Digital frauds are radically different from scams seen in brick and mortar businesses. Any business needs to take measures to protect itself from fraud. Stolen identities can be used to commit a variety of crimes causing damage to the business. A data breach has exposed every type of business and merchant to such crimes. The best way to mitigate such crimes is to use real-time identity verification tool. It will help the businesses to prevent loss and will also improve their customer onboarding experience, as the real-time face and biometric verification are very popular among the consumers. Here is how online id verification software is fighting back different digital frauds in online marketplace:
Underage Persons Accessing Age Restriction Websites:
The online marketplace has many threats to fall prey to many online scams. Age verification is vital for accessing any sites or purchasing many goods but often fake ID cards are used by the underage people to get liquor or to access an online gaming site. The businesses unknowingly commit a non-compliant act and have to face penalties for that. Online business websites are integrating an online identity and age verification solutions into their systems to fight back such fraudulent acts.
Online Fake Merchant Fraud:
The businesses are initiating and maintaining B2B relations with online businesses across the globe. Such business opportunities are generating revenue but also exposing the businesses to the fake merchant frauds. The fake merchants can cause revenue loss, credibility loss and loss of company value in the market. The businesses that have B2B relations with the terrorists and money launderers posing as merchants come under the strict scrutiny of the regulatory authorities. Hence the businesses must perform in-depth person identity verification of their merchants and stakeholders.
Identity Theft Fraud:
It is one of the most common types of fraud. In this case, fraudster carries out an online purchase using a different identity. This enables the fraudster to order items online under a false name and using someone else’s credit card. Identity verification services can mitigate this fraud right from the root, saving your business.
Friendly Fraud:
Also known as Chargeback Fraud, it occurs when a consumer makes an online purchase and then claims his credit card has been stolen and asks for a chargeback after receiving the purchased goods or services. This type of fraud can be avoided using digital identity proofing services, for instance, Facial Recognition detection at the time of purchasing an item.
Credit Card Fraud:
Fraudsters often make online purchases using stolen credit card details. Sometimes they may be in physical possession of the card, other times they could have gained all the information electronically. The moment the transaction is concluded and payment approved, the business is responsible for ensuring that the customer was who he said he was. The card owner may seek reimbursement to the Company equal to the amount of the payment. This fraud can also be avoided using an identity verification solution when a person is buying online.
Perks of Using Identity Verification Services:
Apart from mitigating the fraudulent activities as mentioned above identity verification services have many other benefits for the online business adding a cherry on the cupcake here is why you should be looking at identity verification tools for your e-commerce website:
- Reduce Shipping Error:
Identity verification makes your shipping operation more accurate and efficient. By verifying a customer’s shipping address, you eliminate sending orders to the wrong place, which causes unnecessary delays and angry customers. Using identity verification services ensures customers receive packages at the right address while reducing shipping costs and time spent on customer support inquiries. It also helps build the trust of the customers.
❖ Make Online Ordering Convenient:
One of the leading causes of shopping cart abandonment is the complexity of many online shopping cart systems. Customers often need to input information multiple times. Using identity verification technology you can give your customers the opportunity to scan their information directly into the system, paving the way for quicker, more accurate transactions. This saves customers time, increases sales and reduces customer support costs.
❖ Make Mobile Transactions Safer
With more and more customers using their smartphones and tablets to make purchases online, it’s more convenient to provide solutions to identify and protect users on the move. Identity verification solutions can eliminate unnecessary typing for mobile users, while accurately identifying each user for secure, trusted mobile transactions.
❖ Easily Implement Compliance Requirements:
Whether you need to verify the age of your customers or comply with growing state and federal regulations, identity verification is an important step in the process, allowing you to cover your bases while preventing potential lawsuits.
- Increased Security:
Identity solutions are a great tool to instantly enhance the security of business by authenticating visitors in real-time.
- Better Relationship:
Online verification eliminates the annoying pile of paperwork making the business one step ahead and more customer-friendly. Customers will appreciate your attention to safeguarding their identity, building rapport, and brand loyalty.
❖ Stand Strong in Competitive World:
If the agency publicizes their use of electronic verification systems to help with ID scans, that gives client confidence and peace of mind that all the candidates have been verified consistently and are who they say they are. Many of customers widely communicate their use of ID verification technology, both to highlight the technology as a competitive strength against other agencies and also to deter anyone who may consider applying for roles using fraudulent documentation.
Without further ado, it will not be an exaggeration to say that online identity verifications can not only fight back different frauds and threats but can also increase the profit of the business. It also helps in fulfilling KYC and AML regulation for the business. Digital identity verification is verily the right thing for any business to kill the frauds. It is always strenuous to enter data without errors, so doing this digitally eliminates all these possibilities and streamlines the process as according to that provided information
