Cybercriminals are upsurging at an alarming rate which has raised major concerns for many businesses. Impersonating the identities by stealing personal information can cause serious damage to the organizations in the case of financial and reputational loss. Multiple companies have started to find reliable solutions for enabling a secure customer onboarding process. Identity thefts can lead to conducting illicit crimes of account takeover, illegal use of stolen credit cards, and could also become a source of leaking confidential information about the clients. Identity verification services can help in effectively mitigating these crimes as businesses will be able to onboard customers by verifying them and will deal with the financial risks associated with them in the best possible way.
Post-Covid Scenario of ID Verification
Several companies have been using the traditional methods of identity verification but since the Covid-19 pandemic, businesses have transformed their ways of identity authentication. It is mainly because these services have become futile since fraudsters schemed new ways of carrying out sophisticated crimes. Even the post covid scenario has generated the need to implement productive strategies to enable the digital onboarding of clients. People have now gained an understanding of dealing with online activities due to the recent pandemic. But it has also caused them to become vulnerable to the various types of identity theft as fraudsters find loopholes to target them in conducting malicious crimes by digitally manipulating them.
Mitigating Risks with Biometric Identity Verification Systems
Digital ID verification has great significance in dealing with scammers on a wide scale. Advanced technologies have led innovations to rise in the market worldwide. Biometrics have eased the way for onboarding clients in a more protected way. Moreover, biometric identity verification systems allow companies to verify clients by extracting information based on a client’s face attributes. As every human contains its own set of unique facial features it becomes challenging for fraudsters to impersonate an identity. Liveness detection enables the analysis of the client in a more detailed and accurate form. It can help to minimize the time taken for conducting identity verification as a verified identity can be given access speedily due to its AI-based algorithms as compared to performing identity checks manually each time a client is required to be onboarded.
Basic Types of Identity Thefts
With identity thefts increasing worldwide, cybercriminals utilize to access businesses or website databases or invade a user’s account illegally to obtain sensitive information digitally. As per Shufti Pro News, online identity theft is a serious crime by which fraudsters steal users’ information to use for personal gains, often by making purchases to a third party. Some common types of identity theft are listed below:
Synthetic Identity Fraud
It is the latest form of conducting identity theft in which criminals use a piece of some false information and collaborate it with a person’s original information to fake it as a genuine document. Since it is having a combination of real and fake information, it is difficult to detect since fraudsters leave no trace behind them. This type of fraudulent activity is generally carried out to gain access to the areas of territory where they have been blacklisted. It is difficult to interpret a person’s intention using a synthetic identity.
Medical Identity Theft
Hospitals and the healthcare industry are also prone to identity theft as criminals can steal a patient’s information to buy age-restricted drugs and to avail of free medical services without getting suspicious. By using such advanced tactics, pharmacists and hospital authorities are unable to differentiate between a fake and a real patient. These kinds of data breaches can prove to be very dangerous.
Financial Identity Fraud
Financial institutions are facing huge losses due to becoming a victim of identity theft as they deal with large amounts of cash daily. Obtaining information to illegally gain access to a user’s bank account to steal cash or request to open an account using the fake information is all required to be protected through identity theft protection policies. The data is further sold in the black market for huge rates by fraudsters.
Wrapping it Up
Modern solutions have been devised regarding identity verification services. The worst consequence of identity theft is severe financial loss and damaging the reputation in the global market. Onboarding a verified identity can provide numerous benefits to the organization since they will be able to develop trustful relationships with the clients in a more prospective manner. Multiple organizations have started to invest in online identity verification services due to their high rate of accuracy similar to Shufti Pro Fundings. This can help to swiftly mitigate the risks of criminalities.