Better Identity Coalition supports banks and DMVs collaboration to fight identity fraud

Recent reports suggest that a group of major banks, including JPMorgan Chase, Wells Fargo and Bank of America, are interested in working with state DMVs to gain access to their databases to authenticate consumers and combat identity fraud.

The Better Identity Coalition wants the federal government to provide USD 200 million over five years as “seed funding” for DMV ID efforts. A cadre of leading banks and other organizations have formed the Better Identity Coalition to push for such a solution as well as a host of other pro-identity initiatives.

Better Identity Coalition focuses on ID fraud and mobile banking. State DMVs, for their part, are working toward the fulfillment of Real ID regulations which strengthen identity proofing and credential issuance processes. The appeal for banks working with the DMVs is that people seeking new or renewed licenses usually have to appear in person and bring supporting documentation.

Opening up a mobile banking account, by contrast, can often be done with only a scan of an applicant’s drivers license. Even if a person goes to a bank branch, tellers are typically less skilled and experienced at spotting fraudulent documents than are longtime DMV employees. Another layer of fraud prevention could be achieved if banks had access to DMV databases. And for their part, DMVs would receive fees from banks, money that could go toward system upgrades.