Identity theft cases are at an all-time high. Experts believe these cases occur so often that there is a new victim every 14 seconds.
What Is Identity Verification?
Identity verification is the process of confirming that a person is who they say they are. This has become vital for many companies today. Especially now that fraud is growing at a staggering rate. The term Identity is used to refer to certain traits and personal characteristics that define a person. While identity verification is the process of establishing a person’s identity.
Why is Identity Verification critical for your business?
In an ideal world, a person would identify themselves and a business transaction could occur. Simple really. However, with increasingly sophisticated banking, services, and products, there are increasingly sophisticated fraudsters – those looking to profit by working around the rules.
Identity Fraud is on the rise
Identity Fraud is costing victims more and more every year. From simple scams, such as posing as a customer to withdraw cash from a bank account to sophisticated, long-term schemes where false identities are used to create businesses and shell corporations that then invest in other businesses using kickbacks from fraudulent business deals.
There are a number of defenses that businesses can deploy against such attacks, but the best and simplest is Identity Verification.
Several techniques exist that can be used to verify a person’s identity. However, the best way to achieve accurate and reliable confirmation of identity is to use several different methods. At the very least, more than one method should be used.
The top 5 ways to verify identity are:
1 – Credit Bureau-Based Authentication
Credit bureaus hold credit information, such as people’s full names, home addresses, and ID numbers, that can be used to verify people’s identities. This method works best for those who have well-established credit records. Without a sufficient credit history, it may not be possible to use this method.
2 – Database Identity Verification Methods
Another way to verify an ID is to use data from social media, as well as data from paper and digital databases. Although this approach is widely used to assess individual risk potential, in reality, there’s no way to know for sure whether the person submitting the information, and completing the transaction is, in fact, the same person.
3 – Knowledge-Based Authentication
This method verifies identities using security questions. The questions should be personally applicable to the individual, so as to prompt answers that only they should be able to provide. A time restriction may be added as an extra layer of protection. Unfortunately, personal information nowadays is often freely available on social media, jeopardizing its credibility.
4 – Online Verification
Individuals are generally asked to provide a photograph of themselves holding their ID document. This is done to verify a government-issued ID matches an individual using various tools, such as AI, manual checks, computer vision, and biometrics.
5 – Two-Factor Authentication
Along with login information, two-factor authentication techniques require the personal information to be submitted before account access is given. Two-factor authentication requests, also called tokens, are usually sent to an individual’s phone or email, necessitating the use of smartphones.
Identity Verification Solutions that won’t leave you behind
To learn more about how you can implement identity verification methods in your business, read more on the visionAI Suite.
The visionAI Suite provides business automation solutions using AI and RPA technology. Customer interactions, onboarding, identity verification and data extraction are just a few of the mundane tasks that can be automated using the visionAI Suite.
The visionAI Suite uses AI and RPA to automate business processes. The visionAI Suite can automate customer interactions, recruitment, identity verification, and data extraction.