Remote identity Proofing

The Reason Why Companies Painstakingly Screen Customers

Remote identity Proofing:  generally believe that more customers bring more revenue. But that is not always the case. Sometimes getting more customers can, in fact, mean fewer profits or even a loss. This article looks at the reasons why businesses take great care in acquiring customers.

Screening by Insurance Companies

Let’s start with the striking example of the insurance industry, or health insurance in particular. Selecting the right pool of customers is crucial for them. They need to maintain an acceptable level of risk in their pool of customers. A person living a healthy lifestyle would bring a lesser risk to the pool. On the other hand, a person that frequently eats junk food and does not exercise brings additional risk.
From a business perspective, the less risky customer is more desirable. If the insurance pool contains more customers carrying less risk, the payouts or insurance claim would be less frequent. Conversely, a pool with a higher number of customers that live an unhealthy lifestyle means that the insurance company would have to pay claims more frequently.
Therefore, it makes perfect sense why companies invest considerable time and effort in screening customers.

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An Example of Bad Screening Process

Say, an Insuretech firm (an insurance firm that primarily relies on tech innovation to earn revenues) uses the strategy of entering the market by providing insurance cover to those people that have been rejected by other insurance companies. This will not be a sound marketing plan.
The people who have been rejected by other insurance providers are likely to be carrying high risk. This would translate into frequent payouts (cash outflow) for the novice Insuretech company. They need good customers that pay their premiums consistently and are less likely to file a claim.
Another angle to look at this business equation is that when a company accepts more of ‘bad customers’ (high-risk individuals), it puts the burden on the good customers to increase their premium amounts. Business needs to generate consistent profits. Hence the emphasis on devising a strategic customer selection criterion.

Ethics Should be Part of the Business Strategy

Be it insurance or manufacturing, ethics play a critical role. For example, if a screening process results in a rejection list that contains more people of a certain race, demographic or ethnicity, this could be construed as discrimination. In some cases, the company might even incur a penalty under the law. Yes, it is not easy, unintentional breaches occur as well.

Using Machine Learning for Remote identity Proofing

Companies can use machine learning to screen customers. Consider a database where the management is setting filters for screening. For example, they might set the minimum income threshold of 120,000 euros to sell life insurance cover. But with machine learning, they might input ‘apparently’ uncorrelated elements such as if they take the bus to work or use carpooling. These parameters are neutral.
But even an apparently harmless filter such as ‘the number of rooms in their house’ could result in a rejection list that might indicate discrimination. Machine learning, data science in particular, can reveal correlations between elements that would not make sense to humans.
Strong coordination between data scientists and compliance can be a win-win. Companies could screen customers more effectively and still remain compliant.
In fact, businesses can refine their screening process by using compliant AI and machine learning screening. This is cost effective as well due to remote identity proofing. Real time identity proofing process refines the onboarding process for companies.
Screening customers is time consuming but when done effectively, the rewards are plentiful. Businesses do not just want every customer out there. Onboarding needs to be carefully aligned with the business goals while remaining compliant to regulations.

Id Verification Services

What are the Different Types and Solutions of ID Verification?

Customer identification is not an option for some businesses, it’s a must. Ignoring due diligence could get them in legal trouble. This article looks at the types and solutions of ID verification. It also looks at why customer due diligence is critical for financial institutions, and what they should look for while evaluating ID verification services.

Types of ID Verifications

Different companies require different types of ID verifications. The ‘type’ depends on the nature of the business. For example, banks have more security checks and layers, as opposed, say, a website, that simply wants to collect verified email addresses. 

Biometric is the most common form of identity verification. It verifies an individual through one or more unique biological traits. Fingerprints, retina and iris patterns, etc. are the classic methods of biometric verification. Add document verification to it and this combination fortifies the identity verification.

Drivers Licence, passport, a government-issued identity document, are the most common papers used in this process. Additionally, a document issued by a credible organization such as the credit bureau might also be used. 

For instance, if a business would like to; identify an individual online, verify their passport, and then match their live face with the picture on the passport, this can be done in no time. How? Let us show you. Shufti Pro offers a free demo. 

Who Regulates ID Verification Services?  

ID verification services help companies achieve anti-money laundering (AML) and know your customer (KYC) compliance. In the US, the Financial Crimes Enforcement Network Fincen is the main body regulating the compliance procedure. In the UK, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) – under the Financial Conduct Authority FCA –  checks the AML compliance.

