As the world had gone digitized, the number of identity thefts, account takeovers, and data breaches, has increased. If we look back on the previous years, data breaches showed more than 5 billion records in the year 2020 alone. So, businesses are looking for reliable ways to verify that an individual is who they claim they are. To do it quickly without any road bumps is crucial for the success of any business and company. So, they need strong identity theft protection solutions.
Avoiding and protecting fraudulent activities is not only the motivating factor in an identity verification solution but there are other aspects that must be taken into account such as compliance with the regulatory bodies and providing new clients with an access to digital services. Here is how ID verification helps different businesses.
1- Improve Brand Reputation
A good reputation is really important for all businesses and maintaining a positive image where there is a variety of consumer choices is quite challenging. It is easy for the clients to go from one brand to another when they do not get what they demand. With an increasing number of data breaches, the clients look for those businesses that are trustworthy so that their data remains safe. And when a client has an emotional attachment with the company, they not only become its regular buyers but also tell others about that brand which builds its positive reputation in the market. Thus, with identity verification, the company can signal that it is working towards building trust in what is becoming insecure in the digitized world.
2- Avoid Costly Fines
In the year 2020, fines due to non-compliance with MIFld, Know Your Customer, data privacy, and Anti Money Laundering regulations in the financial institution account for 10.6 billion dollars. No business wants to spend their money on such huge penalties and fines which is why AML and KYC are so important.
Both go hand-in-hand, AML refers to the procedures, laws, and regulations that have been constructed to stop showing illegally earned money as a legitimate income. Whereas, the KYC process verifies the identity of clients during the onboarding procedure to access their risk for illegal activities. Adhering to these two identity verification solutions is important to avoid fines and in the worst scenarios, imprisonment. Thus implementing identity authentication solutions is what makes the business verified identity and stay compliant with regulations and prevent them from paying heavy fines.
3- Avoid Costly Chargebacks
Among the total number of identity frauds that occur every year, credit card frauds make a great portion. This is because people use credit cards that are not theirs to make transactions. Once the real card owner finds its card being illegally used, they ask to cancel the transaction. And as the business does not who the real fraudster is, they have to pay them the money and this whole process is called chargebacks in the finance world. Unfortunately, it costs the businesses that offer the facility of credit card payment. Thus, costly chargebacks can be prevented by a robust online identity verification system in place.
4- Avoid Fraud
Money laundering and other financial crimes are increasing day by day and destructing businesses. Such criminal and Synthetic identity fraud activities are a serious concern for all businesses especially those with modest income. Even a small amount of laundered money means the end of the road no matter how large or small a business is. So, the businesses are shifting towards risk-based models that incorporate identity verification services to access the users that could pose a threat to the company.
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5- Improve Customer Experience
Today consumers need a great customer experience from each and every business they buy from. They not only need superior security but also a frictionless identification experience where they do not have to give so many details and their identity is verified quickly. Thus, Biometric identity verification service such as liveness detection, biometric recognition, and automatic scanning provides the customers with a smooth verification procedure. When there is greater security and improved customer experience, it helps the company in customer retention as well as building a great reputation in the market.
Final Thoughts
Data breaches and Identity theft have scared consumers. To eliminate all their fears and avoid hefty fines as well money laundering concerns, it is crucial for all businesses to implement an ID verification solution. It is worth considering that the process of identity verification is user-friendly and it should also meet the demands of the company.
