Identity theft is becoming prevalent in most countries worldwide. This is mainly due to the new technologies tossed in the market that are fueling criminal intentions. These advancements are the executing tools for criminals. Criminals perform several types of fraud including account takeover, identity theft, credit card, and online shopping fraud. These threats can not wreak havoc on customers’ financial and personal lives but also bring various risks to businesses’ reputations.
Therefore businesses need robust digital identity verification services to combat criminal intentions and suspicious activities. These ID verification solutions are powered by encrypted artificial and machine learning technology. This not only helps businesses to onboard legit customers but also safeguard their information. Furthermore, these identity authentication services are accurate and less time-consuming making it easier for the industries to prevent various types of fraud.
Various Types of Identity Theft – Bringing Abruption to Legit Businesses
Synthetic identity fraud is commonplace these days as criminals are using every method to manipulate benefits and exploit business processes. These thefts are considered to be the goldmine for criminals as they can reap illegitimate outcomes, leaving companies’ reputations in question. Below is a detailed insight into the various types of frauds that companies should look out for.
1. Synthetic Identity Theft
Synthetic identity theft is fast-growing among the rest of the types. Criminals conduct data breaches to gain information about legit customers, combine it with forged or fake data and use the blended set of information to camouflage their own identity. This is why manual verification has gone outdated as it is prone to various risks like human errors. Plus the verifiers are unable to detect advanced forgeries. Therefore, companies need a digital biometrics identity verification system to scan the biological as well as behavioral traits of customers. This way they can detect criminals during registration and take required actions in time.
2. Account Takeover Fraud
Account takeover is the kind of fraud where customers’ information is compromised to gain illegitimate access to their accounts. These can either be the bank, online shopping platform, or gambling accounts. Once criminals get access to any of these, they can perform monetary transactions, steal the account, and apply for benefits. As per Javelin’s research, identity fraud-based losses have surpassed $16.9 billion over years.
Criminals carry out data breaches to access personal information. But if the industries are incorporating digital identity authentication services, there will be fewer chances of fraud. As evident from Shufti Pro Funding, AI-powered services not only verify customers in real-time but also guard their information.
3. Online Shopping Fraud
Customers can experience online shopping fraud in more than one way. For instance, hacking, data breaches, account takeover, illegitimate registering, fraudulent purchases, and use of camouflaged identities. This is either by gaining access to customers’ accounts or worst of all, by taking over the platform. Therefore, businesses need robust solutions to make sure they are not registering any fraudsters.
The encrypted AI-backed ID verification solutions are seamless and verify identities before onboarding. They require genuine documents for identity and address proof alongside real-time selfies for liveness detection.
4. Credit Card Fraud
Debit or credit card frauds are faced by customers when they lose their cards. It is either because they dropped or left it somewhere, had it stolen, or breached. Criminals are technologically advanced hence they manipulate cards even if it is not in their possession. They gain access to the details and use the cards as they want. After this, they can perform fake transactions, make illegal purchases or finance terrorism.
Therefore, as per Shufti Pro News, industries can employ digital identity verification services to cross-check the information of the cardholder and presenter.
Digital Onboarding and Identity Verification Services – Seamless Customers’ Validation
Identity verification has evolved from just showing your ID at the entrance to submitting documents online for registration. The AI-backed verification has surpassed conventional customer verification as it incorporates various encryption methods. These include accurate screenings, remote verification, and biometric authentication of customers. This way businesses can detect and deter previously mentioned fraud types.
Know Your Customer (KYC) Process
In the past few decades, the digital Know Your Customer (KYC) processes gained enough popularity mainly due to the rising number of identity thefts and related crimes. Furthermore, authorities have revamped the regulations to prevent threats and ensure customers’ safety. ID verification and customer due diligence (CDD) are the minimum requirements in the KYC process. Furthermore, identity authentication is an inherent part of the respective process. This enables industries to authentically register and onboard customers.
To add an extra layer of security, digital services provide multi-factor authentication. It involves document verification alongside biometrics. This makes the process frictionless and robust.
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