Out Of Wallet meaning

Out-of-Wallet, also known as OOW, refers to private data used for authentication to prevent identity theft. The authentication to prevent identity theft is used for telephone banking or internet banking. For telephone banking or internet banking, customers are asked typical questions that are easy for them to recall but very difficult for others to answer.

These questions are normal question and answer types or multiple-choice questions that are based on personal public records or credit history. The personal public records or credit history makes the answers to out-of-wallet questions obvious to the real customer but very hard for others. Answers that are true with respect to the out-of-wallet questions will grant the customer access. Access can be to requested information like viewing the account balance or access to change something in the account like e-mail or password.

Out of Wallet

Out Of Wallet Questions

Out-of-wallet questions are questions outside of the usual identification points. Usual identification points include account number, social security number (SNN), or date of birth, and are translated into questions. These questions can be anything from:

  • What is the name of the first school you attended?
  • What is the color of your first car?
  • What is the name of the hospital you were born in?
  • Out of these four addresses, which is not associated with your family?

Out-of-wallet questions do not rely on publicly available information but on personalized and targeted information. These personalized and targeted information are used by sophisticated challenge question systems. Sophisticated challenge question systems usually require customers to answer more than one question correctly and often include a red herring question. A red herring question is designed to trick that fraudster, but for the legitimate customer, this question is recognized as nonsensical.

Out Of Wallet Banking Questions

Out-of-wallet questions for banking and other financial institutions are needed in financial processes. These financial processes include credit card payments and digital wallet payments. Credit card payments and digital payments require strict measures to prevent identity theft and fraudulent activities.Fraudulent activities are becoming more advanced in hacking banking systems. Banking systems are continuously developing and improving their stringent practices to protect consumer information using out-of-wallet questions. Out-of-wallet questions act as another layer of security to verify the identity of the person who is trying to access the account.

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How Out Of Wallet Authentication Works?

Out-of-wallet authentication works starting from the account creation process. The account creation process requires customers to choose a number of security questions. These security questions are out-of-wallet questions. Out-of-wallet questions are filled with answers that the customers know by heart. These answers can be difficult to guess by other individuals or fraudsters.

Fraudsters can easily take control of accounts without out-of-wallet authentication. Out-of-wallet authentication is required in some financial transactions or account changes. These financial transactions or account changes will not push thru for incorrect answers to the out-of-wallet questions. Out-of-wallet questions act as digital locks for encrypted information until the customer unlocks them with their respective correct answers.

Out-of-wallet question and answer pairs are stored by business hosts in secured databases. These secured databases protect the information from hackers or fraudsters getting their hands over these out-of-wallet questions and answer pairs. The out-of-question and answer pairs are needed when customers change or renew their passwords or in other transactions that require them to prove their identity.

Does Experian Use Out Of Wallet Questions?

Yes, Experian uses out-of-wallet questions through Experian’s Knowledge IQSM. Experian’s Knowledge IQSM, powered by Precise ID®, allows businesses to authenticate their customers via noninvasive questions. Noninvasive questions can be easily answered by a legitimate customer with Experian’s Knowledge IQSM. Experian’s Knowledge IQSM uses a customized configuration that is designed to balance business needs with fraud-risk appetite.

Experian’s Knowledge IQSM Easy authenticator allows a seamless authentication. The seamless authentication does not compromise customer experiences. Customer experiences are given importance with Experian’s Knowledge IQSM Easy authenticator features such as:

  • Eight trusted data sources that provide 70 credit and noncredit-based questions in 16 categories and are easily answerable by customers.
  • Specific questions that are based on the business’s own data and customer base.
  • Multiple question-presentation configurations that provide greater flexibility for how questions are presented to customers.
  • Custom question text available for question presentations that suits the business’s needs.

