Identity Verification: Building a Safer Digital Environment
The world is moving toward digitization, every sector is becoming online from grocery stores to education. This also opens a door for frauds and scams. The major problem in digital businesses is identity authentication of users. Identity theft costs USD 16.9 Billion in 2019 as reported by Javelin. These statics show that there is a demand for a secure solution to counter identity theft i.e. Identity Verification. Statista reports show that the total market revenue for identity verification will be USD 7.88 Billion in 2021.
The What, How, and Why of Identity Verification
Identity verification means that the user is the same who he claims to be, and he is not a potential risk for the business. Identity verification is done through biometric identification in modern days, but it can also be done through photographs, personal identification number and digital records. ID verification goes through these services
It verifies the live presence of the user. It does not approve 3D masks, holograms or images. The customer just shows his face to the camera and is verified if it is real.
It checks the face against the image on ID documents. It checks that the documents are not forged, photoshopped or fake. IDV only approves original government-issued documents.
This verifies the address on the utility bill, bank statements or insurance agreements after checking the name against ID documents. Only authentic documents can be used for address verification.
Consent Note Verification
The customer is asked to upload the picture along with handwritten or printed consent to undergo consent verification. It protects the business from high-risk transactions.
The second step of verification for login, as password-based login is not enough to secure online transactions. A code is sent to the email or mobile, if the user enters the same code he is allowed to log in otherwise not.
The more advanced and secure method of identity theft protection is Video Verification. Experts verify the identity of the customers through online video interviews. This method is time-saving as well as reliable these days.
Identity verification is necessary because of rising identity theft. This builds trust among business entities and they will feel more secure to do business online. Identity authentication will enhance customer experience and speed up the business process and communication.
Identity Verification in wake of COVID-19
Online shopping increased by 60% after the COVID-19 pandemic, as indicated in a survey by RAND Corporation. The pandemic has enhanced the demand for online digital transformation. Now, the verification of identity is significantly more important for both businesses and users. Nearly all customers are using digital channels for online shopping, food delivery, e-learning and financial transactions.
COVID-19 has raised challenges for the health department because the doctors can't check their patients online, a face-to-face appointment is not safe anymore because of COVID transmission. A fraudster can fake doctors identity or can claim insurance funds. E-health provides ease in these problems, But how the Doctor will make sure that the patient gets the right prescription and online appointments security is a question. The identity verification will help to eliminate all the above risks.
Identity Verification in Elections and Public Places
As the US Elections have become controversial, President Trump calling it “rigged”. He believes that postal balloting is a fraud that can result in unfair elections. This is a serious concern for all Democratic Countries because a political party can steal voters' identity to manipulate election results.
The need for a secure electoral system that will result in free and fair elections can be fulfilled through e-voting. E-voting system operates through online biometric verification of the voter. The digitally verified and authenticated voter is allied to cast his vote. This is a more safe and trustworthy approach towards election rigging.
In areas and crowded public places, ID verification can be done through touchless KISOK technology. This can screen a large number of people in no time. The user gives their identity details form their home and upon arriving they are verified by showing their face to the camera.
Summing it up
businesses have to adopt identity verification now or soon. Business feels more secure during communication with a verified customer. The online financial industry should adopt it quickly, as it comprises online transactions in its processes. Online financial businesses can avoid chargeback costs due to identity theft and increase business revenue in the long run.