Knowledge Based Authentication (KBA) may be a good of verifying who a person is, but it has proven time and again to be very easy to compromise. In the modern age, KBA is a good way to irritate customers and leave them as victims of fraud. The good news is that there are various Knowledge Based Authentication alternatives that you can consider as a business.
One of the best KBA alternatives that you can use is behavior recognition. This is a pattern that a lot of credit card agencies employ. It involves using publicly available data to establish user patterns and looking for breaks with those patterns. Since customers have the tendency of falling into habits, a sudden break from those habits should create red flags in your system. It could be possible that your model is wrong or the change in behavior is as a result of exigent circumstances, checking out shifts in customer behavior can help warn of possible fraud.
Another knowledge based authentication alternative that you can use in your business is phone-limited access. The phone is one of those things that everybody has and tends to jealously guard. With the rise of mobile phones and the many services that offer number transfers, tying customer identity to phone numbers is a convenient way of verifying identity. When somebody calls in while using a phone number that is linked to the account, there is a good chance that you are speaking with the correct person. For this method to be effective, it has to be used in conjunction with other identity verification methods to counter possible software glitches.