ID Verification for Ultimate Subscription Fraud Prevention
Cellular phones were first introduced in the consumer market in 1973 when Motorolla first introduced its handheld mobile phone. Fast forward, almost half a century later in 2019, we are now expecting 5G networks to become mainstream by the end of the year. This rapid progression in cellular network technology has been a challenge for the telecom sector. However, over time mobile network operators have risen to the challenge and kept up with the latest trends. At present, the telcommunications market is a highly saturated one with an extremely high switching rate. Companies find it increasingly difficult to retain customers to come up with innovative services. Amidst all this, subscription fraud is ever prevalent in the sector. Therefore, ID verification presents itself as the perfect solution to counter fraud, in addition to providing a competitive edge to mobile service operators.
Telecom frauds are not a new concept and have plagued the sector for a long while. Subscription fraud is among the most common types of telecom fraud. Criminals use stolen identities and credentials to purchase SIM cards, which later become a headache for the mobile network operators (MNOs). Ultimately this also creates a sense of distrust amongst customers when they find their credentials are being used fraudulently to commit subscription fraud. Online identity verification services can not only reduce the risk of identity fraud in the telecommunication sector but also establish a seamless customer experience.
Existing Practices for Customer ID Verification
Most telecom companies currently use standard, in-person verification for authentications. A lot of other providers have nearly non-existent identity verification measures. Ineffective measures for authenticating users before issuing them service has highly detrimental costs for MNOs. In addition to that, the legal exposure that comes with allowing criminals to use telecom services to commit fraud is massive. The increasing use of unverified SIM cards for illicit activities ranging from kidnapping to terrorism also has regulatory authorities on edge. Therefore, they are also encouraging MNOs to fulfil Know Your Customer KYC regulations effectively.
What does Automated ID Verification Offer for the Telecom Sector?
If increased telecommunication security is not motivation enough, here are a few other benefits offered through digital ID verification for mobile operators;
- Reduced Friction in Customer Onboarding – Online ID verification is faster and more accurate thus is immensely helpful in reducing friction in customer onboarding procedures. Customers often tend to find manual procedures slow. According to a report, 76% of mobile network subscribers prefer single sign-on service from their MNO. The added possibility of error can increase their frustration, thus causing them to abandon the process entirely. Automated solutions allow for instant onboarding procedures by electronically extracting data from IDs, thus enabling frictionless customer onboarding procedures. This also helps in improving customer service operations, thereby establishing customer-centric enterprises.
- Enhanced Operational Efficiency – An ID verification software uses Optical Character Recognition or OCR to extract data from scanned documents, thus eliminating the need for manual verification procedures entirely. A customer’s identity is further authenticated through biometric facial recognition. All these features combine to streamline operations for the telecom sector, thus increasing their levels of productivity.
- Enhanced Security – As detailed before, increased levels of security is the primary reason for implementing a digitised identity verification solution for MNOs. Such systems can catch a fake ID within seconds, thus enabling telecom companies to detect fraud instantly. Such systems are equipped with identifying standard government-issued IDs from several countries, therefore, making it near impossible for the perpetrator to commit subscription fraud. The risk of identity theft is further mitigated through facial recognition ID verification, that matches the image in the ID to the real-time image captured by the user. Digitised ID verification is highly effective as it counters spoof attacks and can identify photoshopped images as well.
- Build Customer Loyalty – Proper and active measures taken by MNOs to secure customer data and identities, can establish trust amongst users thus increasing customer loyalty. Along with increasing security in their systems, telecom companies can also comply with government regulations that require companies to verify customers properly and to keep records of those verifications. By fulfilling these regulations, MNOs can also enhance their reputation in the market and build trust amongst regulators as well.
The Ultimate Solution for the Telecom Sector
Shufti Pro is a KYC verification service provider that offers identity verification services through an AI-powered verification software. It uses a hybrid technology of AI and Human Intelligence to verify users. Not only can it verify users within seconds, but it also has universal language support that allows it to cater to users and clients from all over the globe. It offers the ultimate telecom fraud prevention guide to MNOs and offers them every benefit listed above and more.
ID verification from Shufti Pro is not only the best but the ultimate solution for businesses looking to reduce fraud and enhance their operational efficiency. Through its real-time document verification and online facial recognition, Shufti is able to verify users accurately and seamlessly.