With time the businesses are also becoming digitalized to make themselves self-sustaining to meet the modern world challenges and to take the end-user experience to the next level. Implanting advanced technologies for human development has opened new gateways for businesses. Moving into the modernized world, cybersecurity and data privacy is of great interest and over time these concerns are rising. The businesses and institutes which tend to implement regulations regarding customer data security will become successful. Technology-based online identity verification solutions will be life saviors for businesses to fight the war against identity theft frauds with promising results.

Innovate AI-Powered Identity Verification services

The world in which we live consists of billions of people with unlimited data. Through various means, personal information is readily available on social media or other sites and can be easily accessed, hacked, or by anyone. Due to poor security, such sensitive information can be manipulated by imposters which can cause the life or reputation of people at stake. As the advancement of technology is happening, solutions to real-world problems are coming into shape. If we look into the other side of the story, imposters use the same technology to run their criminal activities. Cybercriminals deeply look into the system and find the loophole to exploit them or to get access to the sensitive information of the businesses and the individual people. To put a stop to such activities of criminals and to take the situation into an uncontrolled environment, customer identity verification services are in the market which provides effective means to validate the identities of potential customers. Identity verification involves both KYC and AML practices that businesses are obliged to implement as per regulators’ laws.

It can further be expanded by services, like knowing the identity of a chinese citizen, confirming if the customer is who they say they are, and so on.

Workflow of Identity verification process

• Gathering Identity Information

It is the stage to verify the identity, the personal information of the customer as identity card number, date of birth, etc.

• Uploading identity verification document

The customer is obliged to upload the scanned copies of the photos of the government-issued identity documents which provide proof of identity through document verification.

• Information/data verification

After the end-user has entered the information along with the identity document scanned copies then both are matched and authenticated. After the successful verification, the results are stored in the clients’ back office.

Common types of frauds

• Complete Impersonation or taking over the account

Cybercriminals mostly target social media accounts because social media is the reserve of data. Billions of data are placed on social media which is pretty much an easy task to hack and breach. Malware or phishing attacks are the most common fraud to take over accounts. After gaining control of the accounts the fraudster hides them under others’ accounts and does various illegal activities which affect the actual account holder’s reputation and may lead them to bigger problems.

• Cyberbullying and harassment 

The cyber attackers usually make fake social media accounts, by taking someone else’s identities to commit their illegal activities such as bullying, harassment, and even worse ransomware. Thus the victims are badly affected due to such a situation and their mental health may also be disrupted.

Use cases of identity verification 

• Crowdfunding

Crowdfunding involves money transactions thus the need for identity verification is utmost in this case. The people which tend to raise the donation or the people who want to donate must be verified and have a legitimate identity. Thus this is beneficial in deterring the multiple frauds

• Gaming business 

The gaming business has grown at a massive scale with the technology boom, but with the loophole between the security checks, online gaming frauds are increasing exponentially. Among them, online identity verification theft is the most prevalent one. To mitigate such fraud biometrics identity verification systems must be implemented by the businesses.

• Telecommunication 

The telecommunication business is also under the impact of online identity verification fraud. Identity verification is to be done effectively in order to stop the telecommunication frauds such as illegally selling sims and their illegal use. 

Final thoughts 

Identity verification plays a key role in all types of businesses. The fate of the business relies on the clients which they tend to onboard. Thus the identity verification system enables the businesses to get to know the actual image of the client before onboarding in order to mitigate the risks of fraud.