Advanced technologies have assisted businesses to adopt digital transformation in order to streamline their work operations. With technology-enhanced mechanisms, companies no longer have to burden their workers with the more workload that limits their productivity. 

The tech-backed solutions are helping out the businesses to grow and ensure them that they have onboarded legit entities.

The development in technology has made criminal activists more advanced and are easily carrying out frauds like monetary scams, child trafficking, money laundering, terrorist financing identity fraud, synthetic identity theft, database hacks, account takeover, etc via digital means. Digital KYC solutions are the way forward to mitigate such happenings.

Digital Identity Verification

The virtual world in which we reside is accompanying billions of people with immense data. Via digital means, people’s sensitive data is vastly spread over social media platforms and various other websites and can be readily accessed, breached, or hacked by fraudsters. Because of the insufficiency in cybersecurity protocols, customers’ valuable data can be exploited by fraudsters, whereas the disastrous consequences could ruin victims’ life as well as their credibility. 

As technology is periodically evolving, SaaS providers are developing systems to resolve people’s current problems and are transforming them into healthy opportunities. Having in mind the other side of the story, fraudsters are utilizing the same technologies to carry out their illicit activities for personal gains. fraudsters thoroughly analyze the businesses’ security system and determine the vulnerable spot through which they can manipulate or breach them. Using this method the criminals get access to sensitive information and use such data to create fake identities, as well as fraudulent documents. 

In order to halt suspicious activities and to have full control over the digital space, ID verification systems are established by software companies that are streamlined with regulatory compliance. Such solutions are capable of identifying the true identities of customers during the onboarding process and also detect the potential risk linked to them that can harm the system in near future. Digital identity verification comprises both knowing your customer as well as anti-money laundering compliance that are fruitful for the online companies to secure their environment.

Digital Identity Verification- Process

Acquiring Data

First, the customer has to fill the electronic form by inputting all the personally identifiable information like name, ID number, date of birth, etc.

Providing ID Documents

Once the client has filled the form, to back that information they have to upload all the government-authorized identity documents including identity cards, driving license, passports, etc as proof of identity.

Identity verification

In the last step, using OCR/ICR technology the information present in the customers’ identity documents is extracted and is matched with the information that the customer previously entered into the registration form. If both datasets match the customer is good to go.

Digital cybercrimes- Insight Over Few Frauds

Account Takeover Fraud

Fraudsters are mainly targeting social media platforms because such sites contain loads of sensitive information and also don’t have enough security measures. Because of this, billions of data are breached from social media platforms which are used to gain access to the accounts or to create multiple false identities. To get unlawful access fraudsters are predicting old techniques like malware, ransomware, and phishing attacks in order to make victims helpless. Once the fraudster has gained complete control over the victims’ accounts cybercriminals cover them under others’ legit identity and them to bigger problems. carry out illicit activities to defame the victims.

Bullying and Harassment 

Today, due to the insufficiency in the cybersecurity measure and social media platform negligence or careless behavior to enhance their security systems is impacting the customers at large. Using abducted information, the cybercriminals tend to create multiple fake social accounts to harass legitimate entities as well as gain access to their chats in order to demand money by blackmailing them.

Digital Identity Checks- Securing Online Businesses 

Digital Gaming Industry 

Online gaming and gambling platforms are now prone to fraudulent activities. The reputation, as well as the integrity of such businesses, are at stake. The gamers are not finding gaming platforms trustworthy and are not investing or carrying out a transaction that is directly affecting the industry. To make such platforms secure for gamers, they are deploying digital KYC solutions so that they can determine the true identities of players while flagging illicit entities.

Liquor Businesses 

Globally, the drug and alcohol industry tends to provide age-exclusive products that are illegal to be used by minors. The minors are using synthetic identities to exploit the security systems of such businesses in order to avail such products. To prevent minor exploitation, identity verification systems are to be deployed so that kids’ lives could be secured.

Final Thoughts 

Wrapping it up, digital identity verification is the only way of securing online businesses. It is the regulatory obligation as well as the platform’s responsibility to deploy identity verification systems to protect the customers’ identities as well as to increase their credibility.