Online Age Verification ?" A Detailed Walkthrough of the Technology
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In the digitally advanced era, online availability of products and services to a greater extent has transformed the way customers shop and perform cashless transactions and touchless operations. However, with these transformations and uplifts, there rises another concern which is the chances of criminal exposure. Customers’ data is digitally available which makes it easier for the fraudsters to conduct identity theft, data breaches, financial crimes, and minors manipulation.
As evident, digital monetary transactions, online purchases and availing services have become commonplace these days. However, businesses need identity and more especially age verification to ensure that the right customers are getting their hands on products and services. Ever since digitization, easy access to online platforms is not necessarily limited to the authentically aged. Minors are also onboarding platforms and making purchases that are not for them. Therefore, industries need improved digital solutions to replace traditional checks to ensure minors’ security and retain reliability.
Digital Age Verification vs Manual Age Checks
The emergence of easy-to-access adult-oriented (AO) products and services has made age verification a must-have. As per the regulations by the Food and Drug Administration (FDA), the legal age for buying, selling, and consumption of tobacco, liquor, and other AO products are 18. This is why it is illegal for industries to sell these products to underaged customers. If industries fail to do so, they will have to face a complete shutdown and hefty fines. Physical stores are less at risk because they can identify the customers when they enter the store. However, in digital platforms' case, it gets somewhat tricky to know who is behind the screen.
The regulations, however, do not only apply to physical stores or shops, they cover digital businesses as well. The scenarios are alarming in the case of digital platforms because they simply ask for a full name, password, and address in the case of some platforms. Hence, the industries need online age verification solutions firstly to comply with KYC, AML, and KYCC regulations, and secondly to restrict minors from getting exploited. This is why online solutions are better than manual ones as they involve fewer errors because they are backed by AI and machine learning technologies.
How Does the Digital Age Verification work?
Shufti Pro News highlights that age verification online helps industries register and onboard legitimate customers while preventing fraudsters and restricting minors from falling prey to on-site manipulation. The digital verification process has these four steps:
Submission of Identity Information
The customers in this step are asked to upload their personal identity details like full name and date of birth to be filled in the registration form.
Upload Supporting Documents
The end-users are then asked to upload photos of their identity document for instance gov-issued ID card, passport, and driving license.
Extracting Required Identity Data
The age checks solutions then extract the required details through OCR and carry out the authenticity of the documents. Also, detect if there is any sign of forgery.
Verification and Dispatching Results
If the verification comes out to be successful, the end-user is informed of the results while storing them in the databases later.
Significance of Digital Age Verification Services
To begin with, lack of age authentication can cause industries a hefty fine as well as their market reputation. Central authorities have revamped the regulations to ensure that no minor gets access to AO products. And every business either digital or physical is obliged to get the age verified before onboarding the customers. If there is no such verification, it can cause harm to minors by exposing them to criminal risks. Therefore, AI-powered age verification solutions are a must-have for industries to attain the following benefits:
Helps in Retaining the Market Reputation
Online businesses have the prime responsibility to provide a better customer experience. As per the survey by CustomerThermometer, 13???????% of consumers are up to paying an increased cost for a good onboarding experience. Customers’ satisfaction plays a significant role in shaping the reputation of industries. However, digital solutions don't let the industries’ worth get down and help them retain a reliable marketplace. This is because they restrict minors from accessing inappropriate content and AO products.
Reduces the Non-Compliance Costs
The GDPR has its jurisdiction over all vendors and companies regardless of the services or methods in which they offer. This regulation ensures the safety of minors and allows platforms to keep authentic records. In case of non-compliance, industries will have to face hefty fines ranging from $22.5 million to a maximum of four percent of the annual income. Hence, online age verification services help industries to prevent such costs.
Ruby Singh
We Provide Digital Marketing Services in All Over India.
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16 Nov 2022, Wednesday 426 Electronics
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