Digitalization brings countless opportunities for businesses and consumers. It allows the market to reach a wider audience, maximize its profitability, and provide business expansions.
However, digitalization can also bring new challenges and risks to industries. As data online becomes more accessible and convenient, bad actors take advantage of identity credentials to perform illegal activities.
Cybercrimes such as identity theft, fraud, and data breaches alarm financial institutions, online marketplaces, and other organizations. This has made it essential to leverage cutting-edge identity verification solutions to protect users’ information and prevent cyberattacks.
What is Identity Verification?
Identity verification is confirming and authenticating a user’s identity before they can access digital services. It provides security measures to protect data and assets from unauthorized access.
With the proliferation of cyber threats, many organizations recognize the advantages of online identity verification in promoting high-level security, improved customer experience, and trust between a company and its clients. Here are other benefits of identity verification solutions:
- Deter Fraud
The banking industry commonly faces serious security risks, such as fraud and money laundering cases. Because of advancing cybercrime, bad actors can easily steal credentials and use them for illegal transactions. This can lead to legal action, client distrust, and loss of profit.
Verifying users’ identities is one of the best approaches to deter cybercriminals. Identity verification solutions add another layer of protection when users transact and process documents online. It allows companies todetermine whether the transaction is fraudulent and provide proactive security measures to address the risks.
- Comply with Federal Laws
Identity verification processes require attentiveness to details and careful handling of information. It can violate users’ privacy and federal laws if not performed correctly.
Institutions should notify users and acquire their consent before processing identity verification solutions. This is particularly important for facial and biometric verification. Consent is needed before they can obtain the user’sinformation and capture images or videos to prove their identities.
- Improves Reputation
Clients prefer to invest and transact with reputable organizations than those with security concerns. Thus, companies strive to build excellent reputations by keeping their client’s information safe and confidential.
When a company employsrobust identity verification, it implies that it cares about its employees’ and clients’ privacy and security. Satisfied clientscanbecome brand advocates and help improve the company’s reputation.
To learn more about identity verification solutions, visit authID.