It’s high time for businesses going digital to put more effort into authenticating their customers. This process should be the requisite before allowing clients to access their online profiles, whether they are banks, e-commerce stores, or crypto exchange accounts. As passwords and log-ins are not enough for this purpose, hacking attempts are making their way to every industry offering digital services.
With every one-third of individuals becoming a victim of identity theft, digital businesses need to establish efficient IDV mechanisms. AI-powered ID verification services are enabling firms to facilitate more customers without the inconvenience involved. To cope with increasing market competition and customers’ demands, integrating a reliable IDV solution is mandatory for digital enterprises. This blog entails methods that identity verification services employ to enhance business operations.
Identity Verification Services – Penning Down Types of IDV Methods
With emerging technological advancements, businesses are shifting their operations online. Digital payments, e-commerce shopping, telehealth, and other services are shaping the customer experience by offering more convenience. However, criminals commit data breaches, steal confidential identity details and use them to escape ID verification. By using several fraud schemes such as phishing, stolen identities, and concealing funds sources, criminals carry out malicious activities.
Financial institutions are currently the most vulnerable to criminal threats. While moving to digital banking, they are facing a dramatic increase in account takeovers, illicit funds transfers, and others. However, with digital identity theft protection solutions in place, institutions can counter criminal activities.
Digital businesses are incorporating robust identity verification methods to counter cybersecurity risks. This way, they can eliminate fraudsters and provide more safety for customers. Moreover, by deploying video, real-time selfies, and document identification, digital businesses can ensure a transparent structure. Further details regarding methods that identity verification services offer include:
Knowledge-Based Authentication (KBA)
KBA is the simplest form of ID check as it involves asking users for information that only they know. It can be their mother’s maiden name, place of birth, and other such personal details. This form of ID verification further involves two types;
1. Static KBA
Businesses often provide customers with auto-generated questions from which they choose desired ones. Answers are stored by the company which makes validation easier. Customers can use these responses during digital onboarding and change or reset account settings.
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2. Dynamic KBA
During this process, the company does not ask any questions to which the customer answers personally. However, they generate responses by using credit history or public records. Hence, only legitimate users can access accounts because fraudsters will be less aware of highly personal details.
Two-Factor Authentication (2FA)
2FA leverages more security to businesses’ identity verification processes. When customers try to access their online accounts, the system asks for a login username and password. For advanced security, users are not given instant access and are required to provide additional information that aids in secure authorization. Customers might have to answer some questions about something only they know.
2FA further includes sending One-Time Passwords (OTPs) or PINs to users’ smartphones. This method of identity verification also involves the use of biometrics to grant access. Customers can scan their fingerprints, voice patterns, or iris/retina for touchless logins.
Verification Across Databases
Database authentication can be of two types, firstly, it involves customer personal identity authentication before granting control to confidential company records. Databases store confidential information regarding financial activities, partnership agreements, employee records, and other crucial details. Exposure of these records can result in legal repercussions. However, with advanced AI-powered identity verification services in place, companies can mitigate unauthorized access.
Secondly, database authentication refers to the use of third-party records for cross-online global identity verification. Digital businesses are wide-spreading their services and onboarding customers belonging to different regions. In this regard, IDV solutions provide more security against identity theft.
Verification Through Credit Bureau
Credit bureau authentication is one of the most reliable and secure ID verification methods. In this process, the company’s confidential data bureau has details stored in a file that they validate users on their behalf. The verified identity is later updated and kept within records for future use.
Biometric Customer Recognition
AI-powered identity authentication solutions come with real-time customer authentication methods which also involve the analysis of biological and behavioral features. These are impossible to replicate and make AI-powered biometric identity verification systems more reliable. It offers the following checks:
- Facial feature verification
- Voice recognition
- Iris/retina scans
- Fingerprint validation
- Vein pattern analysis
- Liveness detection
- Gesture cross-matching
ID verification checks offer various customer authentication methods to empower digital businesses. With biometric recognition, companies can take a step beyond PINs, usernames, and passwords to prevent synthetic identity fraud. Similarly, with AI-powered IDV tools businesses can skip the hassle involved in manual customer authentication methods. Hence, robust identity verification services mitigate fraud risks and ensure more secure operations.