Fraud is rising with the rise in digitalization. Cybercriminals are taking complete advantage of this digital revolution. This is is why it has become completely necessary to have an identity verification solution. Id verification service is the process of verifying the identity of each and every customer to make sure their identity is really what they claim it to be. There are many ways to verify the identity and in this blog, we will discuss in detail how AI-powered identity verification solutions can streamline the whole verification process but before that let us talk about the requirement of identity verification and the entities of the problem have to face.
The Regulation of Identity Verification
According to the Bank Secrecy Act of the 1970s, all organizations are required to play their part in fighting fraudulent and criminal activities by verifying the identity of each and every customer. They are to report to authorities if any suspicious activity is detected. Businesses that fail to comply with these regulations have to face penalties from regulatory bodies that oversee financial-related crimes.
Now that the businesses have moved online, the identity verification process has become a bit difficult to carry out especially the face verification. This is why fraudsters are stealing identity and impersonating someone they are not and more and more businesses are falling victim to it. The number of chargebacks that are requested from the bank is $40 billion annually.
Due to the growth of cyber-attacks, there is an increase in demand to verify identity online. According to the market insider, in 2018, global identity verification accounted for USD $5.52 billion. It is expected to grow between 2019 to 2027 at a CAGR of 14.3%.
Online Identity Verification Solution
Online identity verification can assist online businesses and e-commerce platforms in meeting their regulatory requirements and stay safe from fraud as well. This solution integrates artificial intelligence to make it much more accurate.
Following are the various ways that identity verification solution works:
Through this process, the identity of the individual is verified using their government-provided identity card. The customer has to send a picture of their identity card, this identity card is verified against the previously registered information to verify the identity of the individual. The format of the identity card is also analyzed to confirm its authentication
Facial recognition technology is applied in this process to verify the face of the person. Online businesses have no means to verify the customer’s face and this solution comes pretty handy in such situations. The customer has to send their selfie with the picture of their identity document picture. The face is screened against the identity card’s photo and with the previously submitted data. Facial recognition technology can even catch spoof attacks.
This process verifies the person’s address by verifying their identity. I this process the individual has to submit their secondary document along with their identity card. The secondary data must contain their home address or business address like utility bills or bank statements. The identity card data is screened against the secondary data to ensure the address. This is extremely helpful when the businesses require to send deliveries or shipments. This way they will not have to face the return of the product or misdelivery of the product.
It is a security measure that verifies the person’s identity through their unique facial features. These features could be their fingerprint, iris of the eye, face, etc. The customer has to just get their biological feature registered in the system. Then whenever they request access, they are to prove their identity by scanning those features against the system. This is being used by many organizations for security purposes.