With digitalization, online scams and identity frauds are increasing exponentially. Cybersecurity is referred to as the main component for the online business, which deals with clients’ sensitive data as well as providing transaction gateways. As never-ending cases of data breaches and identity fraud have been reported to have affected billions of people as well as businesses, this has opened the eyes of regulatory bodies to establish a set of standards for verifying the customers’ identities.
Moreover, coronavirus has reshaped the business structures as they are shifting towards digital platforms, and new norms of work-from-home are being adopted. Additionally, due to digitalization, the transparency between the businesses and the customers is reducing due to which developing trust is quite challenging. Therefore, keeping in mind the businesses’ requirement digital identity verification solutions are developed by the SaaS providers. Such systems assist the company’s operation and improve their productivity.
Online ID Verification- All-in-one Solution to Deter Frauds
Nowadays, criminal activists are using sophisticated tech tools and methods to manipulate security systems. Majorly the reason behind the spike in online identity fraud is unauthorized access to the information which requires utmost protection. The fraudsters are becoming pro, whether it’s the digital social account or the databases they easily get access to and become part of the system. Thus, the ID card verification solution is a perfect solution which promises security as well as improving the customers’ experience. It allows online businesses to verify the identities of their customers before getting them on board. Additionally, it also filters out the clients who possess potential risks like money laundering.
Digital identity validation solution fulfills the regulatory requirements of complying with know your customer and anti-money laundering laws. Online companies are now able to identify their customers’ identities before onboarding them and make sure that legitimate entities are to be facilitated. This is conducted while the customer is about to become part of the system. For utmost protection, AML background screening is also done in which the customers are screened against the global watchlist, sanction lists, and financial databases. Due to such effective security measures, the criminals are caught before any suspicious activities happen.
This identity verification system incorporates artificial intelligence and biometric technology to enhance cybersecurity. The customers have to undergo face scanning to be quite sure of one identity.
Steps involved in identity verification
The customers who are intended to register onto the digital platforms are requested to input all the personally identifiable information which includes name, ID card number, date of birth, etc.
Submitting Identity Documents
Once the customers have provided the information, they have to provide either scanned copies or photos of the identity documents like ID card, passport, and driving license.
When the customer is done with uploading the documents and inputting the information, templates of documents are identified. Additionally, using OCR technology the data placed in the documents are extracted in order to check the authenticity of documents. Only If the extracted information is matched with the data provided in the registration form, the customer’s identity is verified.
Various Types of Identity Frauds
Criminals have come up with ultra-modern ways and techniques to steal digital identities. Primarily they use the credential stuffing method which automatically tries multiple combinations of the username and password in order to get the correct password. Moreover, the abducted information is then used to carry out malicious activities.
Credit Card Scam
This is one of the most happening crimes worldwide which is impacting credit card companies adversely. Usually, the criminals use the revoked cards or those which are stolen in order to buy valuable products. In the worst case, the fraudster uses the real identity information of the legitimate entities to receive credit cards over other person names.
Account Takeover Fraud
In this case, the imposters usually get access to the victim’s account and then change the personal data like password and username. Once the fraudster has taken down the account they commit fraudulent activities which unfortunately damages the reputation of the victim. Moreover, fraudsters intend to run illicit activities whose consequences could be adverse. It’s the responsibility of the digital platforms to employ identity verification systems in order to provide a secure environment to their customers.
Thanks to technological advancements the criminals have become pro in making false social accounts and are using such platforms for their illicit activities. By availing the advantage of gaps that are present in cybersecurity to manipulate the system and to steal customers’ sensitive information. The aftermath of such situations is even worse than someone can imagine. Thus, identity verification service are vital for the digital business to pull off bad actors from cyberspace.