With the growth of digital platforms and online transactions, businesses are seeking dependable sources and individuals to support their operations and enhance the consumer experience. While digitization benefits customers, firms must also deploy appropriate security measures. Businesses are attempting to improve their security by implementing online identity verification services.
Digital business platforms, like traditional businesses, have hazards, since fraudsters target any system that facilitates money transfers and transactions. After the Covid-19 epidemic altered how organizations work, meetings and client onboarding processes are now performed via digital platforms. This necessitates the establishment of an identity verification service to deter fraudsters from gaining access to digital platforms.
Concerns About Identity Fraud Growing
Fraudsters’ sophisticated technology-driven strategies have increased their sophistication, generating risks for businesses and financial institutions. Due to the absence of robust id card verification solutions, businesses are exposed to identity fraud. For example, when a customer gets onboarded through a video conference via a digital platform, they may not be who they claim to be. As a result, criminals might pose as respectable individuals and obtain important information.
The online identity verification service is built on a solid foundation of security. Verifying clients’ identities have aided in preventing fraud involving social security numbers and government-issued identification cards for centuries. Businesses are still improving their security procedures as a result of the growing adoption of digital platforms. Due to identity theft, a business that disregards this security check may get implicated in money laundering and other financial crimes. Although the manual identification verification process with a verification officer cannot be done on digital platforms, online ID verification alternatives are now available.
Numerous sad situations have been documented in which businesses have gone bankrupt or lost client trust as a result of identity theft-related activities. Along with the money lost to criminal activity, there are also fees associated with KYC compliance. KYC (know your customer) and AML (anti-money laundering) compliance regulations require firms to establish adequate steps to authenticate their customers and conduct background checks.
Cybercrime on Digital Platforms
Due to poor verification processes, organizations’ digital platforms are experiencing identity fraud. Fraudsters use forged documents to pose as legitimate clients, and sometimes existing customers are careless with their personal information.
Once criminals have crucial client information, their transactions appear legal and hence arouse no suspicion. Another method is to use stolen identification cards or social security numbers to get access.
False Identity Documents
Stolen identification documents are used for illicit operations such as money laundering and the registration of fictitious businesses. Fake identity documents are frequently constructed by combining made-up information with actual information from another person’s identification documents. These forged identity cards are a frequently utilized technique for committing criminal acts without being apprehended.
Identity Verification Services
The purpose of the online identity verification service is to empower and secure digital business platforms. Identity fraud begins with deception and system manipulation, and this is the loophole that must be closed. Businesses use online identity verification services to combat fraud and safeguard their customers’ money. Additionally, these services give the necessary tools to ensure successful KYC compliance.
Biometric Recognition
Facial biometric recognition is extremely successful as a first stage of the ID card verification solution. After installing the appropriate APIs, the built-in features that utilize artificial intelligence perform an exhaustive search for face traits. Thus, it is possible to differentiate between a genuine person’s face and one that has been altered/modified using photoshop or other deep fake software.
Biometric scanners digitize the unique traits of an individual’s face. The individual’s identity is then validated by comparing the captured image to the photo on their identification documents. Due to the ease with which biometric facial recognition can be used, it has become a popular verification method among clients. It is used in both smartphones and offices.
Document Verification
While biometric facial verification provides flawless security for online identity verification services, it also incorporates additional procedures. Document verification is a procedure that verifies a customer’s identity using their government records. End customers are asked to upload scanned images of their identification documents, driver’s licenses, and utility bills while using an online identity verification service.
Final Remarks
To summarise, identity verification services have become a critical requirement for digital business platforms in an environment where identity fraud is on the rise. These new identity validation solutions utilize a variety of sophisticated technologies based on artificial intelligence to identify forgeries in documents and manipulated photos. Businesses must adopt such services to prevent prevailing frauds and thefts. Combating the rise in digital fraud is essential to comply with changing KYC regulations.
