Customer Identity Verification: 5 Promising Solutions For All Enterprises
Identity, something that is mandatory to be unique, something that everyone has their own, and is crucial in this modern era. Identity is the most valuable possession and protection of it is something that must be neglected at any cost.
Do you have any clue about the emergence of identity theft cases all over the world? Well, let me make you notice some of the statistics.
Data theft is a great business and it has been evolving at a swift pace especially since the pandemic outbreak. The number of identity theft incidents encountered for the second year back to back in a row. A ratio of 6.6% of customers falls victim to identity fraud in 2016, 5.7% in 2018, and 5.1% in 2019. Talking of 2019, $2.5 billion was lost due to identity theft in that year and the number tends to increase continuously with the passage of years. Not only this, there were 7,836 compromised websites resulting in data breaches during the year 2020.
These enormous figures depict that cyberattacks and identity theft cases are never going to stop in the upcoming years, leading us to the fact that it’s high time for businesses and financial infrastructures to integrate themselves with such reliable, robust, effective, efficient, and accurate products that fulfill the customer demands regarding enhanced security protocols, as well as make the enterprises an effective deterrent against identity theft cases.
Here are the top 5 most promising online ID verification solutions and services that all enterprises must mandatorily attain in order to establish a transparent relationship between business and its potential customers.
1. KYC AML Compliance
Let‘s dig into it one by one.
KYC or know your customer is a solution of service to identify the identity of potential customers of the organization before establishing any relationships with them. KYC laws are initially incorporated only in financial infrastructures but gradually such solutions started to indulge in non-financial businesses to perform crucial ID checks online. KYC compliance is a regulatory obligation of both non-financial and financial services.
Sub-branches of KYC solution includes:
- Know your Transaction (KYT)
- Know your Business (KYB)
- Know your Patient (KYP)
An anti-money laundering (AML) compliance program is basically a set of processes as well as procedures acquired by businesses and financial infrastructures to deter terrorist financing and money laundering activities. Global regulations and laws for example bank secretary act (BSA), the European union’s fifth and sixth anti-money laundering compliance force financial enterprises to invest in anti-money laundering (AML) compliance programs. Consequently, KYC AML compliance is a measure for customer identity verification to deter fraudulent activities.
2. Biometric Authentication
Whenever it boils to digital space, users always prefer the convenience and enhanced security protocols. Traditional customer identity verification methods are not capable enough to meet the customer demands, which brings the biometric authentication solution and services under the limelight. Biometric authentication helps in identifying the identity of potential customers of an organization with the utilization of unique biological features of the customer. The attributes that are used during the process of biometric authentication include analysis of eye structure, DNA, the shape of the nose, shape of chin, fingerprint patterns, iris scan, and other unique facial features.
3. OCR Data Extraction
The optical character recognition (OCR) data extraction feature captures the data from the document in a matter of seconds with a tremendous rate of accuracy, efficiency, and effectiveness. OCR data extraction supports the data extraction from multilingual documents to perform Id check online. OCR extracts data from both structured as well as unstructured documents, with global coverage of more than 150 languages.
4. NFC Verification
With the continuous revolution in technological advancements, identity verification with the utilization of NFC technology effectively reduces manual efforts and detects forged documents accurately. More than 81% of mobile devices are NFC enabled these days. This promising technology reduces manual processes which are usually tedious and prone to error. NFC verification makes the entire data entry process frictionless and provides reliable verification results.
5. 2-Factor Authentication
Two-factor authentication provides an additional layer of security to the potential customers of the enterprises and keeps the fraudsters away from them. The incorporation of two-factor authentication prevents imposters from attaining malicious access to highly sensitive accounts. Securing an account only with a password is not a good idea in this modern age when hackers are attaining more sophisticated tactics to have unauthorized access. The incorporation of two-factor authentication helps in the establishment of trusted long-term relations and enhanced convenience for satisfied customers.
All in All
Seriously, identity theft is not a joke or something to turn a blind eye to. Millions and trillions of innocent families suffer because of the progressing identity theft cases. It is one of the rapidly-growing crimes across the globe, especially in suburbs. This issue needs to be addressed by enterprises and they must significantly enhance their cybersecurity protocols by integrating themselves with some promising solutions such as Shufti Pro. such products provide real-time online identity verification methods that perform verification in seconds from more than 3000 documents with background screening against more than 1700 watchlists. Hence, it is true that businesses cannot completely stop cyberattacks, but all they can do is deter them with the acquisition of ID verification online solutions and services.