In this article, we tell you which big companies use Identity Verification Services for Fraud Protection. In a marketplace riddled with fraud and financial crimes, it is increasingly becoming difficult for businesses to protect their customers. Online commerce continues to grow at an exponential rate and with it arises an equal opportunity for identity fraud. Enterprises, whether big or small, end up bearing the worst consequences of such scams. In addition to facing chargebacks from customers, they also have to pay fines to the bank or the credit card company for not implementing sound customer verification methods.
Even if fraud were not a concern, banks and other enterprises are now getting large volumes of cross-border transactions, and that increases the potential of money laundering and other financial crimes. Some of the industries that are actively using Identity Verification Services to stop fraud prevention and those industries are:
Top Five Industries Using Identity Verification Services
The Financial Services Sector
Conventionally banks asked for identity verification from customers manually. More recently, with automated verification solutions available, they have now been averted to digital identity and document verifications. They can now ask customers to scan their ID documents digitally for online account opening. To further authenticate them they can use biometric verification through facial recognition software to check the person is the same one as in the ID. Additionally, they can also perform AML checks on new or existing clients to see if they are financially vulnerable.
Recruitment and Hiring Services
The hiring of employees is a sensitive task. It should not come as a surprise that candidates tend to lie or misrepresent themselves on their resumes. Thus authenticating identities of employees and making sure their credentials are valid becomes important, not just for recruitment firms but individual businesses as well. Candidates can be asked to submit their employment verification document at the time of joining.
Healthcare and Insurance
One of the most prevalent types of identity fraud is medical identity theft. Scammers can steal medical insurance data of people to purchase prescription drugs or to have medical procedures done. With no viable way for hospitals and pharmacies to verify patients, they used to fall victim to such scams. However, more recently, digital document verification services have allowed them to filter out bad actors as well as more serious fraudsters. Additionally, hospitals and pharmacies can also use biometric authentications to verify the identity of patients.
Identity theft is also often used to gain travelling benefits. Fraudsters often use stolen identities to redeem flight miles and make hotel bookings. This hurts both the travel industry businesses as well as the end users whose identity had been stolen. Therefore, airlines, hotels and resorts should confirm the identities of customers using digital verification tools.
The online retail sector has been immensely affected by internet fraud. They face everything from chargebacks to fines to loss of good reputation. Mostly, scammers can use stolen credit cards or bank account information to purchase goods online. When placing orders and obtaining credit card information, e-commerce websites should digitally verify their customers using document verification or biometric authentications.
I am Anshul Ahuja. I am Ceo and Content Writer who formerly work out of TECHKIDA office. A writer by a day and a reader by night. I Like to learn and share technical tips with you. And I Love Blogging.