Online fraud remains a major problem, and some experts predict that it will only get worse. Fortunately, there are also technologies and tactics that seem to offer some hope for improvement.

Most incidences of fraud stem from the inability to associate a particular transaction with an authorized, legitimate identity. Criminals who engage in fraud are able to make use of credit card numbers and other sensitive information because no system intervenes to detect the inappropriateness of their efforts.

At least one company has proposed a solution to this problem that could make a real difference. As those who read more about Jumio and its identity verification technology will see, fraud does not have to be taken for granted.

A Better Way to Verify That a Transaction or New Account is Appropriate and Authorized

Merely possessing a credit card account number should never, in and of itself, be taken as evidence of being authorized to make charges. The same goes for other kinds of sensitive transactions, where a single piece of easily transferable information should not be equated to definite authorization.

Card issuers and others have long tried to build more security into their systems by requiring additional identifying information. Unfortunately, details like billing addresses and even dates of birth are often even easier for criminals to discover than account numbers themselves.

Some new technology takes things a step further and makes life much more difficult for criminals. By allowing smartphones to recognize valid forms of physical identification like driver’s licenses and passports, it makes fraud a lot less likely.

The Future Might Just be One Where Fraud is a Lot Less Common

While there are still some wrinkles to be worked out, this approach is already proving to be a promising one. Instead of merely asking for a billing zip code or another easily acquirable piece of information, the party on the other end of a sensitive transaction can demand that a much more significant hurdle be cleared.

Over time, technologies like this one could help to greatly reduce the incidence of fraud. That will benefit both the banks and merchants that suffer from it less and the consumers who see new opportunities open up as a result.