Reasons You Need Identity Verification to Counter Frauds?

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A $7.88 billion market in 2021 is to reach $18.12 billion in 2026 known as Digital Identity Verification. To ensure that the person is not a bad, scammer, or fraudulent, it was introduced. As we are getting into the digital world where all verifications are being done digitally like (Biometric Verification, Face Scan, Document Verification, OTP, and Bank Transfers). While you are opening a bank account or taking loans everywhere you need a digital identification

Why Digital Identity Verification?

Things in the most recent years are all gone digital and current Generation Z spends most of their time on social media and mobile. During the Covid, the digital era of digitalization boomed up and the behaviors also changed. Now people want to get things at their doorstep without going outside. In all cases, your identity is what is most used. If it’s not secured then how would you keep your security?

So seeing the things digital identity verification was introduced that helps customers secure their information and get their digital registrations securely. This helps both the consumer and the company from fraudulent or spam activities. Companies get their data centers saved from breaching and everyone gets a better experience.

As you know we are moving toward an era where everyone wants a unique identity card that can be used both digitally and physically and without identification security, you are at higher risk!

Last but not least that should be considered, that this plays a very important role in knowing your customer (KYC) and Anti Money Laundering (AML) at financial companies like banks which access and help understand the customer risk.

Working Process of Digital Identity Verification Services

When the user adds a fingerprint scan, facial recognition, or any type of digital identification it is stored in the database. When the same user comes back and tries to access his things using facial recognition or other methods the verification machine accesses the recently stored data and if it matches the right person, it works otherwise it doesn’t.

A fine example is your ATM transaction without a debit/ credit card instead of using a fingerprint scan. When you give a biometric verification using your finger on an atm finger scan it accesses the older credentials saved if both match you access your account otherwise you don’t. The core purpose is to verify that customer information is secured and that no unusual activity is performed.

Here is the list of a few services added to identity verification

  • OTP (One Time Password) Verification
  •  Liveness Detection
  • Knowledge base Authentication
  • Database Methods
  • ID Documentation Scan

Benefits of Digital Identity Verification

  • Could help finance companies like banks secure themselves from hacks and fraudulent activities where the applicant/ customer is remote.
  • Companies getting exposure to the more potential customers more securely
  • Facial Recognition helps get the right people on board comparing it with the facial expressions on the ID Documents.
  • Securely Transactions from Mobiles and Digital Baking from anywhere in the world.
  • A time saver for many as data verification can be done in 5 to 10 seconds depending on the document provided by the user.
  • This also helps companies/ institutions to meet (KYC Know Your Customer) requirements.

Use Case for Digital Identify

Seeing the use of advanced tools and technologies by scammers and fraudulent none of the industry is secure. Everyone now needs a digital verification method integrated. Three of the most popular use cases are listed below

Electronic Gaming

Seeing the high rise in e-gaming from pre-covid the market value of the online gaming industry has risen to 42.2 billion U.S dollars in 2020. Malicious activities can be kept away with verification services. It can help gaming companies avoid costly lawsuits and data threats.

Even you can see the gaming industry, physical games just got a stop for some time and on the other side, the gaming industry that was kept to a limited community saw major growth in the online gaming sector.

Many people started online games and even started their live streams on multiple channels and shared the info without any concern for security. That’s where a major gap is created regarding security concerns.

Digital identification services in the online gaming industry help companies like Esports to verify that the gamer they are registering is fraudulent or a real one. It is a KYC Practice like knowing your customer with their name, face verification, address confirmation, and real identity rather he/ she is a gamer or not.

Financial Services

Every finance department is working on making the user experience simpler like atm banks, insurance companies, internet banking, and digital transactions. As the department’s digital Illegal activities have also arisen, a Digital ID can help solve the problem and leverage the industry using the regulatory goals. Enabling the digital identity transaction in this industry could help a person to open a transactional account meeting the KYC goals. This could boost the blockchain industry.

Travel and Tourism

Fabricated identities, fake travel agencies do fraudulent activities and escape. This makes the travel and tourism industry more difficult to meet KYC Standards. Face recognition and other digital identity verification service in tourism could help in making the scam activities lesser.

Conclusion

During Covid-19 world pandemic highlighted the use of digital identity verification. Despite the benefits of working from home, many economic sectors experienced a shortage of human/ physical interaction and sharing of physical documents. A standardized Digital ID Framework was introduced that helped people share and receive documents across multiple avenues and kept them safe from fraudulent and scam activities. By that time it will apply in every industry that is yet not digital. Learn “what is digital identity?” in this post.

Know this thing if you don’t know your customer you are putting a ball in a deep dry well. The expected results won’t be produced on your time and money spent. KYC software helps you get the verified customer and get the things invested at the right place. Helping you save a lot of time, money, and investments. Also, these little investments create a good user experience from all aspects of both sides company and user experience.