Digital Identity Verification is the process of checking the identity of people online, and it is the easiest and most consumer-friendly method of confirming a person’s actual existence and avoiding identity theft in a safe setting.
The necessity for identity verification in KYC-regulated sectors is apparent: regulatory compliance. However, for non-KYC-regulated industries, the main objective of digital identity verification is to deter abuse and improve trust and security for both the consumers and the business itself. Regardless of whether it is for new clients or the consistent authentication of current customers, the best approach to proper identity verification is using an easy, quick and safe service such as Data Zoo for clients to verify their identity.
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What are the benefits of identity verification?
Compliance
The amount of information confidentiality and data security legislation is increasing and has become more strict, thanks to a continuous stream of data infringements. Arguably, the EU has made significant progress in terms of regulations, which is clear from AML, KYC, and GDPR, requiring verified identity. Nonetheless, the U.S. is taking notice, and we foresee the California Consumer Privacy Act to become the tightest data protection law in the country by 2020. And you need to use identity verification technology to keep your business safe.
Fraud prevention
As per the Consumer Sentinel Network Data Book of the Federal Trade Commission (FTC), imposter scams, debt collection, and identity theft were the most prevalent forms of fraud cases. Credit card fraud is the most common in identity fraud cases, with over 167,000 people who reported an unauthorized credit card account using their details. Using identity verification systems such as Data Zoo will prevent crime because offenders will not want to commit fraud with their established real-world identity.
Improved privacy and safety
Over the last several years, users have seen data breaches on television repeatedly. As a reaction, they have been losing faith in the capacity of companies to secure their information. About 71% of customers said that knowing that an organization uses improved, more comprehensive forms of identity verification will have a positive influence on their choice of that entity. These numbers have significant implications for merchants and e-commerce firms who like to make their clients feel confident in conducting transactions with them to boost their satisfaction.
Improved analytics
Companies that rely only on credit records and standardized knowledge-based authentication methods for identity verification can have a complicated, long, and invasive user experience or account creation process. It causes clients to turn to other businesses that offer quicker and more convenient methods. With digital identity verification tools, companies can now test and examine several pieces of data from multiple sources and throughout several online channels to effectively manage their potential for fraud, particularly in foreign transactions.
Accessibility and restrictions
Violent computer games, pornographic media, and tobacco use are all age-restricted, and only people with valid driver’s licenses can drive. Ethical and socially conscious businesses should adopt all reasonable measures to prevent underage children from accessing their facilities. By offering safe access to credible databases to authenticate a person’s age instantaneously, companies can securely give age-appropriate service to guests while keeping out minors.
The digitalization of trade and banking has brought new heights of innovation and comfort to the economic structure, and these have many distinct challenges. The digital age is competitive, and it is not unusual that the identity verification that Data Zoo provides has become more and more widely known in overcoming these obstacles. If you are considering identity verification for your company, ensure that your mission is to support businesses and users handle investment risk, track identity fraud indicators, and maintain their long-term economic welfare.
