The digital marketplace is sophisticated. It provides your business with an opportunity to work remotely. You can enable your customers to use their identities to purchase or leverage your services. But it also poses several threats.
Fraudsters are stealing identities and creating synthetic ones to commit scams. It is also leading to an increase in the number of cyberattacks. During the recent pandemic when the digital business concept was at its peak, the cyberattacks were also increasing alarmingly.
For many companies, digital identity verification solutions proved to be a great answer to all such problems. But is it essential for businesses to implement such solutions? Well, it is, for the following reasons:
To Reduce the Number of Digital Frauds
Identity verification and authentication solutions can significantly bring down digital frauds. They blend many modern-day technologies like Artificial Intelligence (AI), biometrics, and Near-Field Communication (NFC) to detect and mitigate security threats.
Synthetic Identity Frauds
Synthetic identities are one of the fastest-growing frauds. It refers to blending real and fake information to create identities of people who do not exist. Identity verification can address this growing concern by verifying people in real-time. For instance, the solution you find on the www.au10tix.com website uses deep learning technology to scan a photograph and match the details with biometrics to find any deviations.
NFC further backs the solution to ensure that the image is taken during verification. It then scans identity documents to verify the details and alert your team about the same.
Cyberattackers target every company and individual, whether a small firm or an enterprise. Gone are the days when they attacked larger companies for more enormous ransoms. Hence, if you think you are not a target, think again.
Most of these cyber attacks occur due to illegitimate access. Using identity verification solutions can prevent unauthorized access. Cybersecurity teams can make it a part of their Multi-Factor Authentication (MFA). It means that anyone wanting to access any critical systems physically or virtually should verify themselves to ensure optimal security.
As most digital payments occur online, it gives more opportunities to fraudsters to do money laundering fraud. With AI, identity verification solutions can prevent fraud by continuously monitoring customer activities. They can keep track of all activities on a user account to detect deviations and alert suspicious behavior to prevent money laundering.
While enhancing security is tempting enough to implement an identity verification solution, there are more reasons to do so.
To Enhance Customer Experience
Customer experience has outperformed price and product to become the most prominent brand differentiator. It is evident that you need to focus on it to survive the fierce competition. You can lose customers quickly if you don’t focus on building experiences. But focusing only on experiences can compromise security. The best example here is registration forms.
Many businesses use a registration form to onboard new customers. Larger forms can impair customer experience. Suppose you are an eCommerce store. When a customer lands at your store and has to fill a large checkout form, it can lead to abandoned carts.
Similarly, creating an online account with many businesses like banks require customers to complete Know-Your-Customer (KYC) process, which can be lengthy if done manually.
Identity verification solutions can streamline the onboarding or checkout processes. They can use deep learning to scan and match selfies and identity documents to verify customers within seconds. Hence, you don’t have to compromise between a seamless onboarding process and security.
To Increase Customer Trust and Loyalty
A customer’s trust and loyalty towards your business depend on experiences and security. Most consumers don’t know how you store and use their data. But they want you to keep it secure. Hence, a damaged reputation is the most significant consequence of a data breach.
Reducing the chances of cybersecurity using authentication solutions enhances customer trust. However, trust is never a one-way thing. While ensuring that your customers can trust you with their data, you also need to consider that you can trust them. You need to make sure that they are who they claim to be.
Digital identity verification solutions can help protect your business from fraud customers. Take the example of counterfeit documents or payments. You will come across several scammers who will try to use fake documents to go through the KYC process. They may also do bogus transactions, leading to millions of chargebacks.
As you allow online purchases using credit cards, many fraudsters can use it as an opportunity to commit scams through the “card-not-present” buying method. If you can’t find the fraudster in such cases, you become liable to pay back the scammed amount. Moreover, besides the actual amount, you also have to pay the transaction fees, customer acquisition costs, and other additional costs, making it a significant amount.
Verification solutions can quickly detect synthetic documents and alert suspicious activities. You can use them to ensure all the customer details are accurate and true. Doing so will eliminate the chances of counterfeit payments. Hence, besides building trust, you will also save on millions.
To Comply With Regulations
Based on the location and industry of your business, you need to abide by several regulations. Some regulations like General Data Protection Regulation (GDPR) or Payment Card Industry Data Security Standard (PCI DSS) want you to keep customers’ data safe. Some others, like KYC, mandate collecting customers’ data before onboarding. Digital identity verification solutions can help you comply with all such regulations.
Most compliances are created around collecting, storing, modifying, and using data. Ignoring or not abiding by these mandatory compliances can result in heavy fines and reputation damage. Both these consequences can force a complete shutdown. Using an identity verification solution can eliminate unauthorized access to data to keep it safe.
As technology grows, so should your security measures. A secure business ensures happy and satisfied customers. With the need to increase security and ensure complete digital trust, identity verification solutions have become vital. Hence, it is time to act fast and implement an authentication solution in your business if you haven’t already.