Online Identity Verification: The world is moving towards digitization at a high pace. The businesses around the world are revamping their operations and shifting them into a digital environment. The need for this is as a result of increasing customer expectations and the pace of digital inclusion. Online businesses such as e-commerce, e-gaming platform, digital banking services, digital payment services, etc. are operating in an environment which has its own challenges which need to be taken into consideration to provide seamless services to the customers.
The aim of every online business is to ensure a high online customer conversion rate. However, there are several other aspects that should not be overlooked while providing customers highly efficient services. These aspects correspond to the security of online platforms. Online Identity verification of online customers is crucial for all businesses operating in the online world to curb the digital fraud rate that is increasing with time. The rising online businesses and online sales are going to stay and they are expected to reach about 4.8 trillion dollars market by the year 2021.
Increasing Internet Frauds Calls out ID verification Checks
The increasing cybercrimes are calling for security measures that could help mitigate the risks they come up with. An array of digital frauds such as identity theft, account takeover fraud, high-scale data breaches, and various financial crimes such as money laundering and terrorist funding. These digital frauds impact the global GDP and overall global economy. All these malevolent activities are performed by bad actors that become part of some legitimate platforms because of the lack of stringent security measures. The multiple facets of credit card fraud and other internet fraud are as a result of unauthorized access where anyone can participate in the system without sufficient identity verification checks.
Manual identity verification is a tedious and time-consuming process in which manual identity verification is done. Today, with technological advancements have presented advanced solutions for online identity checks that verify the individuals online through various means. For instance, digital banking platforms would require online document verification of their customers against their ID card, passport, or driving license online. As these provide surety of identity. Digital payments and transaction services could employ biometric facial recognition identity checks to verify the customer based on facial biometrics.
Ensuring Security with Identity Checks
The online platforms can ensure the security of their platforms by employing identity checks over the system. These checks will identify and verify each onboarding identity against several checks. Some of them are the following:
- Know Your Customer (KYC) verification of customers against government-issued identity documents.
- Anti-money Laundering (AML) checks against the global watchlists, sanction lists, and updated databases of Politically Exposed Persons (PEPs) list.
- Biometric verification in real-time for authorized access over online user accounts.
- Address verification in e-commerce platforms to mitigate shipping fraud.
- Age verification checks over gaming platforms as per regulations.
- Video KYC by a KYC expert for the banking industry to ensure online KYC.
All these checks employed in an online platform serve the purpose of digital security over the platform. These reduce the risk of fraud and an array of cyberattacks and payment scams. Along with this, the advanced identity verification solutions ensure the aspect of customer experience while performing identity checks over the customers. The seamless services, therefore, are need of the hour as they fight against all the digital fraud which have disrupt the digital environment.