Heywood Pension Tech
We live in an increasingly digital world and the volume of threats we face has grown and become ever more creative. The pensions industry is embracing a growing expectation of online engagement from members, which is a great step forward in member engagement and one that brings benefits to all concerned. The risks that digital engagement brings needs to be recognised and schemes need to consider what can be done to ensure they keep themselves and their members safe.
The last few years have seen the increased use of two-factor authentication (2FA) and multi-factor authentication (MFA), which require not only correct login credentials but the ability to receive and provide a unique code that is sent via an email or text message.
Digital Identity Verification
A far more effective security step is now available, in the form of digital identity verification. At the most basic level, this might involve uploading a scan or photo of various identity documents, but a far stronger method is biometric identification. Put simply, take a selfie and submit it with a photo of your passport and driving license.
Technology has advanced to the point where it is quick, simple and low-cost to take a member through a simple journey where a form of photo ID can be captured, validated as genuine and compared to a living image of their face.
The pensions industry has often assumed its membership would not want to engage digitally. That assumption is on the whole, incorrect.
Many people have been using facial recognition to unlock their phones for years and the pandemic made relying on digital face-to-face communications the norm and widely accepted.
Biometric Identity Verification
Biometric identity verification also provides many fraud checks, along with tests against many registers such as sanctions and politically exposed person lists. It can spot where a person’s location does not fit what would be expected, identify any suspicious behaviour and with consent, capture additional information that can be used to strengthen identity confidence for future interactions.
Identity verification is a vital element of the Pensions Dashboards and should be used in all situations where a member’s security needs to be protected.
Handling Dashboards partial matches, accessing an online portal and receiving or sending money or information are all areas where there is risk. Implementing robust digital identity verification is a positive step all schemes can and should take.
Heywood Analytics provide a range of efficient and reliable data analysis, cleaning and automation services. We put you in control of your information and help you focus on what you do best - delivering positive member experiences. To learn more about Heywood Analytics, please contact us.
David Rich is Heywood’s Head of Data Services. He has contributed to many data and regulatory initiatives, including the DWP Single-tier State Pension, Automatic Enrolment and the Dormant Assets Commission.
David also works with PASA on various panels, including the Dashboard Working Group.