Similarly, other countries have their own regulatory bodies that ensure that banks and financial institutes (FIs) follow due diligence. 

What about the Old Form of Verification?

The old style of identity verification, known as knowledge-based authentication (KBA) asks personal questions from the user to verify their identity. This process is still used as an alternative. However, this is not considered as safe; information about someone can be found easily through social media. 

In addition, KBA is slow. Answering questions about someone’s pet’s name or their first school can be irritating. People want instant access; one-touch should unlock phone, doors, start a car, give access to the bank account and on and on.

There are several ways verification solution providers help businesses. Since the majority of businesses operate online, they need services that can be integrated into their business through the internet. 

Integrating Verification Solutions

APIs are used extensively to connect business portals with verification solution providers. These are used for desktops and websites. Similarly, plug and play solutions are available for Android and iOS devices. And in case, a company does not have a team of developers then hosted verification solutions are also available. Check out different integration options at Shufti Pro.

The world demands faster services; faster browsing, faster package delivery, and of course faster verification. Solutions such as Shufti Pro that use artificial intelligence and machine learning verify customers in real time. This is especially helpful for businesses since they fear the loss of revenue from the friction that compliance processes create.

Electronic Identification

Global businesses face an additional challenge; they have to comply with regional as well as international regulations. This can get complicated. Not many identification services can truly call themselves global. Accurate compliance rests on exhaustive legal and technical work, integrated with the business process to ensure streamlined and compliant user experience.

Trustworthy services mitigate risk by taking the burden of customer verification from companies. It also helps reduce revenue losses due to ID fraud. Trust increases which creates an aura of safety around the business. People like to do business with companies they trust, which check all the safety boxes. 

Id Verification Services help increase customer retention and acquisition. They also assist with due diligence. What this means is that services check the customer’s identity across different lists to make sure that the person is not a financial risk to the company.   

Documents Verification

An entire universe of documents is used for verification. For instance, Shufti Pro verifies 3000+ different types of documents. Among other tools, we use optical character recognition (OCR) to read and verify documents. It reads documents – including handwritten notes – like a human.

Data Sources

A truly helpful verification solution should be robust in checking a customer’s identity across sanction lists and watch lists. These include, among others; the anti-money laundering list, anti-terrorism, and politically exposed person (PEP) lists. This highlights the growing need for customer identification. Shufti Pro checks a person’s name across 1000+ sanction lists plus 3000+ databases. Its own AML database updates every 15 minutes to ensure the most accurate compliance.  

Bear in mind that the quality and authenticity of the database the verification reliable. For high-risk transactions government, credit, and utility data sources serve the best. For low-risk processes or as a supplement, the solution providers might use consumer sources.

Customer Due Diligence

What is Customer Due Diligence CDD?

Customer due diligence is a process that helps achieve KYC and AML compliance. Background checks, customer identification, and verification are standard diligence procedures.

What is Enhanced Due Diligence EDD?

Sometimes a customer carries additional risk, and plain due diligence just doesn’t cut it. They might need constant monitoring. Some politically exposed individuals (PEPs) fall in this category.

A credible identity verification service should;

  1. Ascertain the identity and location of the potential customer.  This will not only help to know your customer but it will give you an insight into their business. A combination of biometric verification and document verification is effective in achieving that.
  2. Give you clear and concise reporting. If you have to sift through layers upon layers of useless information before you get to what you were looking for, then you might reconsider your decision. 
  3. Alert you if there is a high-risk profile that might need EDD. Also, check if it has the capability of frequent or consistent monitoring.

An aspect that lies in the periphery is third parties that also need to go through CDD. Your business might have partners and collaborators, which have access to your resources. It makes perfect sense to vet them as well. See if your service takes care of ‘know your customer’s customer’ or KYCC.

The difference between KYC and KYCC is minimal. Only the subject changes in KYCC, it’s your customer’s customer under verification check. Verifying; identity, location, the nature of the business, etc. remain the standard. All of these ensure that your partners are not mixing their dirty money in your business.   

To Conclude

Most businesses find it not only convenient but feasible to hire the services of a credible provider regarding compliance. It surely is a steep climb in keeping up with the latest regulatory changes regarding compliance. But, you should do your due diligence on your potential verification service. Find out who their existing clients are. This is generally a good sign of competent service. Check out Shufti Pro’s client portfolio For ID Verification Services.

