Nowadays, businesses are shifting to digital platforms as customers are increasingly moving to online services, which perpetuates the use of an online payment system. This also gives rise to cyber fraud. Unauthorized individuals can steal the payment credentials of a legitimate individual and use them for illicit activities. So, businesses should know how to protect themselves from such crimes. It is reported that individuals or businesses subjected to credit card scams lost over $30 billion between 2020 and 2021. Thus, to safeguard themselves, businesses should implement Identity Verification solutions.
Defining ID Verification: Why is it Important?
ID verification is the process of affirming the authenticity of possible customers. This helps businesses ensure that their clients are who they claim they are. With this process, the likelihood of illicit activities such as identity theft and other cybercrime is greatly reduced. Additionally, ID verification also provides risk management solutions and helps determine the risk associated with liaising with prospective customers. Institutions such as law firms, hospitals, and banks mostly deal with sensitive information. Thus, they would benefit the most from identity verification services. There have been many cases of financial crimes in credit card companies and banks wherein a few individuals used fake government IDs. So, to avoid identity theft crimes, validation of identity is a must-have for businesses.
Benefits of Identity Verification Solutions
Businesses would greatly benefit from ID verification solutions. Firstly, verifying customers helps to avoid heavy penalties and creates a safe working environment for clients and businesses. Secondly, it allows businesses to preserve their reputation. For example, Airbnb has become immensely popular because it emphasizes the need to verify the identities of users. As a result, there is an ethical alliance of trust among hosts and guests. Secondly, a major benefit of authentication of ID is that it helps combat fraud. Risk-based models can help decipher which customers pose the risk of fraud. Lastly, identity authentication promises national compliance. If identification programs are misused, it will cause a breach of privacy laws of both federal and state. Many data privacy regulations such as face identification are applied to process sensitive data to avoid penalties. Identification practices make this process easier.
Affective Techniques of Online Global ID Verification
In addition to adopting identity verification services, it is also important for businesses to implement them effectively. This can be done via a range of techniques.
Biometric Identification: Certain biological features of customers can be used to verify them. Identification through biometrics has certain advantages. Using techniques such as face identification or fingerprint analysis diminishes the need for passwords. Additionally, these techniques are very secure as an individual’s DNA cannot easily be forged or stolen.
Multi-factor Authentication: In this technique, clients are required to provide at least two forms of identification, called verification factors, to obtain access to a system or program. Multi-factor authentication will then ask for a one-time password (OTP) every time you wish to log into the system. Mostly, OTPs are sent through emails or messages, however, in some cases, authentication apps can also be used such as Microsoft Authenticator. So, multi-factor systems usually reduce the chances of illicit movements and ensure quality identity verification services.
Document Verification: Identity verification by scanning documents can allow one to investigate several facets of a client’s legal documents. These documents can include a passport, a driving license, or bank-issued statements. These documents also contain a client’s basic personal information that is necessary for identification, for instance, names and residence. This data can be cross-checked from databases.
Online Verification: Human evaluation, biometric identifications, and AI-based methods are used to verify the authenticity of a client’s ID. Through online verification, clients would asked to present their ID card or picture to verify whether it matches the information in databases. It is also imperative that companies implement proper verification systems. In the finance sector, such as banking, verification would be required for account opening, money transfers, or loans. This would require companies to have proper regulations for digital identity verification for finance.
Conclusion
Therefore, with the increasing significance of KYC solutions today, it is important to have proper Identity verification solutions as it is a crucial part of KYC. Appropriate ID verifications would be beneficial for businesses as they would help prevent fraud and allow businesses to protect themselves. Identity verification methods like biometrics would ensure the authenticity of a client’s ID as one’s physical feature cannot be easily manipulated. Thus, it is important to have verified identities of customers to avoid fines, so such services will help businesses run smoothly.