The evolution of technically advanced services led businesses to promote their products and services through online channels. This shift allowed imposters to illicitly access the customer’s sensitive information and use it to satisfy unauthorized monetary transactions. They developed new techniques to manipulate customer’s confidential information and conduct financial crimes, such as money laundering.
Businesses must employ online identity verification services that could examine the customer’s financial activities and eliminate unauthorized individuals from illegally erupting the business services. A study shows that the online identity authentication market is expected to accumulate a market share of approximately $21.8 billion in the coming few years.
In this blog, we will explore the what, how, and why of online identity verification services and how they enhance the company’s business operations by detecting the identities of illicit entities.
What is the Significance of Online ID Verification in Authenticating the Customer’s Identities?
Online identity verification is the process of validating the customer’s identity during the onboarding process by utilizing digital identity authentication tools. These tools are powered by machine learning and AI technologies that make the detection of inconsistent and irregular activities easier and more accurate. ID verification online is crucial for businesses to detect fraudulent activities as it limits the access of unauthorized entities from the business servers. These services are useful in identifying various crimes, including money laundering, spoofing and synthetic identity attempts, identity theft, and terrorist financing.
Online authentication tools are the future of identity detection as they remove the requirement of using alphanumeric passwords that could easily be accessed by manipulators. Businesses that utilize these services must follow various steps to ensure an authentic identity authentication process. Businesses must require customers to submit their identity documents during the onboarding and registration process.
Once the documents are submitted, the next step is to conduct a facial screening of customers tio match their live facial characteristics with the information stored in the official documents. High-profile customers are additionally screened against several watchlists to ensure that customers are not involved in illicit activities.
How Does the Online ID Verification Process Screens Customer’s Identity?
To effectively conduct online identity verification checks, businesses must incorporate optical character recognition (OCR) and biometric verification tools Ocr services are crucial for businesses because they can easily convert unstructured and complex handwritten documents into digital and machine-readable formats.
These tools can detect inconsistencies and manipulations in the documents and can easily identify whether the underlying document is forged or authentic. Biometric verification solutions are the backbone of online identity verification procedures because these services allow companies to examine the customer’s biometrics, including facial characteristics, fingerprint scanning, and voice recognition.
Biometric verification services use active and passive detention services that examine the customers’ unique features through 3D depth and texture analysis services. These can identify the uniqueness of the customer’s voice and can easily screen out those entities who try to manipulate legitimate identities.
Biometric identity verification solutions are revolutionizing identity validation services because they promote password-free authorization and can be used to authenticate remote customers. The verification IDs promote faster processing times for businesses and increase customer conversion rates. They comply with the global regulations of KYC rules, which enhances their reputation and performance.
Why are ID Verification Services Crucial for Enhanced Business Workflow?
Online identity verification services are applicable in different business fields as all industries want to protect the services and customers’ identities from illegal access. These services enhance the company’s business workflows because they ensure security from fraudulent activities that may disrupt the business activities.
- The most critical application of online identity checks is the financial sector as they deal with the monetary requirements in various industries and store the identity credentials of thousands of customers at once. This sector is the victim of money laundering, which is why online identity verification solutions are crucial to eliminate such attempts. These institutions should allow financial bank account access to only those customers who pass all the verification checks.
- The healthcare sector can benefit from these services because they protect the patient’s medical statements from identity scammers. They ensure that medical services are accessible to only authorized entities. The forex industry can also use these solutions to identify the identities of brokers and traders to ensure a secure trade of assets.
Concluding Remarks
Online identity verification solutions are crucial for businesses to protect their customers and managers’ identities from illegal and unauthorized access. These services use AI-powered identity verification services that allow companies to detect data manipulation and inconsistencies in business activities.
The biometric verification services and OCR services are used to identify document alteration and spoofing entities due to their utilization of machine-learning algorithms. These solutions provide remote verification facilities for customers who live in distant areas, which enhances their satisfaction rates and improves customer conversion rates.
