Businesses are looking for reliable solutions with the uprise of digital platforms. They have made the working operations incredibly easy and smooth while handling online transactions. But they have their constraints which consist of risks of fraud. Fraudsters tend to target those businesses more often that involve money transactions and transfers. As cases of data breaches and identity thefts have increased, it is tough to detect whether the person interacting is a legitimate person or not. Old ways of identity verification have become ineffective. Scammers have become clever in impersonating an identity. They use the tactic of modifying documents by entering fake information to gain access to various platforms illegally. Due to its robust system, companies are encouraged to execute online identity verification services in their systems rather than the manual ID authentication service.
Identity Threats In Online Platforms
Fraudsters are misusing technology to their advantage to perform illicit crimes. It has created problems for companies in conducting the process of digital onboarding swiftly. New methods for manipulation have upsurged. Due to this, the simpler version of ID verification is not sufficient anymore.
Not only does the company’s value gets degraded but the customers can also face adverse consequences when exposed to such crimes unintentionally. Stealing the credit cards of individuals and mishandling them to buy illegal products are clear examples of it. As made evident by Shufti Pro News, multiple banks and fintech companies have to pay compliance fines when encountering such problems. They lose customers’ trust while putting their reputation at stake. A need for an identity theft protection service has been raised due to the prevailing data breaches. Two primary types of identity theft are mentioned below:
Synthetic Identity Fraud
Whenever authentic information about an individual is mixed with some fake information, the crime of synthetic identity fraud occurs. Since a part of synthetic identity documents constitutes original information, it is hard for them to get detected. Unauthorized activities are carried out by fraudsters to provide illicit damage to individuals.
Frauds Committed Through Stealing Credit Cards
Customer negligence and the sophisticated tactics used by criminals play an integral part in executing credit card frauds. Scammers can hack the credit card pin associated with a user swiftly by using various techniques. Once the scammer gets a hand on the credit card, they utilize it for purchasing illegitimate or harmful products such as weapons. It becomes a nightmare for many individuals as they are arrested since the purchase is being made under their name.
Automated ID verification vs Manual Identity Authentication
Digital platforms are popularized as many intriguing innovations have helped many business corporations to expand their operations. A digitally verified identity can provide numerous benefits in contrast with an ID being verified through the old ways of identification. Major differences between them are listed below:
- Traditionally verifying an identity can be time-consuming. Automated-based identity verification services help in processing the results of an individual in less time.
- Human-based manual verification can be prone to errors. While on the other hand, AI-based identity verification systems precisely lookout for any errors with a greater accuracy rate.
- Companies have to hire professionals to check the authenticity of an individual. With advanced techniques, fraudsters generally find new loopholes. Online identity verification is significant in saving a company’s cost for hiring and utilizes fewer resources.
- Businesses can improve their overall productivity by enabling an online identity verification service. Manually entering data into the system can be tiring for the employees. The time saved in automatically verifying identities can be used for completing some other useful tasks.
Identification Using Biometrics
To ensure that only real clients are being onboarded, it is essential for businesses to incorporate biometric technology into their systems. It helps in making the verification process smooth by enforcing the live detection technology. It helps in differentiating a client’s face in the video call from the spoof tricks used to impersonate an identity like deep fakes or photoshop.
The biometric identity verification system captures the facial features of the individual. It analyzes the expression to verify identity. As it is considered to be a more reliable option for verifying identities since every identity has its unique features, many companies are showing reliance on them just like Shufti Pro Fundings.
Wrapping it Up
To conclude everything, it is vital for companies to incorporate online identity verification services to ensure data security and enable a secure digital onboarding. This will help them to save their customer’s from becoming victims of identity theft. Problems such as synthetic identity fraud and credit card scams can be dealt with the AI-based identity verification systems. Providing numerous benefits of saving time, cutting costs, and having a higher precision level affirms that companies should enforce these digital identity authentication systems for protecting them against any bad consequences.