Millenials Bank

Why Millennials don’t care about Conventional Banking Services?

Millennials are different from the baby boomer generation. They earn less than what the previous generation was earning at their age. It is odd that the banks have been unable to capture the market of millennials – the perfect target audience right now. However, faster customer identity verification can make banks millennial-friendly. 

Overview of Millenials

Millennials are the first of their kind – the true digital natives! 

They are internet savvy and armed with smartphones, which they check dozens of times a day. We are talking about people currently in the age group of 18-34. Smartphones play a huge role in their lives. 

The banks have started to think in terms of apps and online services. Also, the young generation is prone to fast internet.

What does internet speed have to do with customer identity verification?

A lot!

Banks are not selling toys or stationery. They have to comply with the financial regulations in providing their services. Say, a millennial wants to open a bank account. The ideal or expected way would be to open it over the internet. But not many banks are providing these services currently.

Why Banks have a hard time Capturing Millenials 

The millennials are not happy with the conventional banking system. They do not have to depend on any particular bank or service in most cases. An army of Fintech companies and products are swarming the markets. 

But despite the banks’ marketing, they are not there where they would like to be, in fact, they are far from it. If there is a bug in the app of a bank, the young customer would not like to wait for it to get fixed. They would like to know, which service is better and faster. 

Moreover, the banks have not yet figured out the perfect products that cater to this market. Millennials are putting off buying large ticket items but, in the future, they will be holding a significant amount of wealth.

Cybercrime is the elephant in the Room 

Let’s address the elephant in the room; privacy and security. We are spending more time gawking at the screens of computers and phones than ever before. You can buy stuff online, apply for a visa, date someone, and the list goes on. However, among this significant amount of data, security is of utmost importance,

Privacy breaches, hacks and other forms of cyber attacks have made this generation weary and cautious of banks. Since the majority of wealth exists digitally, this raises concerns for privacy.

A Safe and Bright Future

One obvious tool to handle security concerns is the verification of identity. When a customer is about to send or receive payment, the verification should be foolproof. This relates to the identity of the user. 

Each time we interact online, it leaves a footprint, which creates their digital identity. As technology gets more advanced, so do the tools. Banking and security services that are powered by AI and machine learning can collect the data better, faster and with better accuracy. Faster identity verification solutions are a healthy sign for banks. 


There are troves of rich data available for businesses. How fast banks capture and utilize it to offer banking products to customers will define who can corner this market first. Banks need to get aggressive in integrating state of the art technology in their services. Otherwise, more technology-based services will take over.

Identity verification services

12 Ways Identity Verification Services Helping Online Businesses

The online marketplace has a culminating presence in the business world. Worldwide e-commerce sales are expected to reach an astounding $4.8 trillion by the end of 2021. Additionally, the cumulative number of online shoppers reaching over 2.1 billion. Moreover, recent studies have reported a 277% increase in global e-commerce sales over the past few years. Online merchants must fight to maintain their competitive advantage when stakes are this high. An automated Know Your Customer (KYC) verification solution can enable them to build a seamless experience. Here are 15 ways in which online businesses can enjoy identity verification services.

Ways in Which it Enhances Security


  • Clamping Down the Potential for Fraud

Online businesses, in particular, are more prone as well as vulnerable to fraud. Cases of identity theft and credit card fraud are common in e-commerce stores. Businesses often receive requests for refunds when a fraudulent transaction made. An identity proofing solution helps in curbing the potential for fraud by verifying users remotely. This results in the reduction of chargebacks and an increase in profits.


  • Protect Your Reputation in the Market

Online stores that are vulnerable to data breaches and has shoddy cybersecurity systems tend to build up a bad reputation in the online market space. Similarly, when a company incurs one too many chargebacks, it tends to lose its goodwill amongst its customers. This can be remedied by implementing an identity authentication method that can verify consumer identities within seconds. By fixing the loopholes in their security structures, businesses can protect their user data as well as protect their reputations in the market and among customers.


  • Shield Customers From Inflated Prices

Online frauds including identity theft and credit card fraud end up increasing chargebacks and fines for businesses. This, in turn, makes a dent in the company’s bottom line and thus forces them to increase their prices to cover these costs. Retailers can protect customers from price increases that are uncalled for. With a sound KYC system in place, businesses can eliminate the threat of fraud in the first place.


