Since the world has become digital, the amount of accounts takeovers and identity thefts as well as data breaches, have grown If we take a look back at the past that was impacted by data breaches, they revealed over 5 billion data records during 2020 all by itself. Therefore, companies are searching for reliable methods to prove that a person is who they claim to be. Being able to do this quickly and without any bumps in the road is vital to the growth of any company or business. Therefore, they require strong identification theft security strategies.
Protecting against illegal activities isn’t only the primary reason behind the development of an identity verification system, however, there are many other factors that need to be taken into consideration, such as conformity with regulators and providing new customers with the ability to access digital solutions and Here’s how ID verification can benefit different companies.
1- Improve Brand Reputation
A solid reputation is crucial for all companies and maintaining a good image in a market with an array of choices for consumers is very difficult It’s easy for clients to move between brands in the event that they don’t get what they expect. With the increasing amount incidents involving data, customers are looking for companies that are reliable to ensure their data is secure. If a customer has an emotional bond with the business, they don’t just become regular customers but also spread the word about the brand, which helps build its good reputation on the market. So, by using identification verification companies can show that it is striving to build confidence in what is now unsafe in the digital age.
2- Avoid Costly Fines
In 2020, the fines resulting from infractions to MIFld KYC, MIFld Privacy, Data Protection as well as Anti Money Laundering regulations in the financial institution will be 10.6 billion dollars It is not a good idea for businesses to invest their money in such massive fines and penalties, which is the reason why AML, as well as KYC, are essential.
Both of them are linked AML is the term used to describe the procedures that are governed by laws and regulations designed to prevent the use of illicitly earned funds as a legitimate source of income In contrast, the KYC process checks the identity of the client in the process of onboarding to determine their risk of criminal actions. Following these two identity verification methods is essential to avoid penalties and, in the worst case even jail time. Implementing identity authentication solutions is the way to ensure the business ‘ identity is verified, ensures compliance with the laws, and stops them from having to pay heavy fines.
3- Avoid Costly Chargebacks
In the vast number of identity frauds that are committed each year, identity frauds that involve credit cards constitute a large percentage It is because many consumers make use of credit cards that aren’t theirs to conduct transactions. When the card’s owner detects their card has been illegally utilized, they demand to end the transaction. Since the business knows not to know who the person is, they are required to compensate them and the whole procedure is known as chargebacks in the world of finance. It is a huge expense for companies that provide the option of credit card payments. So, costly chargebacks can be avoided by having the use of solid identity verification online system that is in place.
4- Avoid Fraud
Financial crimes are rising every day and are destroying businesses. These criminal and synthetic identity fraud are a significant issue for all businesses, particularly those that earn a small amount. A small amount of money that is smuggled out could mean that the business is in danger regardless of how big or small the business is. Thus, companies are shifting to risk-based strategies which include identity verification services to gain access to users who could put a hazard on the business.
5- Improve Customer Experience
Nowadays, consumers require a superior customer experience from every company they purchase from. They require not only high-quality security but also a seamless authentication experience in which they do not need to disclose all kinds of information and their identity is quickly verified. Therefore, a biometric identity verification service like the detection of liveness, recognition by biometrics, and automatic scanning, provides clients with a seamless verification process. If there is more security and better customer experience this helps the business to retain customers and also in establishing an excellent image in the marketplace.
Data security breaches or Identity theft have put consumers in a panic. To remove all their concerns and to avoid costly penalties as well as worries about money laundering It is vital that all companies implement an ID verification method. It is essential to ensure whether the procedure of identifying yourself is simple to use and will be in line with the needs of the business.