Identity theft is a heinous crime that has raised many concerns in various sectors. Businesses have been facing huge deficits due to synthetic identity fraud. This has created issues for firms in delivering their customers a seamless experience. Implanting new technologies have opened profitable opportunities for multiple companies. Yet there are some loopholes that still remain which provide chances for fraudsters to execute illegal activities. Cybersecurity and data privacy possess a great interest in protecting firms from such illicit incidents. Checking the background, and revealing the true identity of an individual has become necessary. Implying proper regulations for combating them is essential for uplifting a brand’s reputation. This will save the company from facing any hefty penalties. Technology-based identity verification services can play an integral part in fighting against identity thefts while generating promising results.
Various Methods of ID Verification
With digitization emerging at an increasing rate, many offline business operations have shifted towards working online through digital platforms. For enabling a secure digital onboarding process, companies must initiate stringent identity authentication services. This will allow them to fulfill the needs of customers without any potential risks of data breaches. Different types of methods have been introduced into the market for Id verification, some of them are mentioned below:
Knowledge-Based Verification
It is relatively based on an older method of obtaining results about a verified identity. Knowledge-based identification comprises some questions which are only known to the user. Many financial infusions such as banks have incorporated this method for many years. Users who are requesting for opening an account or any other relevant task can be asked questions regarding their name, age, etc. Fraudsters have devised multiple ways of dodging these verification checks. Generally, they trick the organization by telling them false information to gain access illegitimately. Therefore, for dealing with the concerns of identity theft protection, users onboarded through using the KBA method cannot be blindly trusted.
Two-Factor Identity Authentication (2FA)
Another identity verification service that adds an extra layer of security is the two-factor authentication service. Inserting a password or a PIN code as an additional feature for verifying a user’s identity is essential. Previously, Individuals were accessing their accounts by filling in information about their username and password. But with two-factor authentication, users are required to enter details about the code being sent through an SMS to their mobile number. Although it is an effective method, many crooks hack the details of multiple users causing illicit damage to them.
Biometric Identity Verification System
With increasing technology, biometrics has become a reliable source for identity authentication. These ID checks on identifying an individual based on their unique facial features which are tough for the fraudsters to fake. This can be a fingerprint, facial and iris recognition, etc. With the usage of biometrics, minors can also be protected by executing an age verification solution for restricting them from accessing age-oriented products. Due to its robust solutions and immense popularity, many online businesses are showing reliance on them for protecting firms from falling prey to the attack of impersonators. Similar to Shufti Pro Fundings, Multiple companies are investing in improvements and making it more secure in keeping fraudsters at bay.
Different Kinds of Identity Thefts
Financial Identity Theft
Businesses that consist of tasks of cash involvement at an increasing rate are more prone to become targets of fraudsters. Misusing the credit card of someone else to make illegal purchases can result in the degradation of the firm. Moreover, banks have to pay fines where large amounts of money are involved for their customer’s stolen funds. Governing authorities encourage enterprises to incorporate identity verification services for deterring scammers.
Synthetic Identity Fraud
Many criminals use the trick of synthetic identity fraud to impersonate an identity to enter areas from where they are prohibited. They use a piece of genuine information and combine them with a part of fake details to create a synthetic identity. In accordance with Shufti Pro News, these types of crimes are difficult to detect since some of the data present in them is authentic.
Wrapping it Up
Identity verification services for today have greatly helped the business to improve its overall customer experience. When criminals are using technologies to carry out illicit tasks, it is feasible for companies to stay one step ahead in combating them. Once a scammer gets access to the company, it can create various problems. Identity verification services have improved with time. Companies enforcing biometric identity verification systems are securing their digital onboarding process more accurately. It can significantly help in minimizing the crimes like synthetic identity fraud and financial identity theft.