  • Avoid Costly Lawsuits and Fines

Frequent cases of credit card fraud and identity theft in a business can lead to questions about its online security. It can, therefore, lead to elaborate lawsuits from victims affected by identity fraud. On top of that, credit card companies also tend to sanction merchants who do not observe better fraud prevention measures. Additionally, there are businesses that offer age sensitive products or services. They are legally bound to verify the age of their users. All these problems can be easily addressed by an identity verification system such as Shufti Pro that offers an AI-based solution for Identity verification services that also include age verification services along with facial recognition and ID authentication.


  • Protect Your Customers

The foremost advantage an identity authentication system presents for businesses is that it enables them to protect their customers from the fallout of fraudulent transactions. Identity fraud can go unnoticed for weeks, even months on end, allowing the perpetrator to accumulate charges on a person’s credit card. Online ID verification instantly detects a fraudulent user and blocks his/her access before they can cause any significant damage.

How Identity Verification Services Can Improve Sales and Conversions?


  • Enhancing the Purchase Process

Over 13% of online customers abandon their purchases due to poor and lengthy customer verification procedures. A number of online websites have complicated purchase processes that require elaborate information from customers in order for them to proceed with their purchase. Sometimes customers are even asked to enter details more than once, thus increasing their frustration. This eventually leads to higher purchase abandonment levels which ultimately drives down sales. An efficient identity proofing system for customers can make life easier on both sides.

With a system like Shufti Pro businesses can implement OCR (Optical Character Recognition) to extract data from a user’s documents verifying their identities at the same time. It significantly reduces the time for data entry and allows for increased accuracy, thereby reducing human error. Automated KYC systems have therefore made the purchase process easier for both the customers as well as retailers and has consequently resulted in increased sales.


  • Reducing the Cost of Online Fraud

As the rate of online frauds decreases with a more efficient user verification process, the resultant costs naturally fall. The reduced costs ultimately lead to increased profits creating a win-win situation for online retailers. It also reduces the number of chargebacks and fines for companies, ultimately leading to an increase in their revenues.


  • Personalising Offers for Customers

Once a customer’s details are obtained through a verification system, a company can make use of them to identify returning customers. This also enables marketing teams to personalise products or services for customers and target them in a more efficient manner. This practice can significantly impact customer experience, making them feel more valued, resulting in their prolonged lifetime value.


  • Complying With Global Regulations

One of the biggest incentives for businesses to implement an effective KYC system is to comply with global compliance regulations. Regulatory authorities – both national and international – Identity verification services have been highly active over the past couple of years to curb money laundering activities. In an attempt to make sure that businesses comply with regulatory requirements, authorities have started sanctioning banking institutions. Over the past decade, the financial sector has faced nearly $26 billion in fines.

KYC services enable businesses to comply with worldwide regulatory requirements effectively by identifying and verifying clients more accurately. Service providers like Shufti Pro also offer AML screening services that allow businesses to screen high-risk individuals through global sanction lists to identify Politically Exposed Persons (PEPs). Online identity verification, therefore, makes complying with global regulations easier for businesses.


  • Building Trust Among Customers

When online businesses take active measures to prevent fraud and comply with legal and ethical obligations, they tend to build trust amongst customers. Merchants that experience little or no cases of credit card fraud tend to have a good reputation amongst customers and end up acquiring customers for life.


  • Providing a Seamless Customer Experience

Another advantage of online identity authentication services is that it reduces a significant amount of hassle for customers. It tends to reduce the time it takes for the customers to enter their details. It further reduces the time it takes them to verify themselves and their credentials through facial recognition and document verification. With verification time reduced to under a minute, customers are able to complete the purchase within minutes. KYC service providers like Shufti Pro are able to provide the sort of seamless experience for businesses and their users that can enable them to reduce cut down their purchase abandonment rates.


  • Reduce Errors in Shipping

Manual data entry methods are prone to errors – both on part of the merchant as well as the customer. With digital identity verification, e-retailers can reduce these errors through a service like instant capture from Shufti Pro. The service uses OCR to extract data from a user’s document in addition to verifying them. This reduces both the time and number of errors for e-commerce retailers.


Try Out Shufti Pro Identity Verification Services 

Age Verification

How Online ID Verification Supports Age-restricted Sellers?

