Identity verification solutions have been at the forefront of fraud prevention solutions available in the market. Identity theft has been a major problem all over the world and is the primary reason for businesses to lose their customers. Cybercriminals come up with advanced and sophisticated methods to steal a person’s information to gain financial benefits. ID verifications including document verifications and facial recognition are some of the methods that can be used to combat online fraud effectively.
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Online identity verification methods may just be the pinnacle of identity theft protection. They provide fast and seamless authentication of a person’s identity and can approve or decline customers on the basis of it. Fintechs are now designing advanced AI-based verification solutions to detect fraudulent activities. In that, they manage to catch any person trying to admit stolen information to gain a financial benefit. Some of the identity authentications checks currently available in the market include;
Biometric verification primarily comprises fingerprint scanners and facial recognition technology. Fingerprint scanners first became common when Apple installed the tech in its phones five years ago. Now, they have become a common source of identity checks for security purposes as well as a means to prevent online fraud. Facial verifications are a rather new security feature, but effective nonetheless. They tend to be more affordable than fingerprint tech as they do not require separate hardware installation since most devices come with a camera these days. Businesses can leverage both these methods to prevent fraud and reduce chargebacks or fines.
This service is available with many KYC and ID verification service providers. They can An online user or customer can verify his/her identity by scanning their documents digitally. Their details are then extracted through OCR (Optical Character Recognition) and fed to the verification software to authenticate. This tends to be the most effective and simple method for banks and financial service companies to verify their clients. Many online businesses are also using document verification to make sure their customers are who they say they are. This is a major step towards fraud prevention and the fast digital verification method can save a lot of time for companies who previously used human or manual verification methods.
Two Factor Authentication
It is perhaps the most common method used by online businesses and social media websites to verify their users. It uses a text message to send a verification code to the users’ personal number, which is then verified by the user to gain access to their account. 2FA is perhaps a simpler but more easily tricked way for user authentications.
Identity checks like document verification, biometrics or two-factor authentication methods have been the most helpful methods in reducing the threat of online fraud. With such fraud prevention methods, businesses and financial institutes can safeguard their practices from fraud and cybercrime. It can also help them reduce any losses occurred thereof and help build trust among their users and establish safer business practices.