As the Aite-Novarica Group’s report found, 47% of respondents reported an increase in loss from $502.5 to $712.4 because of identity theft. This makes it evident that criminals are putting more effort to exploit benefits and manipulate services from genuine businesses. Cybersecurity has become a must-have for every industry to accurately deal with the customers’ data. Due to a significant increase in high-profile identity thefts, data breaches, and other digital crimes, millions of customers are at stake of financial and benefits loss.
Keeping in view all these emerging concerns, identity verification has been set off as a need of the hour requirement in every industry. Employing these services not only helps businesses to transform and widespread their processes but also enhances customers’ trust and reliability. Be it attracting and registering customers or business partnerships, ID verification is all-important for every process.
Digital Identity Verification – Why is it Important for Industries?
Whenever a customer lands on any platform, they are required to submit personal identifying information prior to registration. The collected information then serves as proof that customers exist in the real world. Furthermore, identity authentication offers real-time verification that allows businesses to check the presence and detect the liveness of customers. Previously, processes were not easy nor encrypted which increased the chances of human error and abandoning of onboarding. To minimize any such drawbacks, industries need to employ digital services.
Identity verification is significant for several reasons:
- Ensures KYC Regulatory Compliance
Industries operating online or manually are regulated by central authorities other than cryptocurrency. These authorities serve various purposes from mandating regulations to continuous monitoring. Likewise, considering synthetic identity fraud, businesses are obliged to adhere to Know Your Customer (KYC) standards and efficiently carry out customer due diligence (CDD). industries need to make sure that they are onboarding and assisting legit users before hopping on to building business-customer relationships. This is so they can prevent identity theft, money laundering, and other related crimes.
- Fraud Detection and Prevention
As Shufti Pro News indicated, If businesses are accurately holding their customers’ information, they are one step ahead of the criminals and preventing fraud.
- Enhance Customer Experience
Identity verification services enable industries to build a better sense of the audience they are attracting, their interest, purchase patterns, priorities, and preferences. This will help industries to accurately verify identities as well as allocate personalized assistance.
- Reduces Operational Cost
Identity fraud is on the rise and businesses need an automated and more streamlined service to validate customers, ensure privacy, and protect information. While hiring a manual verifier, the process will involve huge resources and less accuracy. On the contrary, AI-powered solutions are cost-effective and quicker.
Digital Onboarding and Customer Verification – How Does the Process Work?
A digital biometrics identity verification system consists of various elements that businesses use to validate customers. These elements refer to the methods that provide different assurances in determining the claim of customers and their existence in the real world.
All put together the methods assure authenticity, accuracy, and robust verification. For instance, records paired with documents or details with facial recognition. Businesses need to ensure that the solution they are using helps in identity theft protection. These services involve a series of checks combined to ensure accuracy and authenticity.
Identity-based Record Check
After digital transformation, government processes are also opting for online methods to store and monitor information. Furthermore, digital services allow platforms to access global databases. By using these features, businesses can conduct background checks on not only customers but also parenting corporate firms. These include voter and commercial registers, credit, personal information, and utility databases.
Proof of Address Check
Proof of address is crucial for businesses to comply with AML regulations. Furthermore, it is equally important for satisfying KYC standards. Here, the system asks for documents that serve as proof of address. These include utility bills, rental or ownership agreements, credit card bills, and insurance details.
ID Document Check
Due to the regulatory obligations, businesses are compelled to take sufficient measures to mitigate fraud, hence database checks alone will not do the task. Real-time verification is what businesses need and it primarily includes identity document verification. By employing encrypted solutions, the system extracts data through OCR technology. This way companies can not only verify customers authentically but also ensure their data’s security.
Facial Recognition Check
Facial recognition is another add-in to the list of verifiers. It identifies the customers by scanning their faces and creating a face map. This ensures that the person is not an imposter. The system uses mathematical algorithms and matches the face with one on documents.
