Importance of Identity Verification in Online Platforms
Meta Description: Identity verification helps different online platforms prevent sophisticated fraudulent activities while staying compliant with KYC and AML regulations.
As the world is going digital, businesses are becoming susceptible to identity theft, data breaches, and various synthetic identity fraud. Fraudsters taking the advantage of online businesses are leaving no stone unturned to destroy businesses and fulfill their malicious intentions. The rising number of fraudulent activities on online platforms has raised concerns. Firms are looking for identity verification solutions that provide them with greater security while not compromising their user experience as evident from Shufti Pro news. Thus, AI-powered identity verification services are a great bet for all the online sectors to keep fraudsters and criminals away. Let’s look at the reasons that make identity verification services a must thing in online platforms.
1- Curb the Potential for Fraud
Online platforms are more susceptible to fraud as compared to conventional stores.
Fraudsters are exploiting businesses in whatever way they can to carry out their illicit means. Credit card fraud and identity theft are common in the e-commerce platform. Companies are receiving a large number of requests for refunds on a daily basis whenever any fraudster made an illegal transaction and it costs them a huge. The only way to tackle such crimes is through verifying identities during digital onboarding and for that a robust identity verification service proves fruitful. It reduces the number of chargebacks and in return increases the company’s revenue.
2- Protect Business Reputation
Online businesses have become a breeding area for fraudsters as knowing someone on the other side of the screen is something tricky. This as a result put a dent in the company’s image. Similarly, when a firm gets so many chargeback requests, it automatically loses its credibility in the eyes of clients. All such issues can only be resolved by deploying strong identity authentication solutions that validate users instantly and accurately. By investing in such solutions, companies can protect clients’ sensitive information and makes a positive image in the competitive market. So, many firms just started getting funds like Shufti Pro funding for this purpose.
3-Avoid Lawsuits and Hefty Fines
Identity theft, data breaches, and credit card scams are common in businesses, which might raise concerns about their security. It may result in complex lawsuits from victims of identity fraud. Furthermore, credit card issuers often penalize shops that do not follow stronger fraud prevention practices. There are other firms that provide age-specific products or services. They are mandated by law to confirm the age of the consumers. All of these issues may be easily solved by using AI-based identity verification services that include facial recognition, age verification, and ID verification.
4- Provides a Seamless Client Experience
Customers can save time and effort by using the biometrics identity verification system. It helps clients enter information faster. It also cuts down on the time it takes for users to validate their identities and credentials using face detection and document verification. Clients may finish purchases quickly because the authentication time has been cut to seconds. Robust identity verification services such as face verification can deliver a frictionless experience for companies and their clients, lowering purchase abandonment costs.
5- Reduces Shipping Errors
Both the business and the client are subject to mistakes when they use traditional data entry techniques. E-retailers can eliminate these mistakes with digital identity verification services. In contrast to verifying documents, they use OCR to retrieve information from them. For e-commerce companies, this lowers both the time and the number of errors.
6- Provides Clients with Customized Offers
A corporation can utilize the information collected from an artificial intelligence-based identity theft protection system to determine returning consumers. This also allows marketing teams to better target customers by personalizing products and services. This technique has the potential to improve the customer experience by helping them feel more appreciated, resulting in higher satisfaction levels.
7- Enhances the Purchase Process
A majority of online stores have difficult checkout processes that need users to provide extensive information to complete their purchases. Customers are sometimes required to submit information many times, which adds to their dissatisfaction. As a result, purchase abandonment costs increase, resulting in lower sales. A compelling identity verification technology is one that provides ease for businesses and their clients.
Final Thoughts
Identity verification is what every business needs in this age of digitization. It not only protects online platforms from fraudulent activities but also makes them stay compliant with the KYC and AML regulations. A robust identity verification service is one that provides users with a greater level of satisfaction.
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