Businesses are getting vulnerable to various threats like identity theft and data breaches due to rapid digitization. Criminals are using advanced software like deepfake, voice changers, photoshop, and 2D/3D masks to dodge the identity verification process. This way they illegitimately onboard platforms and perform illicit activities like money laundering, illegal purchases, and others.
This is why the need for robust ID verification solutions is increasing for industries to address the loopholes. As of 2020, the identity theft losses skyrocketed to $43 billion, compelling the industries to shield their onboarding process with AI-powered solutions. Moreover, they not only automate the customer verification process but also perform continuous monitoring to avoid unforeseen threats. More of the benefits are briefed in the blog.
Major Benefits of Identity Verification Services for Digital Industries
Synthetic identity fraud is a fast-growing problem business are facing and a lack of adequate identity verification checks will expose them more to criminal activities. The advancement in technology has further increased the chances of cybercrimes. Furthermore, criminals are getting sophisticated and are using digital methods to camouflage identities. This makes it hard for the industries to identify these criminals in time and protect their legitimate operations.
Digital threats need robust solutions and industries need to employ AI-powered identity authentication solutions. These provide an automated document as well as identity verification. Industries can perform liveness detection to make sure the client exists in the real world. Hence, these checks help industries mitigate the chances of fraudulent attempts and identity theft.
Guarantees Compliance with Regulations
Regulatory authorities are enforcing strict regulations on industries to mitigate the chances of fraudsters’ onboarding. As per the Know Your Customer (KYC) guidelines, businesses should ask customers to provide identity information prior to digital onboarding.
The AI-driven identity verification services enable businesses to streamline the onboarding process while verifying the information accurately. These services enable businesses to access databases and cross-verify clients for risk assessment. This way, industries can ensure better compliance with the regulatory standards.
Minimizes Hefty Penalties
Regulatory authorities mandate businesses to verify customers prior to their onboarding. If businesses fail to do this, it will result in non-compliance with the KYC standards. Ultimately, businesses will have to face hefty fines. However, with an accurate digital onboarding solution in place, the problem can be averted.
Safeguards Industries’ Reputation
Online stores, the e-commerce industry, financial institutions, and other sectors require ID verification solutions to combat rising identity fraud. As per Shufti Pro News, these criminal activities bring reputational damages to the respective industry. Therefore, industries should identify these threats in time to prevent customer dropoff and legitimate onboarding.
Eliminate Discrepancies and Errors
Manual verification involves human-controlled techniques that are prone to various errors. For instance, discrepancies in data, inaccurate entries, and inaccurate verification. The usage of AI technologies for identity authentication reduces the chances of these mistakes and provides efficiency in record keeping.
These solutions are more reliable because they provide accurately verified identity to help industries eliminate discrepancies. Furthermore, businesses can protect the customers’ data while mitigating the chances of data breaches.
Ensures Customer Experience
Businesses that are offering secure and protected services to their customers can ensure a trustworthy atmosphere. However, one failing to do so will face customer dropoff. Therefore, firms need to employ reliable and robust identity verification solutions to provide safety to customers’ data. This will result in ensuring better customer satisfaction. Industries with the least chances of data breaches and other criminal risks are more likely to attract and achieve a huge user base.
The AI-powered ID verification solutions provide a user-friendly experience to customers because of their easy-to-follow steps. It eliminates the chances for customers to repeatedly provide their information. The system stores data in the database and customers can simply auto-fill it. As Shufti Pro Funding indicates, businesses can streamline the onboarding process while further offering a hassle-free experience to customers.
Consumes Less Time
Traditional identity authentication methods involve a manual verifier who takes weeks to verify identities. Whereas, criminals use advanced methods to commit synthetic identity theft and onboard legit platforms. This is why businesses need improved solutions that instantly and remotely verify customers in real-time.
Manual identification is expensive and not all businesses can afford such costs. Furthermore, this increases the chances of fraudulent attempts. However, the AI-powered biometric identity verification system reduces the operational cost to such a level that every major or minor firm can afford it.
Keeping in view criminal activities, identity theft protection has become mandatory. Therefore, regulatory authorities are revamping strict regulations. As per these laws, industries should perform accurate identity verification and keep track of their customers. Here, the AI-powered identity verification services shield the businesses’ operations. Moreover, they provide authentic ID verification combined with liveness detection to ensure the onboarding of legitimate customers.