Experian’s Knowledge IQSM Data sentinel keeps fraudsters from invading businesses while confidently authenticating their legitimate customers. Legitimate customers are successfully verified using Experian’s Knowledge IQSM Data sentinel features:

  • A layered, risk-based strategy that provides a multifaceted authentication method that integrates a risk-based score, device intelligence, and questions to authenticate customers confidently and quickly.
  • Variety of data sources that are used to fight compromised consumer information and diminish the impact of fraudsters using stolen information.
  • A high configuration that addresses business needs and mitigates fraudsters from accessing Knowledge IQSM to learn question-and-answer options.
  • Fraud ShieldSM indicators and specific questions that can be used to override a Knowledge IQSM  authentication decision.

Experian’s Knowledge IQSM Automation engine allows businesses to verify their customers’ identities systematically and reduce operational expenses from manual authentication. This includes:

  • A consultative approach through performance monitoring and analysis that optimizes an individual Knowledge IQSM configuration.
  • An exceptional flexibility that allows businesses to tailor Knowledge IQSM to meet their business needs.
  • A champion or challenger strategy that allows businesses to test configuration changes to optimize Knowledge IQSM and satisfy their business goals.
  • A breadth of data and sources that provides more questions and question types to ensure the usage of automated authentication for businesses.
  • An integration into businesses’ automated call management service or interactive voice response platform that removes the dependency on call center agents and reduces operational expenses.

Experian’s Knowledge IQSM Compliance safeguard allows businesses to authenticate their customers quickly and easily while satisfying regulatory compliance obligations. This includes:

  • Satisfying the Fair and Accurate Credit Transactions Act (FACTA) Red Flags Rule, USA Patriot Act Customer Identification, and Know Your Customer Requirements
  • Authenticating their customers while ensuring that fraudsters are not accessing their businesses.

Out Of Wallet Questions To Verify Identity

The out-of-wallet questions to verify identity are the best types of identity authentication methods in the financial and banking industries. The financial and banking industries are having challenges in identifying their customers when they are not seen in their banks or offices without out-of-wallet questions. Out-of-wallet questions provide a non-intrusive method for customer authentication. Customer authentication is required to make sure that the real customer is the one accessing the account and not a fraudster. A fraudster will have difficulty answering the out-of-wallet questions since these questions are exclusive to the legitimate customer.

Legitimate customers can be verified easily and conveniently using out-of-wallet questions. Out-of-wallet questions are based on several personal information like memorable events and places, family names, and education or work information. These several personal information are chosen by customers upon account registration.

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Out Of Wallet Example Questions

Out-of-wallet question examples are classified into eight categories. These eight categories are presented with some sample questions:

  • Relatives’ names
    • What is your mother’s maiden name?
    • What was your childhood nickname?
    • What is your oldest cousin’s first and last name?
    • What is your mother’s father’s first name?
    • What is your father’s middle name?
  • Non-relatives’ names
    • What is your current best friend’s name?
    • What is the name of your favorite high school teacher?
    • What is the name of the first high school you attended?
    • What is the street name of your work or office located?
    • What is the name of your hometown?
  • Addresses
    • What city did your parents meet?
    • What city we you born in?
    • Where did you meet your spouse?
    • Where did you vacation last year?
    • What was your favorite place to visit as a child?
  • Dates
    • In what year was your mother born?
    • What month and day is your anniversary?
    • What year did you graduate from high school?
    • What is your oldest sibling’s birthday month and year?
    • What time of the day were you born?
  • Education-related
    • What was the name of your elementary school?
    • Where did you go to high school?
    • Where did you go to college?
    • What is the last name of your third-grade teacher?
    • What was the name of your elementary school?
  • Favorites
    • What is your favorite book?
    • What is the name of your favorite pet?
    • Where is your favorite place to vacation?
    • What is your favorite food?
  • Firsts
    • Who was your first employer?
    • What is the name of your first pet?
    • What was the first company you worked for?
    • Where were you when you had your first kiss?
    • What was the first concert you attended?
  • Miscellaneous
    • What is your library card number?
    • What are the last five digits of your driver's license number?
    • What are the last five digits of your credit card?
    • What was your childhood phone number, including the area code?

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