An increasing number of digital solutions are being utilized today, thanks to the continuous growth and numerous innovations in the field of technology. From grocery shopping to banking operations, nearly everything has been digitized.
Customers using online platforms and businesses that have shifted online are safeguarded against illegitimate users, unauthorized account access, and potential data breaches with the help of modern identity verification solutions that use the strengths of both, human and artificial intelligence. With the help of features such as two-factor authentication (2FA), biometric verification, document verification, NFC verification, unprecedented cyberattacks can be efficiently minimized or even eliminated.
Substantial Growth in Cyberattacks
Financial institutions, particularly the online payment and banking industry, are highly prone to cyberattacks on a daily basis. This is because of the regular flow of hard currency that is involved in such businesses. In online databases of similar financial institutions, a hack or malware is attempted to gain access to confidential customer data such as the ID card number, bank account information, credit card details, etc. Criminals that are a part of such cyberattacks have proven to be highly disastrous for the financial wellbeing of companies.
In 2020, approximately 1001 cases of data breaches were reported in the United States alone. In the same year, 155.8 million individuals were affected because of these breaches. What makes this situation more alarming is the fact that these data breaches did not occur due to vulnerabilities on behalf of the customers, but because of inadequate security systems and accidental revelation of data by established companies. Due to this very reason, ID verification solutions have been gaining ground.
Main Attributes and Benefits of ID Verification
Because of accelerating online scams, improvement of security systems, that too with a high accuracy rate, has become the need of the hour. Robust ID verification solutions help businesses to build a transparent relationship with the customers. ID verification procedures using artificial intelligence technology have not just proven to be highly efficient and accurate, but have also enabled companies to protect themselves from incidents of customer data losses. The digital identity verification process is a mandatory part of the “Know Your Customer” procedure implemented by most organizations today.
To make global identity verification systems more credible, Anti-money Laundering screening is implemented simultaneously. This involves scanning the extracted data from ID documents against exhaustive databases of criminal watch lists, Politically Exposed Persons (PEP) lists, and global sanctions to detect high-risk customers.
An added benefit of advanced ID verification software is that the verification procedure can be implemented even if the ID document is provided in a different language. During the process of ID authentication, an interaction between the KYC expert and end-users is carried out through live video streams. These videos are recorded online to eliminate the need for the physical presence of the customer. With the help of AI-backed ID verification systems, businesses are safeguarded against security threats such as data breaches, malware, deep fakes, phishing attempts, and synthetic identities.
The Latest ID Verification Technologies
Organizations worldwide are equipping themselves with the latest technologies to win the battle against complex financial frauds. ID verification services are evolving and are being introduced in the form of biometrics, 2FA, and more in an attempt to enhance existing security protocols in businesses.
- Biometric Authentication
This technology is a major milestone in the field of technology, particularly in terms of the combat against online scams and frauds. Biometric authentication is a process through which an individual is identified using their unique biological characteristics.Go through technology blogs for more details. Examples of unique attributes that include but are not limited to:
- Facial characteristics
- Retina or iris scan
- Handwriting pattern
- DNA samples
- Palm and hand pattern
- Two-factor Authentication
Securing an online account or website using just passwords or PIN codes is no longer sufficient in this era of digitization. 2FA allows the original account owner to know when someone has tried to log in to their account. Similar to how Gmail sends notifications whenever the account has been accessed, 2FA systems play the same role.
This method of ID verification is considerably easy and convenient, as it allows the user to get verified by simply entering a unique code that is sent to the mobile device whenever they log in.