations that effectively implement integrated digital identity verification mechanisms can range from 70% to 80%, depending on the industry, the type of verification used, and the quality of the implementation. Another important benefit of biometrics is its versatility and applicability in a wide range of scenarios and devices.

Mitigating the Risk of Identity Theft

To mitigate the risk of identity theft, companies should hire specialized identity verification services and be aware of the latest technologies and regulations, such as the ISO 30107–3 standard, which establishes defense methods against identity theft spoofing. Additionally, raising awareness among teams is crucial by following these recommendations:

Promote knowledge about risk: To avoid being a victim of identity theft, companies should include it in their risk matrix to manage it properly and define the controls that allow them to mitigate its probability of occurrence or its impact.
Verify the source: Always verify the legitimacy of emails, messages, or phone calls before providing personal or financial information.
Have several layers of security: It is essential to implement several complementary security measures to help reduce the chances that an attack will go undetected.

Conclusion

Phishing is a complex challenge that requires comprehensive and up-to-date solutions. With a combination of advanced technology and good security practices, Peruvian companies can protect themselves and maintain the trust of their customers in an increasingly challenging digital environment.