Businesses are under a continuous impact of identity theft, data breaches, illegitimate onboarding, and non-compliance fines. This is because the criminals are using advanced methods like deepfake, spoofing attacks, and document forgery to dodge the verification process. This makes it difficult for the industries to identify imposters and ultimately face hefty non-compliance fines.
According to regulatory standards, businesses should verify customers before onboarding them. Therefore, industries need to employ accurate and seamless identity verification services. The AI-powered identification tools enable industries to detect imposters at the time of registration. For instance, they offer liveness detection, document validation, facial recognition, and other such methods. This blog discusses the details, methods, and benefits of ID verification solutions.
Digital Onboarding – Steps for Legitimate Customres’ Registration
Businesses are rapidly moving towards digitization which is increasing the chances of criminal threats like identity theft. This is why businesses can not limit verification to the registration process. So much so, traditional customer verification methods are also not enough compatible to deal with present fraudulent attempts. Therefore, industries need real-time and continuous verification to prevent unforeseen criminal threats. Here, AI-powered solutions enable businesses to keep track of their customers’ activities and detect suspiciousness in time. The identity verification solution further involves the following stages:
Legitimate Customers’ Onboarding
According to Shufti Pro News, criminals of today are becoming sophisticated and use different methods to bypass the verification process. However, with authentic identity checks in place industries have fewer chances to face criminal-based exploitation. This is because the AI-powered identity verification services not only validate documents but also cross-check customers against various sanction lists.
They use OCR technology to extract information, liveness detection to validate ‘present in real-world’ claims, and facial recognition for additional security. All in all these customer identification services will ensure legitimate onboarding while speeding up the verification process.
Customers’ Documents Verification
According to the Javelin Strategy & Research, the total loss from identity fraud crosses $56 billion as of 2020. The institute predicts that the number will further rise to unexpected levels. Keeping in view the increasing number of identity theft, regulatory authorities are revamping stringent regulations. The laws mandate that industries should verify their customers before onboarding them. They should validate documents and perform accurate identification.
The Know Your Customer (KYC) involves the verification of documents like government-issued ID cards, passports, driver’s licenses, and green cards. For further accuracy, the industries need to incorporate online biometric verification systems which provide facial identification, liveness detection, and voice recognition.
Authentication of Customers
After accurate and successful verification, businesses should authenticate their customers’ identities. This involves their cross-verification against global watchlists, for instance, Politically Exposed Persons (PEPs) and EU’s sanction lists. The need for these checks is increasing because cybercriminals are using advanced methods to dodge password-based verification.
Therefore, businesses need to incorporate robust identity theft protection solutions to verify imposters. Ultimately, Shufti Pro Funding indicates that businesses can provide a better and more secure experience to legitimate customers.
Identity Verification Services – Top Benefits for Industries
Where businesses are moving towards digitization and facing numerous challenges, online identity verification services are providing shielding their operations. This is so by providing better compliance, real-time verification, authenticity checks, and improved customer experience. The next section includes some more of the benefits:
Minimizes the Chances of Hefty Fines
Regulatory authorities mandate industries to accurately verify their customers and in case of failure, they will face hefty fines. The chances of these penalties increase as criminals use advanced methods and bypass verification processes. However, industries using authentic and robust ID verification solutions are less like to face non-compliance with KYC/AML regulations.
Prevents Fraud and Restrict Crimianls’ Access
Customer verification solutions ensure better compliance by mitigating frauds. The system asks for documents and OCR technology extract information which minimizes the time involved. Moreover, the system verifies the documents by cross-checking them in global databases. This way, businesses can ensure legitimate customer onboarding alongside restricting criminals’ access during registration.
Provides an Improved Customer Experience
Businesses that face data breaches and identity scams are more likely to experience customer dropoff. This is because the clients are more concerned about their data security and privacy. Therefore, industries need to employ improved and accurate verification services for two reasons. Firstly, to ensure legit onboarding and secondly to protect their customers’ information. This will ultimately add up to a better customer experience.
Identity verification services help businesses ensure that they are onboarding legitimate customers. With its accurate identification, liveness detection, and facial recognition features, industries can shield their operations and make sure that accredited customers are present behind the screen. Furthermore, the robust ID verification solutions detect deep fakes, spoof attacks, and other fraudulent attempts. All of this is within fewer resources and in real-time.