With the rise in technological advancement, cyberattacks have also taken a toll on the world. This has resulted in the rise in identity theft and business entities are facing an immense amount of identity fraud. The COVID-19 pandemic made the situation worse. The business entities moving to online operations made them more vulnerable to fraudsters. The sophisticated fraudsters took advantage of the people by stealing their important credentials and using them to steal their identity. This affected the online business as they had to deal with fake identities. In order to secure them from identity thieves, an online identity verification solution can be used. We will discuss the importance of online identity verification in fighting fraudsters in this blog.
The Consequences of Identity theft
Cybercriminals have adopted various ways to attack the vulnerable population. Not many people are aware of the security gaps in the technological world and this is what sophisticated fraudsters take advantage of. Identity can be stolen through a phishing attack or malware. The fraudsters send an official-looking email to the victims requiring them to fill in their personal and sensitive data. The victim does that thinking the email looks legit and official and remains unaware of the cyberattack that they have become the victim of. Once the fraudster has the data, they use it to steal the identity of the person and use that to gain all their benefits including their pension claims, employment claims, their tax refunds, their medical benefits, and even access their bank accounts.
The business entities catering to the identity thieves can end up losing not only their product but also have to face consequences in the form of lawsuits. Once they sell a product to the identity thief, either they never get paid or they get paid by the victim’s money who reverses the transaction and the company has to face the law. If they end up reporting the theft, the law enforcement authorities fine them for not being compliant with the proper identity verification measures for KYC/AML. These measures require the companies to verify all their clients before onboarding them and require companies to have a robust identity verification solution for digital ID authentication.
Online Identity Verification and its Types
Most companies used to apply the manual method of verifying the identity of the individual but now the digital world has moved them to adopt the digital solution. The digital ID authentication solution has various types.
Listed below are some discussed in detail:
- Face Verification
This is the step that performs the identity verification through verifying the face of the person. The online identity verification is performed when the end-user takes a selfie to submit it to the back office along with the ID document. The AI-powered solution verifies the authenticity of the selfie and ensures the identity by matching the ID card photo against the selfie.
- Document Verification
This solution trains the AI with various types of documents to ensure the authenticity of the document. For online identity verification, the end-user submits the ID document picture and the AI scans and analyzes the ID document to ensure that it is legit and not doctored or stolen.
- Address Verification
This solution verifies the address as well as the identity of the end-user. The end-user is required to submit a document that contains their address along with an ID document. The address is verified against the ID document to ensure the legitimacy of the address as well as verify their identity.
Benefits of Digital Identity Verification
This solution based on AI is a highly accurate solution that verifies the identity in no time. It streamlines the IDV process and it’s so much better than the manual process that takes a lot of time for the end-user in the lengthy and tedious process of IDV. With humans, there is always a chance of error and this is why the integration of HI and AI makes the whole solution more accurate and more reliable. It helps the companies to fight fraud as well as enhance their customer experience. Satisfied customers mean success for the business and this is what this online identity verification solution aims for.