Using Identity Verification Against Fraud

In 2020, US financial institutions are expected to invest $599 million to counter transaction application fraud damages. Applications and identity theft are threatening to financial institutions and are driven partly by over 13 billion digital files that were corrupted or compromised since 2013. After first-party scams, in which people deliberately misrepresent their identities, stolen information collected through privacy violations is among the top three causes of application fraud that might have been avoided through the use of identity verification solutions such as Data Zoo.

How can identity verification solutions help your business against fraud?

To deter falsification in a transaction, organizations must detect fraud or fake identification documents in real-time at the start of opening a new account. Institutions are also under strain to digitize opening accounts so that clients can set up an account entirely online or through a smartphone. Therefore, to accomplish effective fraud detection and prevention plan, companies need to align protection and customer experience, and this is where identity verification comes in.

The following are some features a credible identity verification provider should offer:

• Capturing features as ID files or biometrics
• Identification data validation to confirm the authenticity of ID records
• User verification to confirm the person’s identity by providing ID documents through biometric data or third-party authentication reports collected for audit
• Auto-filling forms for convenient user registration and minimal manual discrepancies

How do identity verification solutions work?

There are millions of databases across the globe that can help validate the identification of people and businesses. Government databases, credit agencies, and registries are just some conventional sources. Meanwhile, emerging tools such as mobile data providers, biometric data, social networks, mobile applications, and the Internet of Things (IoT) provide a different data set to further complete the circle and to recognize and validate more people all over the world.

By compiling accurate and comprehensive data repositories and validated identity verification techniques, the modern world is becoming a better place for users to access products and services from anywhere. Using a more comprehensive system and all those access points linking to both the younger and more developed data sources, you will know precisely who you are conducting business with. Your business will also fulfill the requirements of AML and KYC and reduce the customers’ risk of misconduct and other fraudulent acts that may lead to monetary or reputational risk.

Immediate access to data often helps a lot in risk mitigation. For example, businesses are putting off their Customer Due Diligence (CDD) process unless a trader goes above a specific dollar limit. It is mostly because the traditional approaches of identity verification are manual, cumbersome, and demand a great deal of human labor.

Instant identity verification systems, such as those from Data Zoo, enable businesses to put identity verification at the start of the deal process while still making it convenient for you to check the validity of your current clients. As a result, you can easily understand your overall customer base and anticipate any threats that consumers can present.

Through conventional government data outlets, credit agencies and financial firms to new and innovative domains with information available through mobile applications and smartphones, and other technology-driven interactive devices with biometric functionality, a digital treasure trove of opportunities is accessible.

Using this information to identify, authenticate, and verify digital identities helps create an internet and mobile trust foundation. This approach provides a more incredible opportunity not just to help the company fulfill its compliance requirements, but also to help individuals get access to the resources they seek.