The cyberworld can bring many security risks to your business without the right precautions. Organizations today continue to pay compliance fines for data breaches. The list of online crimes is endless, and many argue that data is the greatest asset. Any wrong move might lead to serious consequences, such as identity theft.
For this reason, screening and onboarding only trusted, secure customers through identity verification is essential. Digital authentication services also help businesses reduce chargebacks and increase conversions, making ID verification a number one step towards a safer future for your business.
What is Identity Verification and Why does it Matter?
For starters, let’s analyze the term a bit. Identity verification is a procedure that reviews people’s identities, ensuring that they are who they claim to be. In general, ID verification can be used in various instances, but the procedure is best known to be applied in the financial industry. For example, you can be asked to verify your identity when opening a new bank account or applying for a loan. It’s also known as an important process in Know Your Customer (KYC) and Anti-Money Laundering (AML) efforts to monitor new customer risks and combat fraud.
What is KYC and Why is it Important?
Know Your Customer, or KYC, is a security standard that helps ensure safe relationships between customers and businesses. In general, the KYC process includes ID document verification, face verification, and document verification, such as your proof of address (utility bill). Companies carry out identity verification of their clients in compliance with requirements and legal laws. A more automated form of KYC is now called eKYC, which means that it’s a paperless version of identification.
In other words, KYC-related practices respond to the extensive use of technology and the need to protect customers from online fraud. In a traditional sense, banks can carry out in-person KYC checks. This is an important step for verifying customer identities during the onboarding stage when the business has no prior information about the customer. Of course, KYC doesn’t stop here, as it’s a continuous operation throughout the whole client’s journey with the business.
What is Digital Identity Verification?
Digital identity verification is a remote ID verification process that’s designed for today’s customers. The global pandemic massively boosted the need for identity verification services since many businesses moved to the digital sphere. With such a shift came increased numbers of cyberattacks. For this reason, responsible businesses started to look for new and improved digital fraud prevention solutions, such as remote identity verification.
Modern identity verification implementations combine artificial intelligence and smart, automated technological services into one smooth customer onboarding process. Digital identity verification uses face recognition, biometric verification, and quick document scanning algorithms to help other businesses or government agencies battle fraud. ID verification ensures that the customer’s identity document isn’t forged and that it meets all of the security requirements.
Digital identity verification services are in high demand due to the convenience that they bring. By reviewing the customer’s identity, financial institutions are able to welcome trusted and safe clients. Scammers and fraudsters who use fake identities or tamper with documents aren’t verified during the ID verification process. Spoofing, deepfakes, and scammers that wear masks during the identity verification process – are all techniques that are used by online criminals with fraudulent intentions.
How did eKYC Transform Identity Verification?
Being called out to a physical banking branch for the purpose of identity verification seems unusual, especially in today’s context. Customers demand quick and secure services. For this reason, considering the high demands, businesses now choose eKYC solutions rather than sticking to manual forms of identity verification. eKYC transformed traditional versions of KYC verification and allowed automated many processes.
Here are the main factors that make eKYC solutions more effective:
- The speed. What took weeks now takes seconds. Digital ID verification is swift and secure.
- Easy-to-use services. The remote verification process takes a few steps without the need to step out of your house.
- Ensured safety. Digital identity verification services are built on strict regulations and high data protection standards that prioritize customers’ safety by protecting them from fraudulent activity.
Instead of verification agents, we now have AI-powered solutions where customers are required to upload an onboarding selfie and add their personal information. Once that’s done, the system carries out the process of Know Your Customer to run a quick background check on the customer. For extra safety, businesses are encouraged to use biometric identity verification. Biometric checks can identify a person by reviewing their biological traits and comparing them with the photo on the ID or passport.
What are the Benefits of Identity Verification?
When it comes to digital identity verification, part of its widespread success comes from the convenience factor. The fact that this process eliminates the need for customers to be physically present during the procedure also fits for newly emerged e-commerce players or, for instance, the cryptocurrency industry. Even though there’s no universal “one-size-fits-all” ID verification for all businesses, it’s clear that simple and secure ID verification solutions for businesses are crucial.
Digital identity verification solutions bring customers and businesses closer by providing universal access to various services remotely. On top of easy-to-use functionality, identity verification helps avoid data falling into fraudsters’ hands. The main benefits of remote ID verification for businesses are:
- ID verification helps detect and fight fraud more efficiently.
- Digital verification services eliminate the need for physical presence.
- This process enhances customers’ trust and protects the business’ reputation.
Today’s innovative technology pushes boundaries, making it easier for businesses to adapt and use digital identity verification. In general, ID verification can also be used to speed up traditional processes. For example, identity verification can be used in airports to scan passports at electronic gates. As more industries adopt digital identity verification, the corporate and political world is also encouraging the masses to follow the digitization process by pushing digital identity schemes. This way, remote ID verification slowly became the new normal.
How Does ID Verification Improve Your Business?
If you want to secure your business and play a significant role in the digitization process, you’ll need to choose a responsible digital identity verification provider. It’s a necessary procedure that improves and automates internal processes, minimizes human error, and reduces operational costs. Not to mention, ID verification protects your clients’ data and prevents fake identities as well as money laundering.
To sum it up, remote identity verification improves your business by:
- Reducing costs.
- Improving customer experience.
- Ensuring data security
- Maintaining high fraud prevention standards.
- Adapting to regulations.
That said, remote ID verification improves your business reputation by maintaining regulatory compliance and taking a responsible approach toward cybersecurity. In other words, identity verification guarantees that the person behind the screen is legitimate and has good intentions. Looking from a business perspective, ID verification provides a competitive advantage.
Final Thoughts on Digital Identity Verification
Remote identity verification services are a vital part of cybersecurity. Businesses that want to protect themselves from online criminals, fraudulent transactions, huge non-compliance fines, and reputational loss need to search for secure customer identification methods. Remote ID verification is the number one tactic that helps businesses combat fraud and improve customer satisfaction. Today, customers have high expectations and want to assume that their data is protected from data breaches or identity theft. Thanks to digital ID verification, the process is now simple and reliable.