Louisiana Banks Deploy Instant Electronic ID Verification Technology
Financial institutions and businesses across Louisiana will have an edge in detecting and stopping fraud and identity theft thanks to a set of products rolled out in May by Thinkstream Inc.
The new solutions will offer banks, businesses, attorneys and individuals instant electronic ID verification or driver's license validation, background checks, credit services and access to trial records. Six banks in Louisiana have signed on to pilot the Driver's License Validation product, which is being used by tellers and new account and loan representatives.
The solution is designed to strengthen banks' defenses against the biggest points of fraud -- when new accounts are opened or a transaction is attempted with a forged driver's license.
A transaction usually begins with a request for credentials or other form of identification; e.g. driver's license, state ID or military ID. Often, with no prior contact with the individual standing before them, a bank employee must make a split second decision on whether to accept or reject an ID based solely on its appearance. With no easy, quick way to verify the driver's license is valid or that the information printed on the card is fraudulent, the door is opened for a person to potentially cash a bad check or empty another's person bank account.
"The days of robbing a bank are not the best way to steal today for smart thugs," said Bobby Gaston of the Louisiana Sheriff's Association, which is backing the new technology. "Checks cashed with fake ID's is one way they're committing fraud, but stealing ones identity through hacking into computers is another -- needless to say bank fraud is a major problem in Louisiana and is increasing rapidly.”
The Thinkstream ID verification product offers bank personnel instant, electronic validation of a person's driver's license through a secure Web application or service, by reading the information from a card scanner or through direct integration into an existing banking application. After a person's driver's license number has been logged in or scanned, Thinkstream will run a query and instantly return the correct information, alerting bank personnel of suspected forgery.
"This technology offers the user instant ability to have as much knowledge of the individual they are facing -- I have total confidence in the software package Thinkstream has put together," he said.
In addition to the ID verification service, products that allow background and credit checks, and access to trial records will be available to businesses and individuals throughout the state and to the rest of the country by the end of the year, Thinkstream Inc. President and CEO Barry Bellue said.
"These products offer a new era, if you will, of ID fraud protection that will benefit businesses and their customers across multiple industries by enabling them to step up their security efforts to keep pace with these types of fraud schemes," he said.
"Cutting crime off at the start saves investigation costs and also frees up officers to work on other matters," Gaston said. "If we can get some financial returns for reducing fraud and identity theft, it will enable sheriff offices to be stronger financially.”