With the progress in cutting-edge technology, the fact that businesses are witnessing a greater level of vulnerability can not be neglected. The number of hackers is also rising as technology advances. In the year 2019, frauds hit a greater record and have cost 1.72 million dollars. With the rising number of identity theft including synthetic identity fraud, there is a great need to deploy robust ID verification solutions that could help online sectors combat data breaches, identity theft, and other criminal activities while making them compliant with the global KYC/AML regulations.
Here are the 5 identity verification solutions that online sectors should deploy to establish a good and transparent relationship between the company and its clients.
1- Artificial Intelligence
Artificial intelligence plays a critical role in improving firms’ cybersecurity policies and fighting fraud. It aids computers in making decisions just like humans do. Machine learning and artificial intelligence algorithms, for instance, contribute to empowering technology that online sectors use every day, such as self-driving cars and search engines. Furthermore, it can be used to give powerful solutions for smooth consumer identity verification and fraud protection. Artificial intelligence enables businesses to develop cutting-edge consumer identity theft protection solutions. Machine learning and artificial intelligence both are used in everything from facial recognition to biometric identification, from OCR to consent verification. Moreover, when combined with human intelligence, it aids in the accuracy and efficiency of the identity verification service.
The use of blockchain systems enables enterprises to eliminate identification challenges like data security, false identities, and ease of access. The fact that the data storage procedure includes blocks and that database modification cannot occur within those blocks makes blockchain technology even more secure and trustworthy. Without disclosing actual data, a decentralized system like blockchain allows everyone in the community to have a comparable source of truth regarding which credentials are genuine.
Three actors involved in the blockchain verification are as under:
- Identity issuer
- Identity owner
- Identity verifier
The legitimacy of a real individual’s information in the presented evidence is not examined by verifying entities, but blockchain technology examines the validity of authentication and testifying parties to determine whether to authenticate the proof.
3- Biometric Authentication
Hackers can certainly access anyone’s data, but not their biometrics. Secure biometric technology entails a high degree of precision and efficiency in the verification of a client’s biometrics. Biometrics identity verification system driven by AI uses 3d liveness detection for speedy and safe identity verification using a selfie. Biometric login removes friction and delays from the login process, making it easier to complete. For reliable and efficient matching, 3D liveness detection takes live biometric data. This provides a high barrier against spoofing attacks and fraudulent operations for financial infrastructures. Through quick and simple development options, biometric identification platforms may be integrated with any system. With the use of AI-powered mapping algorithms, biometric identity verification services validate an individual quickly and accurately.
4- Optical Character Recognition
Artificial intelligence provides the door for intelligent OCR solutions to resist unauthorized access, fraudulent activity, and illegal money transfers. OCR is an information extraction method for detecting handwritten materials. This technology aids data entering activities in businesses. Several platforms provide an enhanced OCR engine that uses natural language processing as well as artificial intelligence to improve security procedures. With the use of robust OCR technology, businesses may reduce manual data entry operations and give a seamless experience to their customers.
5- KYC and AML Compliance
To comply with changing regulatory requirements, businesses must ensure KYC/ AML compliance. In the KYC procedure, user identity is verified using relevant documentation such as government-issued identification cards, licenses, and passports. Facial recognition, address verification, consent verification, two-factor, and multifactor authentication are all included in the KYC process. With digital onboarding and online identity authentication by experienced verification specialists, the KYC procedure prevents identity fraud. Anti-money laundering also aids in the elimination of illegal transfers of money and potential money laundering operations in financial networks and a variety of other industries. With the AML software, complex entities may be quickly screened out.
There are many tools available that offer trustworthy, real-time, precise, and quick identity verification. To fight chargebacks and counterfeiting, businesses must engage with reputable ID verification systems. The urgent requirement of the moment is to improve security protocols. To fight illicit money transfers, identity theft, and to distinguish between good and bad consumers, financial infrastructures must use AI-powered biometric identification technologies.