Identity verification is a necessary process that makes sure whether a person matches the identity provided by them. Identity verification is an essential in digital transactions, opening a bank account, and completing tax procedures as well.
In banking and many Industries, the ID verification process is known as the digital KYC (Know Your Customer) process.
What happens without proper ID verification?
According to IDology’s annual report, hundreds of executives and analysts are at risk as a result of not being prepared for fraud detection.
The key findings in this year report are:
- 58% of businesses experienced an overall increase in fraud. At the speed at which the data breaches are increasing and going deeper, a huge amount of personal information has become available on the dark web.
- Abundant access to username and passwords, addresses, account information, and phone numbers made it cost-effective and easy for criminals to commit fraud in customer-not-present environments such as online and mobile. As a result, 67% of companies reported that fraudulent activities increased online and 63% on mobile.
- Mobile fraud is also one of the fastest-growing threats to businesses and customers. Also, there is an increase of 117% in the prevalence of mobile fraud compared to last year.
Today, many businesses are not prepared to address certain fraud schemes. Some of the fraud schemes which they are less prepared to detect and prevent are:
- 32 % reported mobile device attacks such as hacking and malware, up from just 12% in 2017
- 32% reported synthetic identity fraud, up from 26% in 2017
- 25% reported account takeover, up from 19% in 2017
How ID verification works online?
Various identity verification methods have been developed for ID verification purposes and are carried out in different ways depending on the channel.
- Images and selfie face recognition are used to verify the identity of the user. It is unreliable as it does not comply with the appropriate security standards and is used for ID verification in low-risk operations.
- Verifying the identity through a streaming-video called video ID verification. This is secure and meets the required security standards of remote identity verification regulations. Artificial Intelligence and Machine Learning are used to offer total reliability to this process.
- The eKYC process is also a secure and reliable way to verify the identity of a user from a distance through an online way. It has a series of steps involved in it, which only needs a device with a camera and internet connection.
- Face recognition and digital signature are also the most secure and reliable ways to verify the identity of a user, working with streaming-video identification.
Applications of ID verification
- KYC in banking and finance for opening a bank account and online sales and purchases
- Telecommunications and Insurance industries use ID verification for product procurements, services, and representations.
- Many apps and platforms use ID verification as a part of the log-in process at apps or web, customer and user authentication as a part of registration, second-factor authentication, etc.
- Government and administration use ID verification to issue or renew ID documents, as a part of the identification process to create an electronic government or in some medical applications related to health or drug prescription.
So, introducing ID verification into the initial stages of any process will enable the companies to prevent a person from creating false identities and committing fraud.
Why MRZ Passport scanner?
The MRZ Passport scanner that helps every user to directly integrate the passport, ID documents, and other important papers onto the app quickly. Besides, there are multiple other features that make it a one-stop solution to all your data extraction problems. The best part is that you do not need to rely on any external devices or connections, and this guarantees complete data protection.