Financial institution Principal leads the way in implementing biometric verification methods to combat web-based deceit and deceit.

In a significant stride towards enhancing digital security, Principal Financial Group has successfully implemented a digital ID verification authentication program that has delivered positive results. This innovative initiative has led to a reduction in fraudulent activities, improved customer success, and a decrease in user abandonment.

The success of this program can be attributed to strong leadership and clear communication, as acknowledged by Bergen, a key figure at Principal Financial Group. The company's customer experience team played an instrumental role in the early stages, designing an intuitive biometric authentication process using journey mapping to identify and rectify any potential issues before launch.

During deployment, Principal Financial Group struck a balance between security and customer expectations. They gathered customer feedback during the rollout to spot issues early and make real-time adjustments. This proactive approach resulted in significant improvements in user success rates, with a rise from 38% to 48%.

The new program has also been recognised by a notable financial or technology organisation, earning Principal Financial Group a 2025 award for its biometric authentication system. Although the exact awarding body and detailed reasons are not specified, the recognition underscores the innovation in secure digital identity verification and enhanced client security.

The culprit that the new program replaced was knowledge-based authentication (KBA), a common method for proving identity that asks users to answer personal questions about former home addresses or car models. Principal Financial Group partnered with Onfido, an Entrust company, to replace KBA with a digital ID verification authentication platform focusing on facial recognition.

The new program has also been met with a rise in account takeover attempts, according to a recent study, with 61% of respondents reporting more such attempts. However, the new biometric authentication system has proven effective, with fraudulent account registrations virtually eliminated.

Communication with customers played a big role in the success of the biometric authentication project. Principal employees were equipped with clear messaging to guide customers not familiar with biometric facial recognition. This approach has made the transition smooth and hassle-free for the majority of customers.

The biometric authentication project by Principal Financial Group is a prime example of how financial institutions can move past outdated authentication methods to keep customers safe from fraud. This project also highlights the importance of adopting an agile mindset, as Principal successfully implemented the program in just five months.

However, it's not just Principal Financial Group that has experienced an increase in fraudulent activities. According to LIMRA's 2024 Financial Crimes and Fraud Prevention Benchmarking Study, 50% of respondents saw an increase in fraud targeting seniors and vulnerable adults. This underscores the need for continued efforts in enhancing digital security across the industry.

In conclusion, Principal Financial Group's biometric authentication project is a significant step forward in the fight against digital fraud. By replacing outdated methods with innovative solutions, the company is setting a positive example for the industry and ensuring the safety of its customers.

Financial institution Principal leads the way in implementing biometric verification methods to combat web-based deceit and deceit.