In today’s digital world, billions of smart devices circulate, interacting and conversing with one another regardless of location. Smartphones are used for everything from online shopping to gaming, banking to investing, learning to teach and serving to digitize. Businesses have realized the necessity for identity verification in their systems. The identity verification market, which was valued at approximately 5.52 billion US dollars in 2018, is predicted to grow to approximately 18.12 billion US dollars by 2027, according to forecast. Furthermore, because client verification is a legislative obligation in several sectors to deter the dangers of financial crimes such as money laundering and terrorism financing, firms are taking the verification process seriously.
According to a report, there are 3.2 billion smartphone users in 2019, with that number expected to rise to 3.5 billion in 2020 and 3.8 billion by 2021. Because of widespread internet connection, the globe and its economy are changing dramatically. Along with this, online customers’ expectations are evolving, and the demand for a consistent customer experience and services is growing.
Security is introduced in the game here. Security is a difficult issue for internet businesses to balance with consumer experience.
The banking industry, specifically online transactions and payment systems, is vulnerable to a variety of cyberattacks. Bad actors who are inadvertently helped by such sites are damaging. They abuse the system and engage in malicious behaviour. These activities range from identity theft and account takeover attacks to more serious crimes like money laundering and terrorist financing. Businesses must use severe procedures to ensure that customer experience is not jeopardised while securing the platform.
A Race Between Innovation and Innovative Fraudsters
As technology advances and solutions to real-world problems emerge, they are safeguarded through novel methods. On the other hand, fraudsters use comparable technology and hacks to circumvent security measures. It’s a never-ending race. With the passage of time, businesses suffer huge setbacks and devise a more severe method of securing platforms, which are then exploited by bad actors. Cybercriminals work tirelessly to exploit system flaws in order to launder money around the world, steal the identity credentials of legitimate digital users, or commit credit card fraud.
Marketplace fraud is on the rise, particularly in internet transactions. Scammers construct a product listing and defraud buyers in peer-to-peer marketplaces. Phishing assaults, malware injection, and data breaches all result in the theft of digital users’ personal and financial information. Customers utilize this information to establish phony identities that they may use online. It is difficult for an online marketplace to deal with security risks while maintaining a positive client experience.
Identity Verification — A One-Stop Destination for Fraud
The majority of internet frauds and financial crimes occur as a result of unauthorised access to personal data. The game begins when an illegal entity becomes a part of the system, whether it be a database, software section, online user account, or an organization’s secret data storage. Identity verification is a one-stop solution for preventing online fraud. Online identity verification ensures security as well as a better user experience. An individual is identified and validated in real-time, within seconds, allowing businesses to let only honest traffic into their system.
Businesses can verify a customer’s identification while onboarding them to ensure that they are who they claim to be. This can be done at account registration, when, in addition to identifying an individual, it is checked against several global watchlists and sanction lists. AML screening is carried out to prevent criminal entities from accessing the system.
These two phrases are used in the identity verification process when it is being implemented. For example, when doing biometric authentication of an individual, such as face recognition, the first step is to identify the individual’s facial traits, which are then compared with the features already stored in the database in the form of a mathematical formula. Identity is validated if real-time collected features match those in the database.
What is the Process of Confirming One’s identity?
There are three steps in the identification verification process:
The user’s personal information is collected in the initial step of identification verification. All of this information is gathered during the account registration process.
Request that the user add a photo.
The user is then prompted to provide a supporting piece of evidence in the form of an official document as proof of identity in the second phase. The Documents include:
- ID Card
- Driver’s License
- Credit/Debit Card Information
Verification of information.
The document template is identified after the identity document is uploaded. The document’s legitimacy is also examined during this procedure. If the information submitted by the user and the information extracted from the document match, the user’s identification is confirmed.
Wrapping it Up
To summarise, identity verification software is used to combat a wide range of frauds. To reduce the risk of criminal actors, several industries that are vulnerable to online fraud should ensure regulated access to personal data such as user accounts and organizational databases.
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