Criminals are employing advanced techniques to profit illegally from industries such as e-commerce, finance, healthcare, online gaming, and others. A survey revealed that the number of reports of identity theft rose by 20.33% in 2019. This percentage increased to 20.39% in 2020, when nearly 1.4 million identity fraud cases were reported. These real-time identity thefts can cause serious fraud. Stolen or forged IDs can be utilized for terrorist funding, banking fraud, money laundering, and human trafficking. Therefore, a robust identity verification system is becoming increasingly necessary to implement efficient mechanisms for the prevention of these types of fraud. Businesses should use reliable identity verification services in this technologically advanced world to combat sophisticated criminal tactics.
Importance of Identity Authentication in Different Businesses
Identity verification and other facilities like face-scanning for unlocking mobiles, digital banking, and hurdle-free boarding at airports are all being innovated by technological advancements. However, according to Shufti Pro News, these changes have also raised the possibility of fraud attempts. Fraudsters use cutting-edge techniques such as Photoshop to alter identity documents and commit ID fraud. This allows them to circumvent the identity authentication procedure and illegally onboard platforms.
Due to this, regulatory authorities are implementing strict KYC regulations as well as non-compliance fines. Therefore, sectors like e-commerce, gaming, finance, and others require efficient solutions to ensure that they are serving real clients. The following sectors have the highest demand for identity verification:
The e-commerce sector is developing along with other industries by providing online payment options, identity verification, and purchasing power. This has given cybercriminals a place to operate. They violate privacy laws and commit synthetic identity fraud in order to buy restricted items and pay with cards belonging to other clients.
For this reason, the e-commerce industry should use a biometric identity verification system since simple data verification is not enough. This enables retailers to adopt identity verification by implementing various checks like voice recognition, facial verification, and so on.
Healthcare providers provide patients with digital onboarding facilities so they can quickly access medical care. The operations are not the same as before the pandemic. The medical facilities are providing “telemedicine,” a type of visual medical assistance so that patients can avoid the inconvenience of long ID verification lines.
However, these changes are bringing about new issues, such as identity theft, bogus medical claims, data breaches, fake payments, and prescription fraud. Criminals use legitimate customers’ information to pay for their medical care and access government-sponsored health benefits. Additionally, scammers’ attempts to use digital onboarding to reveal patients’ sensitive information can have fatal results. Therefore, healthcare facilities must implement precise identity authentication techniques.
ID verification is more important than ever for the financial industry as they modernize their services. For example, new operations like digital payment methods, paperless purchasing, and online transactions are introduced. On the other hand, criminals are using innovative methods to commit data breaches and identity theft. Therefore, to combat criminal threats, banks and other financial institutions should create reliable methods for identity theft protection.
The AI-powered solutions enable institutions to access international markets while providing real-time identification. This enables businesses to quickly verify clients while monitoring their behavior to spot any suspicious activity and alert the concerned authorities.
Government departments are also vulnerable to criminal threats just like other sectors. Identity fraud is the most common type of this category. The US lost more than $200 billion by the year 2020 as a result of false unemployment claims during COVID-19. Criminals use fake information and documents to bypass the identity authentication process and illegitimately apply for benefits. Fraudsters apply for benefits illegally by using false documents and information to get around the identity authentication process.
According to Shufti Pro Funding, government officials can make sure only rightful people are taking the benefits by using an accurately verified identity.
The COVID-19 pandemic has greatly increased the use of online platforms. Online banking, healthcare, gambling, and gaming are a few examples of online services that people use excessively. The sudden growth of these operations has also led to an increase in identity theft fraud. Global industries are being exposed by criminal threats to a range of negative effects, including a loss of customers and hefty fines for non-compliance. Because of this, the demand for robust identity verification methods has massively increased. Therefore, businesses should use AI-powered identity verification services to make sure they are helping the right clients and not falling for fraudulent businesses.