Whenever someone talks about verifying user identities for online platforms, there are multiple ways. One thing is clear that the way should not be onsite, an online ID verification can comply with modern-day business demands.
The post-pandemic era is focusing on digital memes more now. Online businesses surged during the lockdown, be it online food delivery or e-commerce. It has become inevitable for businesses to opt for digital services. Even grocery stores are online now, people can order their desired products from these shops. They have to onboard customers remotely and online identity verification can be used to protect them from fraud attempts.
Online ID Verification Fulfilling Current Corporate Demands
Giving services over online platforms but verifying the identities by physical memes does not seem very compatible. Businesses have to verify their customers’ identities through platforms. With time, the methods of the identity verification process have been modified. Now businesses are investing in security because they have understood the importance of it.
Identity Theft - The rising concern for businesses
When a fraudster steals some legitimate user data (name and address) and then creates an online account using this information, it is known as identity theft. For example, an online banking account is created using stolen information. The situation gets worse when the account is used for illegitimate purposes. Fake banking accounts are used for financial crimes like money laundering. Online identity verification services can be used while an account signs up.
More than one account is used for laundering illicit cash. The funds are circulated through numerous accounts by transferring them from one to the other. This is done to break the link with the original source. Businesses involved in these types of activities are fined by regulatory authorities.
Sometimes the accounts are created using fake and synthetic information. The blended information is used in this case. These identities last longer because there is no direct victim. When the victim gets to know about this in normal identity theft, he informs the law enforcement authorities. The platform deletes that account and the crime stops there. While in synthetic identity, the criminal gets an advantage and can use the same account for more than one purpose.
Identity Verification While Account Sign up
A suitable way to combat identity theft is by incorporating online identity verification services while account sign up. Illegal access to the platforms can be limited by verifying identities through documents.
Only government approved documents are entrusted for identity verification. Here is the process of online identity verification.
- The user gives the bio-data to the e-form
- For verifying the personal information, the proof is also uploaded, it may be an ID card, international passport or driving license
- Then the information on the ID is cross-matched with user given data
- The user is asked to upload a live facial photo
- Through facial recognition, the ownership of the ID is verified
Document Verification
There are also cases where fraudsters create online accounts using fake documents. To deal with this, ID authenticity is also checked through document verification. It is checked that the document is issued by a legitimate authority and does not have any photoshop or forgery marks. Keeping in view all these points documents’ legitimacy is validated
When it is confirmed that the document is genuine, the data is extracted from it. Optical character recognition technology is used for fetching data from ID pictures. OCR digitizes paper data and makes it computer editable. The data comparison becomes possible because of OCR.
By verifying identities at the initial most step of the customer-business relationship, identity theft can be combated efficiently. The platform is secured from all external threats.
Wrapping it Up
Verifying online user identities is also a part of regulatory compliance under KYC - Know Your Customer. It mandates online businesses to perform ID verification on all new customers. If a business does not follow identity verification guidelines, it can be penalized. A business will have a good brand reputation if it verifies its customers as it gives a sign of security to new ones.
