For any business data, privacy and digital scam prevention have become crucial in this digital world. For more significant revenue generation, better user experience plays a vital role, and digital identity verification is a seamless procedure providing authentication of the user in no time. The adoption of innovative security solutions can help businesses deter the risk of digital scams such as account takeover, credit card frauds, fake identities or identity theft frauds. Payment scams and data breaching that takes place now and then cost businesses a lot of money surely more than the cost required for the installation of security systems.
Achieving transparency and efficiency is the primary desire of any business owner. Keeping in mind the importance of security and convenience, data protection is the utmost need that needs to be dealt at first to provide excellent customer experience. Businesses are incorporating ultimate security measures to prevent their software from cyberattacks and malware injection that can affect their customers and business values. Identity theft is the most common threat to businesses that can cost a company billions of dollars by regulatory authorities. Customer data is a precious asset for online companies that have to be protected by all means. Or else the company will have to face harsh regulatory fines and monetary loss that too with reputational damage.
Frauds that can be eliminated with an identity verification solution
Fraud takes multiple facets when targeting different businesses. It could be in the form of stolen ID cards, synthetic Identity, account takeover, money laundering, fake merchant fraud, and many others. All these frauds can be reduced with single API integration of ID verification solution into the web portal, website or app of your business.
Fake or stolen Identity to onboard a platform
It is a common practice among the criminals and fraudsters to use stolen or fake ID cards and other identity documents to onboard a platform. A money launderer will use a fake ID card to launder money through a legitimate platform in an anonymous manner, while a minor will use a fake ID card to get his hands on age-restricted goods and services. Also, a criminal will use a stolen ID card of a person to take funds from his account.
In all the scenarios mentioned above, the ultimate loss is borne by the merchant or the business. Digital ID screening solutions will catch all these frauds at the initial stages eliminating any chances of failure due to fraud.
Synthetic identity fraud
Synthetic Identity is bringing havoc in several industries. It is a mix of fake and stolen identities. Criminals would steal some legal ID card numbers that have not been used for a long time and attaches some fake credentials to it to make a new identity, called synthetic Identity. Such characters often pass the security threshold if the merchant only verifies the authenticity of the ID card number while the ID card itself is fake.
Online identity verification solutions that use document verification to verify the Identity of a persona are the feasible method to catch these frauds. Such solutions verify the authenticity of a document and all the information available on it. So even a synthetic identity is found within 30-60 seconds.
Money Laundering and terrorism financing
Money laundering and terrorist financing is a punishable crime as per global regimes. The businesses aiding such criminals intentionally or unintentionally are liable for huge penalties. Criminals often use the stolen credentials of a legitimate client to overtake his account. Once they have the hold of the report, they can launder money easily. In case the business offering fund transfer facilities perform identity verification on its clients every time he/she logs in, the risk of money laundering and customer exploitation can be eliminated easily.
To wrap up, fraud is revolutionizing equally with the advancements in technology, so the best way for businesses to cater to this storm of fraud with the help of technology. Digital identity verification solutions are a cost-effective method to mitigate these frauds. Once a company has control over fraud only then it sets foot on the way to retainable success. Such proactive fraud prevention kills two birds with one stone as it helps in preventing non-compliance penalties along with fraud prevention.