The emergence of online activities led businesses to adopt advanced security services for automated identity verification. Companies face severe threats of identity theft online because scammers have found various ways to breach company identities and confidential data. This increases the need for identity verification software in businesses’ daily operations. A 2022 survey shows that 35% of e-commerce merchants in the United States faced online fraud during the address verification stage.
Businesses use automated identity verification software to verify the user’s identity through verification software. It is used to ensure that the data that’s appearing is actually coming from a human being.
A Quick Glimpse of Online Identity Verification
Online identity verification solutions allow companies to use artificial intelligence and advanced algorithms to authenticate the identity of users. Various businesses recruit different authentication methods, such as using a Social Security Number (SNN), IP address, or biometric verification, depending on the nature of the business being delivered.
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Methods Of Automated Identity Verification
Several methods are available for businesses to incorporate automated identity verification in their systems. A few of the most widely used methods are as follows:
- ID Selfie Verification
Selfie identity verification is a method where the system instructs the users to submit multiple selfies, which are then compared to the ID photo issued by the government to check the authentication of the person’s identity. This method is beneficial for the financial business sector because it uses know-your-customer and anti-money laundering commands that require customers to upload their selfies for verification purposes.
- Biometric Verification
Biometric verification is the process of verifying individuals based on their biological aspects, such as through face and fingerprint scans. Biometrics are a helpful way for businesses to protect their identities because they are unique for everyone and very hard to breach. This method is crucial for the banking business sector because it can be used in their logins to prevent unauthorized access.
- Behavior Analysis
Behavior analysis is the process of studying an individual’s behavior by analyzing why they behave in a certain way. Through behavior analysis, businesses can understand and predict the user’s behavior and check whether or not their activities appear legal. Behavior analysis happens in the form of velocity checks to prevent fraudulent activities in businesses, which analyze the actions of users over a certain time frame.
- Database Verification
Database verification is the process of verifying and analyzing the user-provided data, including Social Security Number (SSN), name, and date of birth, and later comparing it to the known data available in the database. Through the Internal Revenue Service and the Department of Motor Vehicles, the database verification process is managed.
- Digital Document Verification
Cybersecurity threats have become severe for businesses as the world progresses towards technologically advanced solutions. Companies now prefer using online document verification solutions. This validation method enables companies to gather additional documents like the employment history, business documentation and employee addresses in addition to government-issued IDs. A 2022 study shows that 44% of global e-merchants use online identity verification services to detect fraudulent activities.
Benefits of Online Identity Verification Solutions
Businesses can use ID authentication solutions that can be very valuable for their operations. A few of the benefits are mentioned below:
- Compliance With Regulatory Requirements
Online identity validation solutions can help businesses to meet the standards and regulations of the industry. Some industries, including fintech, healthcare, and e-commerce businesses, are required to authenticate the identities of their customers in order to prevent any illegal activity like fraud and money laundering. It simplifies the process of know-your-customers and anti-money laundering because they realize that failure to do so will seriously damage the company’s image.
- Fraud Prevention
The utilization of biometric scans, document verification, facial recognition, and government-issued identity cards can reduce the probability of financial fraud and identity theft in business operations. This can create greater customer trust, which is invaluable to a company’s reputation. It also helps businesses to prevent potential losses that may occur in the long run.
- Efficiency and Speed
Automated identity validation solutions can increase the speed of data verification and can verify customer identities efficiently. This process leads to a practical onboarding experience, resulting in general customer satisfaction. Businesses can save operational costs by reducing the use of manual methods.
- Competitive Advantage
With the development of Artificial Intelligence, data analytics, and biometrics, businesses that can grab these opportunities can have a competitive advantage over other businesses, which can help them increase the company’s reputation.
Summing Up
The need for automated identity verification services is emerging significantly on an everyday basis. Businesses can use these services to alleviate account takeover and identity theft threats. The addition of modern technology and biometrics can promote a smooth customer experience and allow companies to carry out their operations while maintaining high data security. By providing companies with authentic verification, their goals can be accomplished effectively and securely.
