In our digital age, billions of smart gadgets circulate, connect, and communicate. Smartphones are used for shopping, gaming, banking, investing, teaching, and digitizing. In 2019, there will be 3.2 billion smartphone users, 3.5 billion in 2020, and 3.8 billion by 2021. Pervasive internet access is altering the planet and its economy. Online customers’ expectations are shifting, and they want flawless customer service.
Online banking and payment systems are vulnerable to hackers. Bad actors who use these sites are detrimental. They utilize the system for evil. These include identification verification software, account takeovers, money laundering, and terrorist funding. Businesses must take strict precautions to secure platforms without compromising the consumer experience.
A Race of Innovations and Innovative Fraudsters
As technology advances and real-world challenges are solved, unique security measures are taken. Fraudsters use similar methods and technology to bypass security defenses. The race continues. After some time, firms go bankrupt and implement stricter security measures, which criminal actors abuse. Cybercriminals overwork and uncover system weaknesses to launder money, steal identity credentials, or perpetrate credit card fraud.
Online fraud is increasing. Scammers use peer-to-peer marketplaces to defraud buyers. Phishing, virus injection, and data breaches steal consumers’ personal and financial information. Customers build fake internet personas using this information. Online marketplaces must balance security with user experience.
Identity Verification: One-Stop Fraud-Fighting
Uncontrolled access to personal data causes most internet scams and financial crimes. An unauthorized entity enters a database, program section, online user account, or organization’s secret data repository. Identity verification prevents online fraud. Online identity verification improves security and usability. Real-time identification and identity verification software to allow only honest traffic into their system.
Businesses need to verify identities. The identity verification market is estimated to reach 18.12 billion U.S. dollars by 2027, up from 5.52 billion in 2018. Businesses take client verification seriously since it’s a regulatory obligation in several areas to combat financial crimes, including money laundering and terrorism funding.
How is ID checked?
Three processes verify identity:
Information-gathering
First, identity verification collects user data. Name, address, birth date, etc. These are personal details. These details are gathered during account registration.
Request a user photo
In the second stage; the user uploads an identity verification document. The doc
- ID,
- passport,
- license,
- credit/debit card
Verification
Once uploaded, the document template is recognized. OCR extracts document data. Authenticity is tested throughout this procedure. If user-entered and extracted information match, identification is validated.
Types of Fraud
Identity verification may help with the following frauds:
Identity theft
Online identity thieves utilize several scams. A program that stuffs all possible combinations of usernames and passwords to obtain the correct one grabs personal and financial information. This information is used for digital malice. No unauthorized entity could trick the system using biometric facial recognition. Only those with unique face features could log in.
Credit Card Fraud
Fraudsters locate anything important on a canceled, stolen, or lost credit card. Sometimes a genuine person’s identity is exploited to get another person’s credit card. Credit card identity verification software companies may be used.
Robbery
In account takeover fraud, fraudsters enter a user’s account, change their username and password, and then commit fraud. The genuine user can’t use this account. The account is used illegally. The online platform must provide a secure login option to safeguard consumer data and prevent illegal behavior.
Identifier
Fraudsters exploit internet platforms using phony identities and credentials. Fake social media profiles are used to troll, harass, and distribute disinformation. Each onboarding identification should be confirmed against biometrics or a document to prevent illegal or fraudulent identities from misusing the system.
Identity verification service battle various scams. Various businesses prone to internet fraud should regulate access to secret user accounts and corporate databases to dissuade criminal actors.