Determining whether someone runs a reputable organization or a fraudulent operation isn’t always easy. How can you tell who your company really works with, and how can you vet them to maintain call authentication standards?
Verifiable Legal Entity Identifier (vLEI) from the Global Legal Entity Identifier Foundation (GLEIF) could offer the solution you need to vet clients.
What Is GLEIF?
The Financial Stability Board founded GLEIF in 2014 to implement the Legal Entity Identifier (LEI). The organization oversees a network of partners to give organizations access to accurate information about legal entities all over the world. If an organization approaches you, GLEIF can help you determine whether you’re interested in working with them.
Originally, GLEIF existed to verify the identities of entities operating within the derivatives market. Today, it can verify the identities of organizations operating in diverse industries.
What Is vLEI?
A conventional LEI helps solve issues when verifying an organization’s identity. It has some limitations, though. A vLEI overcomes many of those limitations by:
- Creating unique 20-digit LEI codes for each organization.
- Improving accuracy by relying on blockchains and distributed ledgers on decentralized networks.
- Offering tamper-resistant, digitally signed credentials.
- Recruiting multiple groups to verify identities and information.
- Unifying all ledger-based ecosystems that use vLEI.
With vLEI, you know who you’re doing business with because you can verify identities through an incorruptible, unalterable ledger that frequently updates to give users the latest information.
vLEI’s role in call authentication
LEI and vLEI have the potential to improve call authentication conducted by the STIR/SHAKEN framework. TransNexus identifies several use cases showing how vLEI could add value to call authentication. They include:
- Vetting STI certificate applicants.
- Verifying SPC tokens.
- Verifying the numbers of applicants looking for SPC CA tokens.
Overall, vLEI adds a layer of authentication that could help standardize formats and improve STIR/SHAKEN accuracy at every level.
Why Is Vetting Clients Important?
Why should your business vet clients before giving them access to your software solutions?
Bad actors using your software solutions and tools could tarnish your business reputation. It reflects poorly on your business’s values and puts you at risk of violating compliance standards. You might make a little more money in the short term, but you run the risk of getting fined and losing long-term clients.
Abide by compliance regulations
The FCC has started enforcing robocall restrictions much more aggressively. The agency even targets service providers that don’t prevent clients from sending robocalls over their networks. Illegal activity could do more than lead to TCPA fines for your business. Service providers could get removed from the Robocall Mitigation Database (RMD). Once that happens, service providers are effectively blocked from using US networks.
Ensure clients align with company values
Associating with bad actors that misuse your software could tarnish your company’s reputation. As a result, you could lose some of your top clients. A damaged reputation could also make it much harder for you to attract more users in the future. Brands trying to protect their reputations simply don’t want to associate with companies that have negative reputations.
Make sure a potential client aligns with your company’s values before you give them access to your software or tools.
You can use vLEI to verify some information about potential clients. It also helps to research them online, discuss your values and expectations, and ask for references.
There are also some signs that likely point to dishonesty. For example, it’s risky to trust a contact that gives you a generic email address from a service like Gmail or Yahoo!. You want to see professional email addresses that come from legitimate businesses.
Prevent bad actors from accessing your software
Everyone working in the telecom industry should aim to eliminate scammers. They undermine the efforts of legitimate organizations that want to connect with their customers and leads.
Software companies building tools that help legitimate organizations navigate the STIR/SHAKEN landscape must pay close attention to who uses their products. If scammers have access to phone number reputation management solutions, they could use them nefariously to bypass STIR/SHAKEN protocols, spoof numbers, and take advantage of consumers.
It’s in everyone’s best interest to stop these bad actors. If that isn’t convincing enough, consider that regulators can fine your business and hold you responsible for facilitating illegal behavior.
Business Verification Is Essential
Consumers have lost trust in calls from unknown numbers. More than 75% of people say they’re more willing to answer calls that display organization names and logos. Still, the telecom industry has a lot of work to do before the average person feels comfortable answering calls.
You can help build trust by verifying business identities when onboarding customers. vLEI can play an essential role in your verification process. Ultimately, you need to set standards, ensure your clients meet those standards, and deny relationships with organizations that don’t meet those standards. Expect these steps to become increasingly important as the FCC tightens regulations and technology makes verification easier than ever.