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Why businesses need Online Identity Verification today?

Identity verification the influence of technology and digitalization of daily life makes businesses rethink their approach to doing business. Where marketing would cost a lot to do now is simple, due to the power of social media and online ads. Shops that struggled with attracting customers due to their poor location now can sell goods online to customers in any part of the world. Companies and markets look to take advantage of the countless benefits of going online. However, those benefits come big risks and threats as well.

The internet also opens doors to scammers and criminals enlarging the number of people they can target to the entire world. More than 3 million complaints relating to identity fraud were reporting in 2018 alone according to the FTC. These crimes costed a loss of $1.4 billion in that following year with billions more lost due to other crimes such as money laundering, etc.

To counter these crimes, KYC and AML regulations are introducing by global authorities and law agencies. Businesses and companies are requiring to follow these laws or else face fines along with the losses emerging from cybercrimes. These security procedures, however, may perhaps be outdating due to still being performing manually using manpower. That tends to take their time as well as their customers’. Hence the existence of online identity verification solutions aims specifically to aid businesses in this regard.

What is online identification verification?

It is the security measure of performing KYC (Know Your Customer). To prove the identity verification of whom they state online using technological methods. This approach not only cuts down in time taken and manpower but eliminates errors too by utilizing artificial intelligence. There are several ways of conducting online ID verification particularly based on different kinds of possible use cases. These are:

Document Verification

A user may have their identity verified through the scanning of their documents. Which could be their ID card or driving license, etc. Using OCR and AI, the information on the document gets intelligently attracted and sorted into categorical data online. Which is then matched with their entered information to prove who they say they are.

Address Verification

Similarly, through scanning a legitimate document, users primarily. Looking to place an order on a shopping site may prove their identity. Through their address verification which proves that their entered shipping address is in fact their address. This aims to fight possibilities of credit card and chargeback fraud where a thieve may use someone else’s identity and payment information. To make a fraudulent purchase or if a customer gets a product and pretends they did not in order to get a refund which hurts banks and marketplaces.

Biometric Verification

Using biometrics such as their fingerprint, iris, or face, a user can safeguard their identity. Sensitive data from hackers and identity thieves. This serves also as an alternative way of logging into their account. Instead of using a password that is far most easily obtainable to hacking methods such as phishing and malware. This is a foolproof method of proving identity verification as a thief would lack biological proof such as when prompted to make a facial scan. Which AI extends further to make it a secure thorough process to prevent criminals from fooling the system using a photo or mask.

Consent Note Verification

To automate and digitalize a process such as making a bank account or transaction. Businesses can prove the identity of their customers by requiring them to make a consent note that is handwritten. Shown by them in a photo or video with them stating their intent/request. Facial recognition would prove the customer’s identity verification while OCR would detect the presence of their handwritten message. Banks find this method useful in the case where a victim of identity fraud. Complains of having unknown bank accounts opened by the thief.