Identity theft and identification techniques underpin the whole enterprise that is FinTech. Our friends at UKTechNews report the latest in the major types of identity theft and fraud, their impact across industry. Later on in the article, biometric identity screening is discussed as a useful technique to mitigate identity fraud.
The Most Common Categories of Identity Theft
Biometric Identity Screening
No system is foolproof but we should aim to reduce most types of identity fraud. A Biometric Identity Screening solution should capture several real-time snapshots of the user and compare video to the photo in the Identity Document. To prevent a fraudster from downloading photos from social media to hold in front of a webcam, there must be a “Liveness” check, where users complete a series of actions, such as looking left or right, to differentiate a real person from a photograph.
Historical Performance And IFISA Process Guide
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.