An upsurge in the cases of identity theft has caused multiple problems for various companies. With new advancements in technologies, the fraudsters are also using techniques which is making it tough for detecting them. The number of data breaches has increasingly gone high due to less reliable security structures of the businesses. According to the Identity Theft Resource Center’s data breach report for 2021, around 1,862 cases of data breaches have been recorded in the year 2021, suppressing the last year’s total of 1,108 in 2020.
Businesses need to find reliable solutions for deterring fraudsters as quickly as possible. Identity verification services can be used as a great help for providing the customers with a seamless experience. Moreover, this will allow them to increase their sales and promote their brand image in a positive aspect.
Putting an End to the Old Methods of Identity Verification
Identity authentication services have seen a drastic change since the arrival of the Covid-19 pandemic. The traditional method of identification has become old and less reliable since it was prone to mistakes. Visiting an office and standing in queues while waiting for weeks for the results to come was a long hectic procedure that created inconvenience for a ton of customers. In this upsurging digital world, people want to generate efficient results while sitting at home. To make this happen, a biometric identity verification system has been enforced to map out the facial features of clients and provide a seamless customer experience. This has helped in the process of identity theft protection facilities by verifying the clients with greater accuracy as the system is based on artificial intelligence technology.
Industrial Use Cases of Digital Identity Verification Service
Multiple industries can gain benefits from the process of digital onboarding of the clients by verifying their identities before any transactional activity is carried out. Some of these sectors are mentioned below:
Online Gaming Industry
An upsurge in the players in the gaming industry has been seen in recent times. The main triggering force behind this is the restrictions that were made during the Covid-19 pandemic, which led the users to stay at home, causing them to find gaming as an ultimate source of entertainment for them. Minors were getting engaged in age-restricted games which have caused many problems such as bullying them by using harsh comments or manipulating them to provide their personal details. To resolve this, a biometric identity verification solution can to great help by verifying identities based on the facial features of the individual.
Several financial frauds have been associated with online casino games such as bonus scams or players unable to cash out due to unnecessary malfunctions by the game. It has caused the player to lose money in huge amounts. Many criminals use the gambling platform for money laundering purposes to carry out illegal activities as per the Shufti Pro News. Dodging the manual identity checks has been easy in the past, that is why online identity theft protection measures need to be implemented for protecting consumers from synthetic identity frauds.
Alcohol and Drugs Industry
Restricting minors by identifying their identities and age can help to protect them from the illegal use of alcohol purchasing. Identity verification services will enable to prevent underage drinking and will prohibit children from accessing any sort of drugs digitally. Companies who sell age-restricted products need to configure that their clients are in compliance with the regulatory measures otherwise they may face hefty fines. The AI-based systems will make it challenging for minors to bypass the identity checks since they will get detected at the initial stage.
The finance industry is vulnerable to identity thefts since fraudsters impersonate an identity for opening an account to transfer illegal money or performing any illegitimate transactional activity. To stay in compliance with the KYC/AML standards, it is compulsory for banks, insurance companies, and financial institutions. Digitally enabled ID verification systems will enable to catch imposters efficiently while keeping them away from the reach of the firm.
Fraudsters are illegally entering countries either through fake identities or using false travel agencies. Many criminals steal the personal information of the clients to avail of free hotel services and can use the space to hide out from official authorities. It is vital to verify the clients before companies confirm any bookings to detect any criminals.
Wrapping it Up
Identity verification services have become a necessity for businesses to combat fraudsters who have devised new smarter techniques to conduct identity thefts. Forging the documents, and faking the identities to get and conduct illicit crimes is increasing worldwide. For protecting minors from accessing age-restricted products, it is essential for a business to verify their identities digitally which will provide accurate results swiftly. Due to its high reliability, a lot of companies are investing in these robust ID verification services as evident by Shufti Pro Fundings. Thus, identity verification is the ultimate solution to keep fraudsters at bay.
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