Technological changes are bringing innovations to the world’s operations along with rising various challenges. Criminals are using advanced manipulation tools to onboard, register, and dodge identity authentication processes. Moreover, they commit cyberattacks and data breaches to portray someone else. According to GovTech, there were over 5 billion data breaches in 2020.
Industries need to employ robust identity verification services that are far better than traditional methods. Here, AI-powered identity verification helps industries identify imposters at the time of registration. Online ID verification services are helping industries in numerous ways to combat criminal threats and ultimately comply with the KYC and AML regulations. Further benefits are covered in this blog with the type of processes digital identity verification solutions offer.
Identity Verification Services – Types of Methods Used for Accurate Identification
Identity verification falls under the regulatory obligations that authorities enforce. According to the Know Your Customer (KYC) guidelines, industries should verify customers during digital onboarding by asking for their name, date of birth, proof of address, and other credentials. Here, the digital solutions use the information to cross-verify within databases and accurately authenticate the customers. There are further different types of services that digital identity verification methods offer including:
The AI-powered verification services detect the liveness of customers by asking for a real-time selfie or video. This process further ensures that the customers are present behind the screen.
Industries are mainly adopting biometric screening for customers’ verification. This is because criminals use software like 2D or 3D masks and fake documents to trick the verification process. However, they can not fake the retina or DNA patterns.
Govt-issued Documents Validation
Along with liveness detection and biometric verification, AI-powered identity verification services validate the customers’ documents. Government-issued and original documents have specific traits like holograms, ink type, watermarks, signatures, and stamps. The OCR technology offered by AI solutions validates these features and identifies whether the documents are fake or original.
Identity Verification Across Databases
Another accurate service AI-powered solutions offer is access to global databases. As businesses are spreading their operations to onboard global customers and firms, they are often unable to verify their real identities. Hence, digital services enable industries to verify customers across global databases.
How Encrypted Identity Verification Solutions Benefit Global Industries?
Digital identity theft protection and customer verification solutions are venturing beyond traditional methods. This is because they are more accurate, seamless, convenient, and involves fewer resources. Furthermore, these solutions involve less time which is why industries are readily incorporating them in their verification processes. Moving on, industries using AI-enabled identity verification solutions are sure to reap the following benefits:
Detects Fraudulent Attempts in Real-time
Criminals are targeting every industry from finance to healthcare. They either open fake accounts, launder money, finance terrorism, apply for illegitimate benefits, access age-restricted products, or commit identity fraud. Here, according to Shufti Pro News, the most common is the use of fake documents and identities to onboard digital platforms. These consequences lead to reputational damages along with a lack of trust among customers and a rapid drop-off. Worse comes worse, industries will fail to comply with KYC and AML regulations and will have to face hefty penalties.
Therefore, industries need to use synthetic identity fraud prevention services to restrict criminals from causing exploitations. The liveness detection here verifies the identity claim of customers by analyzing their backgrounds and surroundings. Adding to this is the OCR technology that accurately validates the identity documents. For instance. ID card, passport, green pass, or driver’s license.
Offers Remote Onboarding While Improving Customer Experience
Industries are expanding their services to global customers and with this, they offer remote onboarding. However, industries can not leave identity theft protection and accurate customer verification behind. AI-powered solutions automate the process by allowing customers to submit their documents during the time of registration. Later on, the system extracts required information and verifies it within the global databases.
This way, customers won’t have to wait in long queues or repeatedly visit the offices for verification. Ultimately, industries can not only ensure regulatory compliance, and improve customer experience but also provide security and privacy to clients. Shufti Pro Funding indicates that industries need robust identity verification services to verify customers and prevent criminals.
Industries need to employ accurate and robust identity verification systems for various reasons. Firstly, to comply with AML and KYC regulations, secondly to perform authentic ID verification, and lastly to enhance customer experience. For this, industries need to inculcate robust AI-powered identity verification services. These are less prone to human errors and verify customers in minimal time.