The data we store and use online has become compromised in recent years, with record-breaking data breaches becoming a more common story than we should feel comfortable with. More than 5 billion records were leaked and compromised in 2020 alone, which does not bode well for your privacy and security.
We’ve all gotten used to how convenient our information is accessible online, and much of our online activity relies on this ease to sell us online services and ads. Figuring out how to secure their systems from such data compromises is paramount for these businesses, as worries about data security will likely hurt their bottom line. This often means investing in systems that prevent fraud and anti-laundering measures such as KYC compliance.
In this new age of the internet and technology, however, there are new ways companies and businesses can verify their user’s identities using identity verification software while making it secure and safe to do so. Keep reading to find out more.
Current shifts in trends on how to authenticate identities
Many companies are well aware of the security compromises made by using older forms of authentication. Thus, many have taken to adopting biometrics and identity management, as well as blockchain and even artificial intelligence. Adopting these technologies early on means that they’ll be able to stay ahead of the curve and maintain their security systems integrity, which protects their business prospects. These can come in the form of face-matching, liveness detection, as well as management of data through automatic fraud scanning and data extraction.
This is becoming easier and easier for companies to make the switch to, as well, meaning that the adoption of these technologies is skyrocketing.
Why should you focus on identification authentication?
There is a slew of reasons businesses are switching to these newer technologies.
Develop your prestige
Businesses are heavily reliant on the way consumers view their branding and products. After all, consumers are the ones who are giving money to these businesses, which helps them survive. Thus, it is important to ensure that consumers feel a sense of trust in your business. Many businesses have seen massive stock plummets and users pulling out from the onslaught of data breaches — a problem that even government institutions face. Having a thorough and comprehensive identity verification process for your consumers may reduce the ease of convenience in setting up an account. Still, consumers will often remain partial to your service if they trust you to keep their data safe from breaches and attacks. Identity fraud, black market exchanges of financial information and even blackmail are becoming more common on the internet, and consumers are always looking for ways to shield themselves from such circumstances.
Businesses can often find it expensive to build these new verification processes from the ground up, which results in them outsourcing the work to third-party verifiers who have invested heavily into providing a secure and safe authentication system. However, this also means that businesses do not have to dedicate significant resources to verify documents and information. Instead, they can divert their attention to developing and selling their products and services.
Being loyal to your customers and their data will make them loyal to you, meaning they will be your advocates in a market that is currently becoming more saturated by the day.
There have been several high-profile cases of businesses being given heavy fines for failing to comply with regulations regarding data privacy and money laundering in industries ranging from technology to even banking and financial services. Save for a few select companies. These fines are very likely to cripple any businesses that are struck with one, meaning that it is vital that businesses remain compliant with these regulations as much as possible.
AML is a series of laws, regulations and instructions that aim to separate illegally obtained money from legal money, helping combat money laundering activities. This, in conjunction with KYC, which helps businesses identify customers and assess their interactions for signs of illegal activity, helps protect businesses from being labelled as conspirators or allowing such activity to happen. To achieve this, businesses are moving towards adopting identification verification software and good practices to stay compliant with AML and KYC stipulations.
Protection from fraud
Credit card fraud is a huge industry online, and there are a substantial amount of identity fraud cases that are tied up with credit fraud activities online as well. Stolen credit card and identity information is sold and traded online, which will then be used by criminals to apply for new accounts and even receive government benefits, allowing them to quickly receive a large amount of money before abandoning the card and dumping the debt on the original person on the actual person.
This does not just affect consumers, as businesses have to deal with the ramifications of chargebacks — when businesses are charged for the transaction a fraudster makes on someone’s card and the owner of the card cancels the transaction. This is why many businesses require two-step authentication and other verification methods before a transaction is made. This also prevents people from attempting to receive the product and claiming they have never received it, stopping their attempts on trying to get their money back and keep the product.
With that, we’ve come to the end of this article. New technologies in the data and identity verification sphere are popping up and improving every day, meaning that there are constant developments to ensure that businesses and consumers remain safe and protected from fraudulent activity. These new technologies will help alleviate the concerns of consumers and businesses regarding data breaches and identity fraud. Implementing comprehensive and thorough identity verification processes while reducing impediments to convenience is vital to ensure services remain consumer-friendly and appealing.
Suppose you’re a business that is considering implementing these new technologies into your workflow. In that case, it is a great idea to consider consulting third-party verification services that can help you seamlessly integrate these improvements in security into your company.
You may also like: The Beginner’s Guide to Identity Theft Protection Companies