The online stores selling age-restricted products like gaming services, medicine or drugs are in severe need of performing age verification. According to a recent study, online spendings of children are £64 million yearly which they do without the knowledge of their parents. 4 out of 5 children are making transaction through their parents’ bank cards, PayPal accounts and online accounts.
A recent study shows that two-thirds of teenagers are financially active online. They spend a lot on buying age-restricted stuff which includes gaming services, cigarettes, alcohol, cannabis, weapons, and solvents. Nearly a quarter of teenagers buy movies and video games which are intended for the higher age group. CPP, research for credit card companies shows that 1 out of 7 purchases are done by the children aged between 7 and 16.
The part of human brain that correspond to personal pleasure grows faster than the parts contributing in risk analysis and decision making. Therefore, their activities should be monitored actively and continuously to avoid several issues that might cost more than the bills teenagers pay online. Age verification is a lawful requirement in many countries to allow online activities. Online stores should have a proper age check which makes sure that on the other side, product is not sent to underage customer.

Here are a few industries that need protection against under-age identity fraud

Gaming Industry

Every industry has some set guidelines that have to be followed in order to avoid regulatory scrutiny from their concerned regulators and there are quite a few regulators governing the online gambling industry. Any online gaming and gambling platform that fails to comply with these regulations have to face huge revenue loss, strict disciplinary actions, and hefty fines.
According to a study by the Gambling Commission, 450,000 children are involved in the online gambling process. These children are the ones aged between 11 and 16 and most of them take drugs. For online gambling operations, strict rules are defined. The children under 18 cannot be part of the gambling community. The legal age is 18, in some areas it is 19 or 21. The online buying by less than the judiciary defined age is not allowed and is considered illegal.
Online Gambling is not the only digital menace haunting minors on cyberspace but there are multiple age-restricted products that teenagers are buying online such as

Vapes and e-Cigarettes

According to the 2018 report of the US Food and Drug Administration (FDA) regulations, 78% of high school students are using e-cigarettes. In just one year (2017-2018), e-Cigarettes usage has increased from 11.7% to 20.8%. A proposal is given by the FDA in which access to nicotine products is restricted to teenagers (under 18).
UNC research shows that online vapes and e-cigarettes are easily available at very cheap prices available in multiple flavors delivered on demand. There is no strict verification process available online and vendors are delivering tobacco openly. Now, due to strict local regulatory rules, online vapes and cigarettes have been baned to the under-age community and the judiciary has made age-verification mandatory in the regulatory.


The study of new data from Slice Intelligence shows that alcohol delivery has grown 32.7% in 2017 and it is increasing by the average rate of 3% every month. Online orders through mobile apps have increased to 20% by teenagers. This increase in underage drinkers shows a great risk which online marketplace pays in the form of heavy fines.
All the online stores should make their system free from under-age buyers. This will not only leave a negative emphasis on the health of teenagers but also the reputation of the company will be damaged.

Cannabis and Medical Marijuana

The mainstream of legal deliverance of cannabis globally has impacted everything. The cannabis industry is one of the fast-growing industry today. According to BDS and Arcview Market Research, the global spending of cannabis by consumers will increase 3 times ($32B) by 2022.
Medical Marijuana is supplied legally in the US. Teenagers are taking advantage of it and online stores are delivering their consumers without any proper age verification.
Many companies take service from the third-party delivery system who delivers the order to their customer. As they need to quickly deliver a large number of orders, the verification at a delivery time can be somehow dodged and it would be hefty for the third party delivery system to send the parcel back to the company with additional overhead. Also in many cases, the customer leaves a note by the door; ‘not at home’. So there is no way for the delivery person to identify and verify the identity of a person.

Online ID Verification is the Solution

Online ID verification helps in ensuring compliance especially for the companies selling age-restricted products online. For the verification purpose, customer’s personal information should be obtained and matched against an independent database. This data could include name, date of birth, geolocation, email, contact number and other essential information based on the company’s requirement. The information is matched accordingly to verify the identity and is further processed with the transaction. The onboarding process should be quick to ensure good user experience, but age should be verified through the instant age verification to reduce the risks of online fraud by teenagers.

What other methods can help verify the age of the customer to allow product delivery?

