Top 5 Compelling Use Cases of Identity Verification to Restrict ID Fraud
Today’s international regulatory environment is constantly fluctuating. Data security and Know Your Customer (KYC) standards must evolve as digitisation spreads to more businesses. Moreover, by 2027, the identity verification industry is expected to be worth over $18 billion, increasing from $4.93 billion in 2017.
Data theft, account takeovers, ID fraud, and increasing demand for remote operations require organisations to implement identity authentication measures. Modern KYC and identity verification methods that meet current regulatory requirements and are future-proof can help, especially for innovative companies. Such policies are at the forefront of defence regarding the dark side of our increasingly interconnected world.
Top 5 Worth-considering Use Cases of Identity Verification
The following are the important use cases of identity verification to combat ID fraud in businesses:
- Financial Services
The need for identity verification in the banking sector is rising rapidly. It is the perfect solution to avoid identity-related fraud and prevents penalties for non-compliance with KYC and AML policies. As a result, businesses can ensure that all financial transactions are secure.
An enterprise-grade identity verification solution is commonly used by:
- Wealth management companies
- Traditional banks and challenger banks
- Credit card companies
- Lenders
- Insurance firms
- Foreign exchanges
- Cryptocurrency firms
- Payment providers
- Remittances
- Brokerages
- Investment platforms
Digitisation is helping all these organisations to enhance their customer experience, productivity, and efficiency. Cybercriminals have also begun using technology to examine financial services for loopholes they might exploit to steal money. The French Criminal Court fined the Swiss bank $5.1 billion for Anti-Money Laundering (AML) violations. Thus, ID verification solutions have become necessary for financial firms to restrict identity theft and ensure compliance with regulatory bodies.
- eCommerce and Retail
Cybercriminals now frequently target online stores. They use several new methods to acquire consumers’ critical information and perform fraudulent activities. However, identity theft is the most common kind of scam, causing distress for eCommerce companies. Companies need an identity verification system to detect fake IDs and other buyer information to deal with this challenge.
Customers often leave a website without completing a purchase because they need to trust the site. For this reason, an intelligent identity verification solution can boost consumer confidence and reduce cart turnover. Also, businesses that focus on preventing ID fraud naturally enhance their reputation. Thus, eCommerce and retail businesses may increase revenue and reduce fraud with the help of identity verification services.
- Government
The United States has lost an estimated $200 billion due to false claims for jobless benefits since March 2020. The primary reason behind this loss is identity theft. Fraudsters breach personal data and use it to file a claim with stolen identities.
Government agencies can securely and quickly provide online public services using identity verification technology without compromising Personally Identifiable Information (PII).
Several government services can benefit from online ID verification, including:
- Payments
- Business Registration
- Voting
- Employment programs
- Healthcare programs
- Surveys
- Taxes
Precise and trustworthy identity data offers a modern government methodology that reduces costs and increases digital services.
- Education
Because of the COVID-19 pandemic, schools and universities have adopted online education and accelerated digital transformation activities. However, this introduces new threats.
Educational institutions might benefit from a reliable identity verification tool to ensure that online students are who they claim to be, regardless of location. As a result, they can:
- Enhance the quality and productivity of student services
- Serve a worldwide student population
- Maintain the academic integrity of learners, faculty, and institutes
Educational institutions can simplify student enrollment whilst avoiding the time and cost of authenticating every new student in person. The online identity verification procedure requires students only a few seconds to finish. Furthermore, many verification technologies provide liveness detection, guaranteeing the student is present throughout the account creation, class attendance, and online assessments.
- Healthcare
The healthcare sector is another primary user of identity verification services. Undoubtedly, with high-tech developments, the healthcare industry is multiplying worldwide. Nonetheless, it’s also true that these developments have brought several risks to the industry.
Two of the main risks are identity theft and information breaches. Patient records are easily stolen, and incorrect identification of patients can lead to potentially severe mistakes in diagnosis and treatment.
Digital identity verification helps healthcare providers improve the quality and efficiency of service delivery. They can cut costs and keep patient data secure using new ID verification methods.
The healthcare industry would benefit significantly from a reliable digital identity verification solution so that they can:
- Confirm patient identity for HIPAA requirements
- Protect medical information
- Process distribution of prescription medicines
- Avoid medical identity theft
- Onboard and register patients remotely
- Decrease wrong transfer, release, or updating of medical records
- Avoid financial setbacks caused by fraudulent claims and incorrect billing.
Key Takeaways
The financial industry requires robust identity verification services to comply with the KYC/AML legal requirements. With their advanced AI-powered IDV tools, financial firms can restrict identity theft and safeguard their business operations. Thus, ID verification solutions provide them with result-driving mechanisms to curb criminal activities.
