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 

identity verification

CRA Looking to Launch Digitally Secure Ways with Identity Verification Services

Canada Revenue Agency or CRA in collaboration with an identity verification service called Secure Key is working towards launching a digitally secure system that will verify the identities of filers, whenever they wish to log into their website. The whole operation is basically centred around the premise that any citizen walking into a government office is able to verify their identity even if they are not carrying their ID documents with them.

Why Identity Verification?

The new identity verification methods will also enable the agency to weed out any criminals and fraudsters. They are also hoping to extend the service in the private sector wherein business from different sectors can use such services as a way of fraud prevention and detection.

The service that the CRA and SecureKey have also been working on is also being tested on banks to allow some sort of collaboration between banks and governmental agencies. This shall enable the banks to authorise their customers’ identities when they log in to their online accounts.

ID verification to Counter Online Fraud

For the moment the service is being tested and fine-tuned for both the companies to use effectively. For the moment the CEO of SecureKey has expressed his commitment to completing the project and his goal to provide id verification in a secure manner that ensures the privacy of the end user. He also conveyed that the services are primarily focused on reducing fraudulent activities across businesses.

Currently, a number of businesses in the private sector including banks and financial institutions are urging for some way to get their systems linked to government databases to verify their users’ digitally and make their systems secure against identity fraud. What they are looking for essentially is to authenticate the users through multiple digital reference points including document verification, face verification through facial recognition and age verification.

On the other hand, they are also trying to test if the service would work the other way round. In that, the company wishes to see if a user applying for a loan at a bank, for instance, could be verified the bank to see if the person in question is really looking to apply for a loan or just trying to get access to finance. That said, the service is still in its testing phase and will take some time to be made available to the public and private sector.

In the identity verification service sector, Shufti Pro is a leading player and provides Know Your Customer (KYC) verification services as a SaaS product. Shufti Pro provides multiple services under the umbrella of KYC services including ID verification, document and face verification, age verification and AML compliance. Shufti offers its services not just in Canada and North America but in over 230 countries all over the world. Its verification process works on the basis of top of the line AI based authentication protocols, that is able to keep the user data secure and private.

Warning Signs

Warning Signs of ICO Scams and the Role of Identity Verification Service

If you have heard of Bitcoins and cryptocurrencies then you must have heard of ICOs or Initial Coin Offerings. ICOs are the rave in the world of business financing; it is a game changer. The advent of the blockchain, the science behind cryptocurrencies, is what eventually led to the event that we call an ICO. Before that, businesses and individuals who wished to get financing for the fruition of their ideas had to go through long and complicated processes in order to qualify for venture capital investments or bank loans. The ICO allows one’s ideas to be crowdfunded with minimum or no time consuming paperwork. The ICO is the IPO (Initial Public Offering) without all the complications and paperwork and instead of Shares you get Coins. The problem arises since there aren’t many fraud prevention checks by governments and other regulatory bodies that are found with other financial platforms and mediums. We will look at the scale of these scams and we will discuss the various warning signs one should look out for when investing in an ICO. Also, we will see how ICOs that have an identity verification service or a digital KYC service have a lesser chance of  being a scam as compared to those without any such service.

The Scale of ICO Scams

In a recent report by Satis Group LLC an independent financial and wealth management company based in New York, USA, found that 80% of ICOs are scams and a small percent actually get their coins to the exchange for trading purposes. For example, OneCoin that worked on multilevel marketing or better known as a Ponzi scheme swindled investors out of US $350 Million that resulted in the arrest of those involved. LoopX ICO is another scam; the company and owners disappeared after scamming more than US $4 million from investors. In a more recent event, Centra ICO creators swindled people out of US $32 Million. The highlight is that this ICO was promoted by boxer Floyd Mayweather and some other celebrities.

ICO Scam Warning Signs

People invest in ICOs in order to get some profit ;as the company expands and improves, the value of the coin goes up and can be traded on various exchanges. Some companies even offer dividends to coin holders, similar to what one would expect from shares that they have purchased. Others offer discounts and other benefits to the coin holder. Whatever the payback we understand that having mentioned the scale of the ICO scams, one might think that there are no legit ICOs. Although fraud protection in this case is not fool proof there are always signs that tell something is not right. All this can be easily secured with a sound Identity Verification system. Lets take a look at these warning signs:

Open Source but An Empty Repository

If the actual ICO is based on a coin or token based on blockchain technology and the creators vouch that it is open-sourced. Then you should be able to see their source code. If none is available on their GitHub or other repository that should ring warning bells.

No Team or None Mentioned

A project especially as big as an ICO has a whole team behind the entire plan that includes developers, marketers and executives. If there are no team details mentioned on their website or if the team seems weak you should double check on the images of the members to see if the individuals have a social media presence or a LinkedIn profile. You should also be able to get in touch with the team members especially the blockchain developers.

The company should have a strong online presence especially on social media platforms.

No Digital KYC Solution or Identity Verification Service

Even though there isn’t a strong fraud prevention measure on ICOs. This is one of the most powerful indicators that an ICO owner is serious about sticking around. As there are certain policies that govern the entities that store the personal information of the general public. To be compliant with the such policies the ICO owners opt for a digital KYC (Know Your Customer) service that is usually provided by a 3rd-party. So this in itself is a good sign that they are investing in a service that helps make them know their customer and comply with the rules and regulations of personal data storage. Besides that, this shows that they plan on distributing their tokens to the investors as the identity verification service that they use also acts as a proof of purchase. To avoid any mishaps and misunderstandings this is an important step on the behalf of the company that is running the ICO.

No Whitepaper, Bad Whitepaper or a Copied One

Whitepapers speak the world about the ICO in concern. A missing white paper, a badly written one and a copied one are all sure shot warning signs. It shows poor planning or rushed planning with little or no research. If the Whitepaper is good, you should still do a plagiarism check. As Whitepapers by Scam ICOs are more or less copied usually word for word from other legit ICOs.

Guaranteed Profits

Another sign that should make you scrutinise the company in concern is if they say they are giving guaranteed profits. There is no such thing in the world of cryptos as you might have picked up by seeing how volatile the market is. If you haven’t you should do your research there as well. Such an ICO could very well be a MLM or Ponzi scheme that will not last very long and result in a loss at the end.

No Plan is Poor Plan

If the company running the ICO does not have a comprehensive roadmap of where and how they will proceed afterwards then do not invest. Because they are planning short term and do not foresee themselves doing anything afterwards. This is a very powerful indicator that they’re going to bail and leave the investors clueless as to what happened.

In Conclusion

Having mentioned the warning signs of ICO scams, as a disclaimer it must be said that there is no guaranteed way to judge the intention of an individual or company. Take reference to the Centra ICO scam the creators spent a lot of money on their promotional activity by hiring celebrities. The fact that some ICO would spend so much money gives the idea that it is legit. Until the time the governments and regulatory bodies implement fraud prevention measures in the industry, the chances of fraud are relatively high. However, a company that is willing to stick around would want to avoid being non-compliant with already existing policies. Therefore, their use of a third party digital KYC and identity verification service is usually a good indicator that the company is serious about its future and its investors’ money.

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