Identity Verification Has Gone Way Beyond KYC And Fraud Prevention

By Ben Zane

Identity verification is becoming a need of the hour for industries due to the criminal possessed risks and to further ensure customers’ satisfaction.

Ever since digitization, cybercrimes, data breaches, identity, and electronic frauds have become a matter of concern for every industry. Customers’ information safety is of the utmost interest to every industry. Countering this is the increase in data breaches accompanied by identity thefts. This phenomenon is making customers lose their trust in businesses. This is why improved identity verification of customers as well as stakeholders has become mandatory for industries to ensure authenticity, satisfaction, and security.

Identity theft led to an all-time high record in 2020 of over $43 billion. While industries are going shifting to digital processing, the chances of losses have increased. Therefore, to ensure customers' trust, positive experience and satisfaction industries need encrypted and advanced identity verification services. Moreover, ranging from authentic customers onboarding to legit partnerships, this solution is vital for every process.

Which Industries’ Concerns are Addressed by Digital Identity Verification

The biometrics identity verification is based on a rapidly emerging technology – artificial intelligence. This is so because it addresses privacy, data security, and customers’ trust which are indeed the prime traits for any industry. This is why identity verification online is gaining a place as the must-have solution. Dive in to explore more of the benefits including KYC:

Authentic Customers Onboarding

Customers are the prime assets because, without them, the existence of any industry will be questionable. Furthermore, attaining a massive client base has been the target for the majority of companies. This way they can not only grow but compete in the marketplace. However, this is not an easy task, but digital verification services will open new spheres for businesses to achieve such targets. Also, they are cost-effective so the businesses won’t have to wait for days for rapid customers onboarding. Ultimately, This will enhance the overall efficiency of the registration process.

Fraud Prevention

By employing AI-driven solutions, industries can not only keep the customers’ information secure but also protect it from external breaches. The process is not lengthy else it will drive the customers away. It simply asks them to provide original identity documents either in form of pictures from a camera or a live call. And for liveness claim detection, it asks for a real-time selfie. This way industries can ensure that they are assisting legit customers while preventing identity thefts all the way.

Ensuring KYC Regulations Compliance

To address fraud concerns, regulatory authorities are putting forth strict regulations which have obliged the industries to ensure KYC and AML regulations. Through digital identity theft protection services, industries can not only prevent criminal activities but financial and other monetary sectors can detect money laundering.

Enhanced Security and Privacy

Through identity verification, industries can adhere to regulatory protocols that will in turn strengthen their security and privacy services. Furthermore, industries will be able to keep criminals at bay and detect their malicious acts in time. Identity verification services also help create a transparent customer-business relationship.

Working Mechanism of IDV Solutions

Identity verification services help prevent synthetic identity fraud. The process has the below user-friendly set of steps.

Step 1 – Collection of Information

In this first step, industries’ services require identity information from customers while registering. It is the pre-requisite for onboarding. The data includes complete name, age or date of birth, and proof of address.

Step 2 – Uploading Documents and a Picture

Moving on, the system asks the customers to provide identity documents as evidence. These should be government-issued, genuine, and not older than three months. For facial verification, the system requires a real-time selfie. Various industries need proof of address like banking, surveillance, and e-commerce. These include insurance details, rental or ownership agreements, credit cards, and utility bills.

Step 3 – Information Authentication and Verification

After documents submission, the system extracts required data through OCR technology. After extraction, it runs authenticity scans by validating templates, rainbow prints, paper type, watermarks, and detect forgery if any. During cross-checking, if the information matches and identity is confirmed, results are firstly displayed on end-user’s screen and secondly in the back office.

In the End

ID verification services belong to the online SaaS solutions category that enables industries to register and onboard legit customers. These are gaining massive popularity because manual verification is considered to be less reliable. It involves high chances of discrepancies and human error. Furthermore, criminals are becoming sophisticated and advanced, this is why industries should employ accurate, real-time, and reliable solutions. Here, digital identity verification is one such solution. Moreover, AI-powered services have evolved already and becoming more advanced. By seeing a view from a crystal ball, the market value is already making it rank at the top positions.

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