Identity thefts, electronic frauds, and cybercrimes are on a rise. Securit of customers’ data is the prime concern of the majority of businesses. However, with an increasing number of data breaches, millions of customers are losing trust in companies. This is so because they have lost millions. Online identity verification of clients and stakeholders has become crucial for companies to ensure authenticity and safety.
Identity theft losses set an all-time high record in 2020 of over $43 billion. With businesses, shifting to digital methods, the chances of further losses are have increased. Therefore, to build trust and sustain a positive market rank, companies need encrypted and advanced identity verification services. From secure customers onboarding to partnerships, this service is vital for every process.
Identity Verification Is A Lot More Than Just KYC and Fraud Prevention
Biometrics identity verification system is backed by artificial intelligence and OCR technology. It minimizes the circumstances that prevail in businesses processes. As security, privacy, and trust are the most crucial traits for a business, identity verification online has become their must-have solution. Read on to explore more the benefits that this service has to offer to companies.
- Seamless and Authentic Customer Onboarding
Customers are the necessary assets for every business, without them, there will be no need for a company to exist. However, attracting a massive clients base is not easy, but by employing a digital verification service, the process will become seamless. It provides a swift initial registration process. This way, companies can onboard customers in seconds without having to wait. Similarly, there will be less cost they will pay. This will improve the overall efficiency of registration alongside speeding up the process.
- Fraud Detection and Prevention
By using AI-backed solutions, businesses will actively protect customers’ data while ensuring security and safety from breaches. During the process, the platform can ask for original documents for online identity verification and real-time selfie for liveness detection. This provides an additional layer to secure customer onboarding. Businesses can prevent identity thefts and related frauds because biometrics-based verification is hard to escape.
- KYC and AML Regulations Compliance
Due to the increasing number of crimes, central governments have changed the regulations by making them more strict. Therefore, every business is obliged to carry out customers verification to comply with KYC and AML regulations. By employing digital identity theft protection solutions, companies can prevent both fraud and money laundering. For AML verification, identity details are cross-matched with the ones in criminal watch lists – global sanctions, Politically Exposed Persons (PEP), and viral media stories.
- Improved Security, Safety, and Confidence
Through ID verification, companies can abide by regulatory protocols ultimately strengthening their security systems. This way companies can keep criminals at bay with intentions of harm. Identity verification solutions back the onboarding process, subsequently creating a transparent customer-business relationship.
How Does the IDV Solution Work?
Identity verification helps detect and prevent synthetic identity fraud. For the process, it has the below-mentioned steps.
Step 1 – Data Collection
This is the initial step where companies collect personal information from customers during registration. It includes full name, date of birth, address, and more.
Step 2 – Uploading a Picture
In this step, the system asks the customer to upload supporting documents as evidence. These are the original govt-issued documents that serve as identity proof. For instance, ID card, driver’s license, passport, and credit or debit card details. Furthermore, some industries ask for address proof where customers provide certain other documents. These include utility bills, insurance details, rental or ownership agreement, and card bills.
Step 3 – Verification of Information
After customers submit their documents, the system runs scans by identifying templates and forgery if any. By using OCR technology, companies’ system extracts data while ensuring the authenticity of documents. If information matches, the identity is confirmed, results are presented in front of the end-user and secondly in the back office.
The Future of Digital Identity verification Solution
Verification has been around for decades, however, the ancient process was manual. The aim was the same to prove the existence, accuracy, and truth of customers. Businesses are shifting towards digital services at a great pace. Therefore, to provide a robust solution, an identity verification service authenticates customers in real-time – proving the claim of clients. Moreover, the AI-powered SaaS services, have evolved already. By seeing in view of a crystal ball, this market holds a bright future ahead.
In the End
ID verification services are the SaaS solutions that allow businesses to onboard authentic customers. Manual verification is not that reliable nowadays as involves various errors. Criminals are sophisticated and have gone advanced, due to which companies are in dire need of accurate, real-time, and reliable solutions. Digital identity verification is one such service.