Mitigate Risk with Identity Verification

Mitigate Risk with Identity Verification

Recently everything has been moving digital. Digital transactions are booming and companies are necessarily embracing digital resources in order to grow. With more online capabilities, businesses are able to open themselves up to customers they may not otherwise have had – ones with time constraints that prevent face-to-face interactions, customers not located in their region, etc. However, as technology advances, so do cybercriminals. This is why staying up to date on best practices within the digital ID verification industry is so important.

There are many different kinds of businesses operating online that can benefit from online ID verification. Identity verification is an important aspect of conducting business online not only for fraud prevention but also for Know Your Customer compliance, ensuring that customers have a streamlined and safe experience with your online services. Financial institutions also have a strong incentive to use online ID verification for online onboarding and other aspects of their online business. Know Your Customer compliance applies here as well, but the stakes may be higher depending on the type of fraud the cybercriminal is trying to commit. No online platform is safe from hackers and fraudsters, which is why identity verification is essential in fraud prevention.

Identity theft is at an all-time high and its effects are costing businesses around the world billions of dollars every single year. The projections for the future don’t look good either, identity theft is a growing industry.

Fraud Prevention

When we think of reasons to implement fraud prevention and identity verification, the first thing that comes to mind is saving money, but there’s more to it than that. Fraud puts a hindrance on the customer’s experience (to say the least) when they are the victim, even if the retailer is able to reimburse them. It hurts the customer’s view of the company if their data is misused through the retailer or if fraudulent purchases are made through them on the customer’s behalf.

Fraud prevention is important for the company’s bottom line and reputation as well as the security of the customer experience. Additionally, KYC or “Know Your Customer” compliance is always a concern for any business that isn’t looking for fees or reprimands from the federal government.

On a positive note, having the ability through an online ID check to onboard and do business with people that might not have been able to come to you in person means that you have just expanded your customer base. Anyone almost anywhere can get access to your products and you can use online ID verification to be sure that they are who they say they are. And because the process is so fast and easy, transactions won’t take as much time for you or your customers, leaving them satisfied and you to move on to the next transaction.

IDScan.net has identity verification solutions that make fraud prevention simple for both your company and your customers. Many fraud prevention and identity verification solutions are not intuitive for customers and can have long processing times, which can lead to losing the transaction altogether. Customers want a streamlined experience when making purchases and you want to ensure that the transactions are legitimate. That’s where IDScan.net’s Document Verification System (DVS) comes in.

How can identity be verified online?

At IDScan.net, online identity verification is a simple process. Our identity verification automation digitally assesses the legitimacy of a customer’s identification document and compares it to a picture of the customer. The identity verification automation also uses anti-spoofing software to ensure that the customer’s selfie is not tricking the facial recognition software.

So, how does it work? The customer takes 3 images:

  • Front of the ID
  • Back of the ID and
  • A selfie

The automation performs ID verification by checking that the ID is formatted correctly on the front and back. It also checks that the information in the barcode matches what is displayed on the front of the ID. It then queries the USPS database to confirm that the address on the ID exists. Lastly, it moves to the pictures, calculating a confidence percentage in facial match between the photo on the ID and the selfie supplied by the customer. The selfie is run through anti-spoofing processes to assure it is legitimate.
The customer’s picture is first compared to a database of known faces to ensure that a human face is indeed pictured. A complex algorithm then maps the customer’s face and compares the unique layout of the pictured face to the face on the ID provided. The identity verification automation can then see more definitively whether or not the faces match and provide a percentage to represent the confidence it has in the faces being the same.

FAQ:

Why is fraud prevention important?

Fraud prevention is important for the company’s bottom line and reputation as well as the security of the customer experience. Additionally, KYC or “Know Your Customer” compliance is always a concern for any business or financial institution that isn’t looking for fees or reprimands from the federal government.

How can we prevent fraud with identity verification?

IDScan.net’s Document Verification System uses three photos of the customer and their ID to verify that both the customer and the identification document are legitimate.

What document types can our Document Verification System verify?

Our Document Verification System can verify driver’s licenses, passports, passport cards, green cards, and international documents with an MRZ (Machine Readable Zone).