Real-Time Identity Verification – The Answer To Eradicate Cybercrimes

Every industry is now trying to process through digital platforms by decreasing the workload on employees. There is no doubt that Covid-19 was a disaster considering the damages it has done to mankind. But one upside of the pandemic is that it has advanced the use of digital platforms. A huge shift was seen in the users during the last year. Fraudsters followed the merchants and consumers and found new ways of committing digital frauds. Real-time identity verification services are the answer to combat any type of online fraud. 

Online Identity Verification 

Online identity verification refers to the process of verifying customers, business partners, and anyone the companies may interact with while performing business tasks. The purpose of authenticating customers is to ensure that firms onboard only legitimate consumers. Identity verification can allow organizations to know they are interacting with genuine users. 

Conventional methods of verifying customers were not sufficient and did little to help businesses to properly verify their customers. Manual methods were tedious for both the employee and the customers. In this age, with the affordability of mobile phones and the internet, where everyone has become a digital user, customers now expect to have a robust and accurate online experience. The expectation has put businesses under pressure to have advanced technologies in place to fulfill customer needs. While utilizing identity verification services, companies can protect customers’ data and can have them experience fraud-free professional relationships.  

Customers can be identified digitally by using biometric and ID document verification methods. Facial recognition is the most widely used technique in biometric verification, employed by banking and tourism industries. Authenticating consumers through ID documents is also a liable process utilized by a lot of businesses.

Industries Employing Identity Verification checks 

Compliance professionals have designed (Know Your Customer) KYC laws to verify customers in real-time. Onboarding legitimate customers can be a keystone in eradicating fraud. Businesses perform KYC at the time of customer onboarding. The users are asked to show their government-issued ID documents that can be ID cards, driving licenses, and passports. Facial biometrics is also sometimes performed to authenticate customers’ identities. 

  • Cryptocurrency 

Online merchants are now looking for ways to adopt cashless payments. Cryptocurrency like bitcoin is the tool to fulfilling their dream. Cryptocurrency is finally emerging as the mainstream market driven by the impact of Covid-19. But as vendors are happy to finally have access to digital money, there is bad news attached. Cybercriminals also love electronic money. In such a climate where business owners do not have a strong grip on cryptocurrency, fraudsters are taking full advantage by committing illegal activities. 

The main reason fueling up cybercrimes on cryptocurrency is the fact that businesses lack KYC compliance in place. The fact that bitcoin frauds can lead to illicit activities like money laundering worsens the situation. 

KYC compliance is designed by international lawmakers and is applicable globally. Business entities working in different regions sometimes face complications complying with their own and KYC regulations. Therefore, when getting a chance, merchants slip from adhering to Know Your Customer rules. Such acts cause them to face problems in the name of online fraud. 

  • Gambling 

The constantly increasing gambling industry also needs to have identity verification services in order to make sure they only onboard legitimate customers. Money laundering can be a prime reason for fraudsters to enter gambling sites. It is easier to invest money in a platform where everyone rolls their money to gain instant benefits. Deploying KYC checks to verify the identity of players can ensure gambling websites have legal players. 

Benefits Of KYC Compliance To Businesses 

  • Know Your Customer services can help any type of business combat online fraud. By verifying customers digitally and with a greater accuracy rate, businesses can expand their brand name. 
  • Companies can enhance their user experience by respecting the customers’ credentials. 
  • No wonder, when businesses provide customers with valuable experiences, the customers can be proved as a source to generate revenues. 
  • Responsible organizations when complying with KYC regulations, and having their customers enjoy a seamless interaction, can earn a good reputation for themselves which can ultimately help merchants enhance their productivity. 
  • Along with building trust and generating good revenues, adhering to laws can assist industries from paying hefty fines and penalties. 

Conclusion 

To verify customers’ identity businesses employ real-time identity verification services. Usually, identity is checked at the time of customer onboarding. Genuine customers can be distinguished from the ones with synthetic identity by using facial recognition or ID verification. Compliance professionals have designed Know Your Customer (KYC) compliance which businesses use to identify their clients to eliminate online fraud. Almost all businesses like online gaming, gambling, alcohol, travel, and finance comply with KYC laws to provide their customers with the best experience. 

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