In this new era of Artificial Intelligence (AI)-based technological advancements, age verification can be done through facial recognition, image verification (with liveness detection), identity card verification and biometric. The person who wants to buy something will have to first verify his age in the onboard process. AI techniques will match the identity (through anyway) of the customer with the stored database and will give the status of accepted or rejected. In this way, it would be hard for the under-age community to buy restricted products online without any proper consent.

Identity Theft is one of the major concerns of customers… How to deal with it?

For any online marketplace, it is mandatory to run the system under certain compliances proposed by the government. In that regulatory compliance, online stores make sure that the customer identity is used for the legal purpose and will not be sold to any third party. Any flexibility regarding privacy affairs is unacceptable by the law and will result in heavy fines and strict lawsuits against the company.


The online marketplace that sells age-restricted products should ensure that through their system, under-age children are not making any transaction. For this, there should be age verification of the customers onboard which can be achieved through AI-based techniques. Age verification helps the seller to allow purchases only for adults and reduce the chances of usage of age-restricted products by teenagers.

Digital Identity Verification

Utilising Digital Identity Verification for Imparting Better Healthcare

The importance of patient identification and verification is crucial in the healthcare sector. According to a paper by the World Bank, patient identification can be critical in imparting fast and effective healthcare services to patients and can do wonders for public health management, thereby helping achieve sustainable development. Digital identity verification systems can assist healthcare providers to not only to improve the quality of healthcare they provide but would also enable them to improve organisation and sharing of medical records, ensure insurance claims and reduce medical fraud by protecting patient data.

Healthcare providers in a lot of countries are still using paper-based systems to maintain patient records. The handful of providers that do use digital systems have stagnant IT systems that are incapable of processing and transferring data. This has lead to weak planning giving rise to capacity issues and inefficient care for patients. Relevant government institutions also find it difficult to provide better access to healthcare if they have no way of identifying and verifying individuals. This also keeps out individuals who are in need of necessary healthcare services but cannot have access to it due to lack of identification.

How Digital Identity Verification Can Play a Role in Healthcare

Different processes in the healthcare sector need the identity of patients. From providing the proper treatment to maintaining patient records, the identity and verification of patients is extremely important. There are a number of ways in which digitised identification systems can enable healthcare providers to impart better medical services;

  • Efficient Data Collection for Planning and Research

With the proliferation of advanced technologies like artificial intelligence, big data and cloud computing, systems are now available that have automated entire processes for different industries. Particularly for sectors are data rich, like finance and healthcare, AI and its applications have provided amazing solutions. Digital identity verification systems can, therefore, allow access to patient records and histories in an instant. It allows healthcare providers and government ministries to efficiently plan according to the data collected through these systems. It also allows them to access data for research and development purposes.

  • Managing Patient Treatments and Records

Through proper automated identification and verification procedures, healthcare providers can manage and access patient records instantly. It also allows transfer and sharing of data amongst healthcare institutions, therefore reducing duplicate testing, and allowing for swift and efficient patient care. Patients can control the sharing of personal information as well. As records are updated in real-time, doctors and support staff are able to gain access to patients’ condition instantly by only identifying them effectively.


  • Improved Insurance Management

Filing for insurance claims can be a tedious process for hospitals. Automated patient verification systems can provide hospitals and clinics with efficient systems that can process insurance claims and assess the benefits that are included in a patient’s insurance program. It also allows patients to prove that they have access to insurance and have access to healthcare benefits and programs. Outdated systems can sometimes result in double payments, causing trouble for both the patient and healthcare providers.

  • Protecting Patient Records

With increased automation of information, cybercrime has also increased tenfolds. It has equally affected the healthcare sector increasing the ratio of medical identity theft. Patient records are increasingly being sold on the dark web and fetch a significant sum for the seller. Therefore, the protection of patient records must be equally important for healthcare providers. Online identity verification effectively eliminates the risk of fraud and identity theft. Measures must also be taken to protect patient information within the healthcare facility. Putting up anti-malware and anti-virus systems and firewalls are no longer enough. Hospitals and clinics need to robustly encrypt their patient records in order to thwart any cybercriminals.

By properly identifying and authenticating patient identities through automated systems, they can also make sure that a person is not using stolen information. Through digital document verification healthcare providers can identify patients. They can further authenticate a patient’s credentials through an online facial recognition system. This can enable hospitals to establish a true identity of a patient and provide them with relevant care effectively.

