Identity Verification: The Top 3 Requirements for Digital Transformation
By Howard Schulman
Digital transformation entails implementing new digital processes for businesses. The transformation is crucial for businesses because it allows them to adapt to a changing environment and customer expectations. A key element in the process is the use of identity verification. Identity verification helps businesses to prevent fraud and improve the accuracy of their system. According to research, businesses lose at least $2.7 billion in monetary damage because of security breaches.
How Identity Verification Prevents Fraud
Identity verification is an essential component in the prevention of fraud. It helps businesses to conduct due diligence on their customers. In identity verification, customers provide their government-issued photo ID. The system will then cross-check your information with its database. If the information checks out, the customer can proceed to enjoy the service.
Yet the above verification process may not work to prevent identity theft. An identity thief can still use someone’s information to open an account. To tackle this, modern online identity verification systems use facial recognition technology. This technology helps the system to match a person's photo on the ID with their live selfies.
Requirements for ID Verification Digital Transformation
The customer’s convenience should always be a priority when the business undergoes a digital transformation. Customers will only use a platform if it’s simple and user-friendly.
To improve the digital transformation, consider prioritizing these three factors.
Customers wish to carry out more transactions over their mobile phones. Phones are very portable and convenient to use in crowded locations. Unfortunately, most industries have not optimized their customer forms for phones. Customers still need to access computers with PDF readers for them to complete the forms.
Failing to optimize their forms for mobiles only increases the service process. For Identity verification to work well, there is a need to optimize them for mobile phones. The optimization enables people to access the identity verification service from remote locations. All they need to have with them is their phone.
In optimizing the identity verification for mobile phones, pay attention to the interface. It should be simple and easy to use. A complicated user interface discourages people from using the platform. It will also mean that people will take longer to verify themselves. The process should be as simple as requiring the user to take a photo of their ID. The organization's automated onboarding system can then validate the ID.
Secure and Compliant
The primary role of identity verification is to identify a user correctly. If it fails to do this, fraudsters can take advantage of the system to perpetuate damaging schemes. Businesses should ensure the verification process meets all the security requirements. When building a fraud-proof digital strategy, you can consider using a one-time password (OTP) or knowledge-based authentication (KBA). These features add an extra layer of security to the verification process.
Organizations such as the Financial Action Task Force (FATF) follow strict guidelines. They require their members to adhere to their regulations. One of these regulations is the need to conduct due to customer diligence. A business needs to keep the regulations in mind when they digitize their services. The identity verification system should have the ability to identify customers using databases from private and public entities. Luckily, using OTP and KBA features can help. These features already meet all the security and compliance standards required for verification.
Customers stand to benefit from secure identity verification services in two ways. First, the organization will be adding extra layers of security to their personal information. This means that the chances of fraudsters stealing the customer's identity will be quite low. Second, the business will not impose extra burdens on the customer for the additional security features; automated ID verification is truly frictionless.
Real-Time Processing of Information
The essence of a digital transformation is to overcome the weaknesses of the manual system. In the manual system, it takes time for customers to get feedback from the business. The manual system is time-consuming and laborious. It requires clients to protect themselves physically at the business’s office. Clients do not need to do this for simple tasks such as updating their information.
The ID verification system should be able to provide users with real-time feedback. The system should leverage on systematic methods to reduce friction. This is only possible if the system can extract data from IDs or any other document. This data is valuable in populating CRM systems with accurate information for later use.
The real-time processing of information can help to prevent fraud before it happens. Fraudsters can only abuse the system if they can access it. The ID verification can help identify real IDs from fake ones in a matter of minutes. Incorporating other authentication methods such as facial biometrics augments the capabilities of the system. These extra features can confirm or detect theft of a document. As a result, businesses can mitigate the risk of spoofing.
The world is advancing. Soon enough, most businesses will need to automate their processes. Digital transformation has immense benefits for businesses, and makes them more competitive. But businesses should take a lot of care when they digitize their processes. Fraudsters are lurking in the digital world. They will not hesitate to take advantage of a weak system.
Identity verification can help you deal with these fraudsters. If you decide to incorporate it into the business, be mindful of your customers. Ensure that they can access the platform through many channels such as computers and mobile phones. It is also prudent to ensure that the system meets all the security and regulatory requirements. These requirements may vary depending on the jurisdiction of the business. This is critical in combating fraud and strengthening your platform.
Lightico’s identity verification solution incorporates the use of the latest AI technology. This allows your clients to confirm their identity in real-time through their mobile phones. Learn more about Lightico’s verification solutions and capabilities at Lightico.com. We have verification solutions for various platforms. These include digital payment platforms, eSignatures, eForms, and many more.
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