Financial identity theft affected 47% of Americans in 2020. That’s close to 50% of the total population. An online identity verification service is a powerful defence against threats like identity theft. Nowadays, every company or brand has a website where customers can buy their goods or services. A startling increase in cybercrime has been observed as a result of widespread digitization, however. To identify and stop threats like identity theft, the situation demands a specific ID verification module. In their initial online interactions with potential customers, businesses use digital identity verification as their first line of defence.
Is Digitization Taking ID Verification to a Whole New Level?
During and after the pandemic, companies and individuals have shifted from manual identity verification that required physical legal documents and utility bills as proof of address to digital ID verification processes that now include biometric facial recognition, liveness detection, and document verification. Online gaming, travel, healthcare, government, and eCommerce are just a few of the sectors that have switched to digital onboarding.
The two industries that use identity verification services the most frequently during customer onboarding are the financial sector and online marketplaces. Know Your Customer (KYC) is a crucial element of identity verification that helps determine whether a customer is risky.
Online ID Verification and Digital Onboarding Protecting From Scams
Modern customers expect the same service at digital branches as they do at physical stores. It entails offering streamlined services, bettering customer service, and ensuring safe customer onboarding.
Customers these days are very concerned with their online security, and if they don’t feel comfortable giving their data to one company, they won’t hesitate to go to a rival.
- The circumstance outlines specific tasks for organizations.
- To always maintain the safety of customer data.
- Providing seamless customer service will boost conversions.
- In order to ensure efficient customer onboarding.
To ensure companies can fulfil these tasks, Shufti Pro Funding adds a sophisticated biometric identity verification system. These identity verification solutions simplify companies’ ability to onboard clients after a successful identity authentication every time. As a result, businesses can better relate to and bond with their customers for a lasting relationship.
Considering the Regulations on Identity Authentication
Strict guidelines for customer identity verification and record maintenance have been established in a number of nations worldwide. To remain in business and avoid penalties, all businesses must abide by local, state, and federal laws. These rules are intended to prevent data breaches, identity theft, and online fraud.
Governments all over the world constantly update their regulations to stay current, which can occasionally catch businesses off guard. Businesses should take services from the companies providing ID verification services to keep their operations streamlined. These businesses create their products in accordance with the most recent regulations and periodically update them.
Identifying the Loopholes to Prevent Fraud
The main motivation for companies to use digital identity verification is to reduce their exposure to fraud. Globally, the frequency of data breaches has skyrocketed in recent years. One explanation for this is that scammers are constantly evolving and coming up with new ways to get around security measures. Once they bypass the security measures, they can steal confidential data from banks and other financial institutions and take over accounts.
The Ultimate Benefits of ID Verification
Providing robust security with the ID verification system has taken the online security of clients and companies to a whole new level. Shufti Pro news and many others state that integrating artificial intelligence and machine learning into the online processing of customer information is now the most important aspect of internet security.
Real-time due diligence, transaction monitoring, and other Customer Due Diligence (CDD) techniques can all be made possible by accurate customer identification. The goal of digital ID verification over the long term is to achieve the same level of trust that has been attained by traditional identification. The verification process is designed to be simple and secure so that users can have faith in digital identity solutions. Businesses that are unable to win over customers’ trust eventually experience a decline in sales. This may be the rationale behind the need for strict authentication procedures. Businesses should think about relying on a reliable ID verification solution that aids in securely verifying user identities while maintaining a positive user experience.