In our ever-changing environment, identity verification has become critical. It is essential for various reasons, including compliance with government rules, security, and fraud. It also guarantees that an individual’s identity matches the one they claim to have. Moreover, online identity verification is a necessary component of the majority of processes and procedures, both online and offline. The identity verification procedure is referred to as the Know your customer (KYC) process in a variety of industries.
Consumers may move from one product to another if their wants are not fulfilled, or they can bounce from one firm to another if their needs are not met or dissatisfied with the service offered. Additionally, in a world when people’s identities may be stolen to do horrible acts, one risks losing clients if they lack confidence in your brand. On the other hand, verifying your reputation and establishing trust in your brand may work wonders for your company. Being able to confirm a customer’s identification quickly contributes to the establishment of critical trust. This is why most firms use verifiers to manage the identity verification process via client documentation, comparing selfies to their faces, and reviewing KYC lists. Utilizing a third-party verifier expedites the procedure. It saves customer checks and enables businesses to continue onboarding clients without having to spend valuable time fact-checking papers themselves.
Individuals and businesses that do not take identity verification seriously expose themselves to danger. Among these include fraud and money laundering hazards. One of the significant elements that might have contributed to this was the absence of a strong identity verification mechanism. As a consequence, businesses use risk-based models that rely on identity verification to determine which individuals may pose a concern. They may then utilize this data to develop authentication levels proportional to the risk associated with certain transactions. Following that, they can categorize those that are legitimate and those that may be fake.
To know more, below is an infographic from authID that discuss sharing economy and the need for identity verification.