Increasing Identity Frauds Calls For Online Id Verification

Increasing Identity Frauds Calls For Online Id Verification

From Smith Morkel

Due to boom in cases of id frauds and setbacks faced by corporations and banks, efficient and reliable online id verification solutions with advanced AI checks are mandatory

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People these days prefer transactions and trades taking place online which in the first place creates a gateway for potential cybercriminals. According to a global id scam report, the amount lost to identity fraud summed up to $32.39 billion alone in 2020; almost triple the figures reported nine years earlier.

Hackers and fraudsters these days are strategically accelerating towards multinational corporations, banking sectors and financial institutions; looking for some sort of incompetence or flaw in their security model/systems. In order to minimize chances of valuable data being compromised, the organizations are compelled to opt for digital identity verification of the future alliances to make sure that the person really is who he/she says he/she is, enhance their security systems by upgrading the AI and KYC features to avoid all of this in future.

 

Reasons for the rise in ID frauds

 

Synthetic Identity

       2. The permutation of identity components of multiple citizens of a country incorporated in one makes the identity validation tough; the social security number of someone, address of another soul, name of a third guy, creates a synthetic identity Chasing people who were aways off the map, it can go untraceable for months. Afterwards, the scammers usually open up a bank account and post obtaining a decent credit score, they request for a lump sum loan and vanish. Multiple cases were reported narrowing the same situation. The loss due to synthetic identity fraud in the US almost summed up to $1.3 billion

 

Why opt for online ID verification?

1.   Optical Character Recognition

 

The Optical Character Recognition model helps to e verify documents where the user places his/her ID , passport, license and all required records in front of their device. All types of identity verification are included in the mix:

        Document Verification

        AML/PEP’s Verification

        Address Verification

        Consent Verification

        Mobile 2 FA Verification

 

 All the unstructured written information about their origin and eligibility is digitally captured and converted into a proper usable composition from the documents to assess. The online document verification enhances the ability of the organization and reduces the manual workload, making the entire process swift and more efficient. 

     2 .Advanced AI Check

 

The algorithm of modern artificial intelligence models helps the organization to confirm identities of people in a fraction of a minute; providing rapid, secure and trustable information. 

 

Limitations of Online ID verification

1.            Facial recognition is the main selling point of online Id verification service providers but it can be deceiving too. With advancement in prosthetics and disguise, enacting or portraying someone else is not something people haven’t heard of. The chances of passing through that phase are slim but they do exist.

 

Importance of online Id card verification solution

Due to many data breach events occurred in past, there has been direct action taken by the government and new compliance laws/legislations have been brought into implementation forcing financial institutions and companies to ensure KYC procedures; completely confirming the authenticity of the person before any sort of collaboration or relation. Negligence in such delicate matters had been treated with harsh penalties; in 2020, the German Commerzbank had to pay a total of $50 million as a result of faulty KYC procedure. Similarly, the SEB ignored the set out AML laws and had to pay a whopping amount of $150 million. The importance of efficient identity card verification solutions can be realised through this.

 The importance of online Id verification goes beyond the interests of corporations; this sometimes becomes a matter of national security. Maybe an organization or a bank is unknowingly financing any illegitimate scheme of things or any terrorist activity due to their incompetence of Identity Verification of someone. Therefore, advanced and upgraded online Id verification is preferred prior to client on boarding

 

Conclusion

 

With an intention to rank on the perceptual positioning map of the concerned industry, every entrepreneur and corporation wishes to get maximum clients on board to increase their reach and influence. However, striking a balance between retaining profitable customers who are impatient in long processes and preventing any sort of scam is a hell of a task and many entities fail to achieve that. This is where online id verification services come handy. It makes the entire data collection process ultrafast and secure. The OCR data extraction software and advanced AI ensures accurate verifications. There are limitations of digital verification but chances of any unfortunate events are extremely slim. Its significance goes far beyond personal or company interest. It is the duty of every responsible citizen.

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