With the advancement in technology, scammers are also revising their techniques to carry out illicit activities. Be it a bank or a healthcare platform, every sector is being badly destroyed by synthetic identity fraud. This has shifted all the online platforms to robust identity verification services.
Identity verification is performed to ensure that all individuals who join the platform are who they claim they are. By acquiring, confirming, and storing user IDs, companies can reduce the risk of online fraud. The lack of robust identity verification processes leads to significant financial loss and puts a firm’s reputation at risk.
From Manual to Digital Identity Authentication
Banks and financial entities used to authenticate onboarding individuals through their documents and fingerprints. Conventional verification methods are time-consuming and inefficient, and they necessitate the use of more human resources. Protecting businesses from criminal actors on digital platforms is a big challenge. Be it a bank or an online marketplace, digital issues require digital solutions, which are already available in a variety of online validation.
With the emergence of digitization, it’s become important to utilize AI and machine learning techniques, as well as their algorithms, to streamline identity verification. The real-time identity validation of every onboarding individual is ensured by integrating technology-based APIs with digital sites. Identity verification is done during the period of account creation and sign-in in order to ensure that no illegal or questionable identities enter the genuine system.
What Has Made Identity Verification Services a Pressing Need?
Cybercrimes on small and midsize enterprises pose a significant danger of fraud. These companies typically limit the reach of their services or must cater to a huge number of people. With its malicious behaviors, a bad actor might sabotage the smooth operation of a corporation. The identity verification industry is dominated by large businesses. However, due to financial restraints, SMEs are unable to integrate digital solutions for fraud protection. Despite the fact that KYC and AML standards are required by law, small firms are increasingly integrating an identity verification service into their systems to automatically verify every onboarding individual without impacting the user experience.
Most internet users who do not consider warning signals seriously or who do not report unusual internet activity indications on a regular basis are vulnerable to identity theft. Identity theft is most likely to hit children and the elderly. Their identities are attractive to criminals because they have never been exploited in some kind of a criminal record and could be used for malicious reasons. Similarly, online or email phishing attempts to target the identity of the elderly. Due to their age, their identities are trusted by fraudsters to easily commit. illicit activities.
Credit Card Frauds
In the domain of identity theft scams, credit or debit card frauds are unchallenged. A huge number of online customers claim credit card accounts are being opened using their personal details. Almost any month, criminals make millions of dollars by stealing clients’ financial data, such as credit card numbers. Credit card fraud is actually more common among new accounts.
Account takeover Frauds
Account takeover scams increased by 79% in 2018 as per Shufti Pro news. Internet users’ accounts are hijacked by fraudsters using cutting-edge technology. They adopt credentials stuffing tactics using malicious scripts, whereby a computerized script takes a set of usernames and their passwords to extract the correct credentials that the user has created an account with. Many more scams replicate the account takeover scheme, for example, stolen identity data is utilized in a variety of fraudulent practices, including money laundering and terrorism funding.
How Does Digital ID Verification Help?
Unauthorized access is the source of a number of online scams. Biometrics identity verification system helps prevent these scams by confirming every person who wants to have an access to the corporate sector. Verifying identity appears to be a lengthy procedure, but what if it only takes seconds?
A comprehensive online identity theft protection solution recognizes users in real-time without disrupting the user’s experience. It assists in the verification of information. Identity is validated through document verification, which uses OCR technology to capture information from documents. Biometric authentication, which uses facial recognition software to identify users in seconds, is also used. These solutions are being integrated by both small and large businesses to protect their platforms against unauthorized access.
Identity verification is a great strategy for preventing cybercrimes; in certain countries, it is a legal necessity to secure client data security and privacy. CCPA and GDPR are data privacy legislation designed to keep personal details secure from bad actors. Furthermore, KYC, AML, and CDD regulations are driving the expansion of the online identity verification industry.
The identity of an individual is checked to ensure that the onboarding clients are not involved in any criminal behavior. Client screening reduces the risk of enrolling a high-risk customer so that businesses can carry out their activities more efficiently and with greater satisfaction. For this objective, many firms are accepting global investments like Shufti Pro funding, just done by the Updata Partners