Identity theft is very common these days and it is being used for all kinds of crimes that we cannot even imagine. It has been used for credit card fraud, online fraud, terrorist activities, terrorist funding, money laundering and security breaches of many kinds. These days many businesses are using identity verification services to filter their customers base for fraudsters, criminals, and terrorists.
How identity verification helps businesses:
Identity verification services help businesses:
- To comply with the KYC (Know Your Customer) and AML (Anti Money Laundering) compliances
- To detect identity thieves
- To mitigate the risk of credit card fraud
- To mitigate the risk of financial loss due to identity thieves
- To identify the criminals or terrorists
- To verify the identities of the businesses they trade within the B2B model
How identity verification works
First of all the service provider integrates its system with its customer’s system and then start the fraudster/criminal hunt.
- AML compliance and PEPs checks:
Financial institutions and financial service providers use KYC and AML verification services to detect the money launderers and PEPs (Politically Exposed People). The information provided by these people is checked if the person trying to open an account has its name in the money launderers or PEPs list.
- Identity verification of the customer through documents:
The identity of the customer is verified through identity documents like ID cards. It helps to easily and quickly identify the fraudsters and identity thieves. Other documents provided by the customer are verified for default format (prevailing in the concerned region), tempered information on the document, expiry dates of documents and MRZ codes, etc.
- Address verification:
The identity verification services can be used for address verification if the business is concerned about the credibility of the address provided by the customer. Also, geolocation verification is done using the identity verification products.
- Facial verification:
Real-time facial verification is used to verify if the authorized person is gaining access or it is a scammer. The face is verified through 3D detection, color density and real-time liveliness like eye blinking, etc.
- 2-factor authentication:
2-factor authentication is conducted through mobile phone numbers. Either the customer provides the phone number to the identity verification service provider and the service provider verifies it by taking the feedback from end-users, this might be the other way round.
How to choose the best identity verification, service provider:
While choosing your identity verification service provider use this checklist to identify the best out of others:
- Do not choose a new company,
- Choose a company that assures complete data protection compliance related to your region
- Use the service provider that has an updated and integrated database
- Choose the service provider which gives the verification services around the world and not in a specific region, it makes the verification process more transparent.
- Use the service provider which provides faster identity checks (within a minute)
- Lastly, it must be cost-effective
Hence it is evident that the use of identity verification services is inevitable for the businesses these days. It upgrades the business model making it more secure and user-friendly.