There is a sudden rise in Identity thefts attacks among business platforms. Technological advancements have enabled criminals to commit identity fraud with ease. Fraudsters make use of stolen identities to perform online purchases. They order products online by depicting themselves as the verified end-user. An identity verification solution detects such frauds and eliminates them at an earlier stage to save your business. Organizations that lack adequate security checks and identity verification mechanisms are the common victim of identity fraud.
What is Online Identity Verification?
Identity verification is an important security process is used to verify the end-user’s identity and protect the system from unauthorized access. It protects against account takeover frauds and identity scams. Furthermore, it plays an important role in compliance with KYC and AML regulations for financial organizations. Government and business organizations are adopting facial biometrics and document verification methods to verify their legitimate end-users. Identity verification can be useful for businesses to perform remote customer verification and onboarding. With end-user identity verification, businesses can perform background screening to ensure that the applicant is not a bad actor.
Types of Online Identity Verification Services
There are different identity verification mechanisms to ensure better accuracy. Following is the list of cutting edge identity verification solutions commonly used for digital onboarding of end-users:
- Online Document Verification
- Facial Biometric Verification
- Online Document Verification
Artificial intelligence-based document verification solution is integrated on multiple business platforms to onboard legitimate end-users. Whenever the new end-user tries to onboard this system, the system asks them to upload or capture the image of ID documents. OCR technology is used to check the document format and fetch the information from identity documents. The information collected is then analyzed against government verified data records. After successful verification, the results are displayed and end-users are allowed to access the business platform.
The document verification software detects fake documents and rejects them. Following are the types of documents frequently used by fraudsters.
- Fake Documents
These documents consist of missing holograms and standards that are usually present on authentic documents.
- False Documents
Fraudsters make use of stolen identity documents and authenticate themselves as the verified owner.
- Counterfeit Documents
These documents are modified against genuine documents. Occasionally, Scammer changes the font or writing style of the document to bypass the system.
- Facial Verification
Facial biometric recognition utilizes liveness detection and deep learning algorithms to verify the end-user identity through government-provided ID documents. Thus it prevents the threat of spoofing attacks and 3D masks during the process of onboarding. The onboarding process begins the registration process. The system requests the end-user to upload an image of his government-issued identity documents and his live selfie. The facial verification system compares the live selfie against the image on the ID document. If the selfie matches with the ID document image the end-user is verified and he is authorized to access the business services.
Benefits of Identity Verification Services
Protecting Minors With Age Verification
Digital transformation has made it easier for kids to access the internet. They can easily access age-restricted content and products on various platforms. These include alcohol or drug selling, gaming, or dating websites. With the help of an age verification solution, merchants can sell their age-restricted products to end-users that are above the legal age limit. While protecting minors from drug abuse and fulfilling the requirements of age-verification law.
Unauthorized access to sensitive credentials results in financial crimes such as account takeover and credit-card-not-present fraud. Fraudsters trick the security system due to a lack of effective and adequate verification measures. Binary verification measures are not reliable for the identification of fraudsters. Artificial intelligence-powered identity verification is a robust solution for the mitigation of such frauds. With the use of the liveness detection feature, businesses can ensure that an authenticated end-user was present during the verification process. This solution detects the spoofing attacks that fraudsters mainly used to fool the verification measures and identifies them in real-time.
KYC Screening with Identity Verification
With the growing threat of financial thefts, regulatory authorities have made it a compulsion for each organization dealing with money to fulfill KYC regulations. Financial organizations are required to perform Identity verification and customer due diligence to meet the minimum requirements of regulations. Identity verification helps businesses to perform secure onboarding of new end-users and verification of existing one’s. Businesses can fulfill the KYC requirements by adopting multilayered identity verification services or solutions such as facial or document verification. It will ensure a better customer experience while preventing suspicious attempts.