Shufti Pro is an online identity verification services provider that uses AI-enabled protocols to identify and verify users for a number of different industries, including the healthcare sector. It produces verification results within 30-60 seconds and allows for instant verification of users. The healthcare sector can benefit from its ID verification services in the form of document verification and face verification. Shufti Pro also has an OCR-based data extraction system that can extract information from documents in an instant. It uses a RESTful API and mobile SDKs for fast and efficient integration into an existing web-based interface of a company.

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Identity Verification Services

Can Identity Verification Services be Cheated by Hackers?

The latest intervention in the industry of fraud prevention services is identity verification services. In the hopes of countering fraud, banks, financial institutes and online businesses have been implementing verification checks to authenticate the identities of their clients. With the proliferation of access to the internet and online services, it is becoming simpler for cybercriminals to come up with ways to defraud online users and businesses. To counter this threat, anti fraud solutions like Know Your Customer or KYC checks have been introduced by companies.

But how safe are identity checks, is the real question. Can they too be bypassed by hackers and fraudsters? Each verification service has its own benefits and flaws, some more than others. Discussed in detail herein are individual identity verification methods and how they can be tricked by hackers.

Knowledge-Based Authentication

Knowledge-based authentication or KBA is a method of identity verification where the user answers a set of questions to establish his or her identity. The questions are mostly related to their financial, personal or consumer history. Businesses use different types of questions according to their requirements. Often questions are predetermined and standard which are called static KBA. Another type of KBA is Dynamic KBA wherein the questions are more diverse and obtained from a wider range of personal data. These questions are mostly based on a consumer’s behavioural patterns.

Now comes the question of how KBA can be bypassed. Normally an online user’s personal details like birth dates, social security numbers, addresses can be acquired from the dark web for a small fee. This information can be later used by the criminal to override the authentication process. However, even if a hacker is unable to access the dark web, in the age of social media it is ridiculously easy for anyone to obtain a user’s personal information through their SM accounts.

Finger Print Scanners

Fingerprint scanning is a simple method of biometric verification. Since iPhone launched its fingerprint scanners in 2013, nearly every new phone has followed suit. The process for fingerprint authentication is quite simple. A user’s unique fingerprint is stored in the system’s database and is authenticated every time a user scans their fingerprints through the scanner.

Read: Identity checks ; A Profitable Business Strategy or Another Business Expense?

However, smart scammers are able to skirt fingerprint scanners simply with a picture of a user’s finger. Any picture taken by an ordinary camera is printed after obtaining a readable fingerprint through a opensource software. The picture is then spread onto a latex or wood glue to obtain a fake fingerprint. All this may sound something out of a movie but is surprisingly simple to do. Many cybercriminals can thus breach a person’s account through fake fingerprints as well.

Two Factor Authentication

Another identity verification service for businesses today is 2 factor authentication or 2FA. It basically verifies users through their mobile phone numbers. A system generates an authentication code for a user once they enter their phone numbers. They receive the code via text message which when entered by the users grants them access to their accounts.

There are a number of ways by which cybercriminals can breach the two-factor authentication method. There are often vulnerabilities in the mobile networks that allow them to access incoming and outgoing data from a person’s phone. Phishing hacks are also used to plant malware in a user’s device which can then be used to initiate the 2FA process.

Using Identity Verification Services to Delude Hackers

Although identity checks like the ones mentioned above are designed to keep fraudsters out. However, with a little effort, each one can be breached since they have their flaws individually. The key then is to use multiple layers of KYC checks to keep criminals out. If you are thinking that multiple levels of security can take time for a user to access their accounts, you are wrong. A KYC verification service provider like Shufti Pro offers digital verification solutions that take under a minute for a user to perform. Some of these verifications include document verification, facial recognition and address verification checks.

Document verification allows a user to scan his/her ID documents (ID card, passport, driver’s licence etc.) which are then authenticated by an AI-based authentication software. Facial recognition is an even more foolproof method for identity and age verification. Often used in combination with document verification, facial verification uses facial recognition software to scan a person’s facial features in real time.

Identity Verification Services – the Future of Fraud Prevention?

The world of fraud prevention is advancing rapidly and has a multitude of identity verification services that businesses can utilise. Shufti Pro is providing cutting edge KYC checks by providing multiple layers of security to a company’s system. It authenticates the users’ identities at an industry best time of under 60 seconds. Shufti Pro has a restful API and gives seamless integration to any web-based module of a business.


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