As the world progresses towards an era where document forgery is evolving, businesses face a severe security threat due to the probability of onboarding an unauthorized person. The scammers use advanced identity forgery techniques to breach the company’s data which can’t be detected by manual verification methods. This has led businesses to cease manual identity verification methods due to inaccurate verifications and poor user experience.
Companies should incorporate digital verification solutions in their operations to combat these issues. Digital identity verification is when companies verify an individual’s identity remotely using digital software. This ID verification service provides secure on-site boarding using AI, machine learning, biometrics, and OCR technology. A report states that by 2028, the digital identity verification market is expected to grow from $28 billion to over $83 billion.
Digital Identity Verification Methods
Businesses can optimize their operations by verifying the identities digitally using the following methods:
- Two-Factor Authentication
The two-factor authentication method implies that an individual’s identity can be verified in two steps. In the first step, the user is required to enter their documents to log into their website. The second step prompts the user to enter their additional information via email or phone verification.
- E-mail verification: The company sends a login link to the user’s email, which is used to verify that the user has access to the e-mail account, ensuring their legitimacy.
- Phone verification: The user receives a one-time passcode (OTP) via SMS that they have to enter while logging into the website.
- Biometric Verification
Biometric verification is considered a very secure verification method because it uses the user’s unique physical features. It verifies the users through fingerprint scanning and face recognition technology. It provides enhanced protection to businesses.
- ID Document Verification
This method confirms the legitimacy of the provided ID documents by verifying the user’s passports, driver’s licenses, and official government-issued documents. This data is analyzed through an artificial intelligence algorithm and compared with the authentic issued documents. This method is very beneficial for the banking sector as it helps them in customer onboarding and opening bank accounts.
- Liveness Detection
Liveness detection is one of the most effective and on-demand methods of identity verification. It checks whether the document the user provided matches their live image or video. Through this method, the users hold their cameras in their hands and are prompted to perform real-time movements such as eye blinking, head tilting, and nodding.
- SSN Checks
The social security number (SNN) check helps businesses protect their identities from synthetic identity fraud. Users enter their details on the company’s online portal, and the electronic identity verification system can verify their social security numbers, names, and dates of birth from their databases.
- Social Database Authentication
This verification method uses information available in the user’s social media account databases, such as Facebook or Google. Companies can quickly and easily verify the user’s authenticity using this information.
- Knowledge-Based Authentication
This method implies that the user enters some sort of information that is only known to them. The system will ask a question the users must answer to ensure their authenticity.
Why Should Businesses Integrate Digital Identity Verification Services in Their Operations?
The following are the top reasons why businesses should incorporate online identity verification methods.
- Meet Complaince
Digital identity verification services help businesses comply with the KYC, AML, and counter-terrorism financing regulations. By complying with these regulations, companies improve their trust and reputation among customers.
- Fraud Prevention
Online ID verification services prevent fraudulent activities as the client’s documents are verified using automated techniques. This automated service ensures the authenticity of the customers through liveness detection and biometric verification, which combat the existence of possible scammers.
- Increasing Customer Conversion Rate
As the authentication of ID is conducted digitally, customers find it convenient to get validation of their identity as they don’t have to visit a site. This increases their conversion rate and enhances the company’s reputation as well.
- Legal Support
Digital identity verification services are protected and backed by global AML and KYC regulations. The businesses that use this service are providing legal support to the customers so they can have trust while being verified.
- Increased Customer Acquisition
This service provides legal support and protects businesses against any fraudulent activity, streamlining the customer’s onboarding experience. It also enables customers to recommend the business to others, which increases the conversion and acquisition rates.
Final Thoughts
Digital identity verification services are revolutionizing the way businesses perform their operations. They protect customers against fraudulent activities while increasing customer conversion and acquisition rates. The service backs the company’s profile by complying with legal regulations, which provides an additional layer of security to the business for streamlined operations. Through this service, the company’s revenues are boosted, and the customers have a streamlined onboard experience.
