It is crucial for businesses to implement identity checks and other fraud prevention techniques in their business practices. Businesses, whether they are online or brick and mortar, are the ones that are most frequently affected by identity theft. Scammers and identity thieves manage to steal over 1 billion dollars a year from small and medium enterprises alone. Since most large businesses have sound fraud protection solutions embedded in their framework, fraudsters can end up targeting smaller enterprises with low-security protocols.
Online identity theft is a relatively new aspect of identity fraud. Since a lot of businesses also prefer to have an online presence, this makes them prone to cyber attacks. The most prevalent of cyber crimes tend to be online identity theft. There are many ways for scammers to commit such frauds including social engineering, phishing and credit/debit card skimming etc.
It is usually best for companies to implement digital verification solutions for their transactions, as manual ones tend to take longer and have a higher margin of error. To implement adequate fraud prevention solutions, it is imperative for a business to utilise certain identity verification checks.
Document verification is the most basic and reliable method for identity verification of customers. A number of documents can be used to verify a customer’s identity and other credentials, including ID cards, driver’s licences, passports, debit/credit cards and utility bills. Various credentials that a business can verify from these documents include name, age, gender, nationality and the validity of the documents (from the expiry date) itself.
Depending on the nature of the business, companies can opt for facial verifications in their checks as well. For example, if a company sells age restrictive merchandise it is best to opt for document verification in tandem with facial recognition. Face verifications are fast and affordable as they do not require any additional hardware installations. The facial recognition software analyses a person’s facial features with the help of 3D sensing techniques and liveness detection to eliminate any spoof attacks.
Address verification is a simple method for businesses to verify their customers and avoid any shipping errors/frauds. A lot of scammers buy merchandise online from stolen credit cards. When the original owner finds out about the transaction, it is too late for the business to do anything about it. This causes not only financial harm to businesses but can also be the reason for a loss of credit to them. Address verifications use a person’s recent utility bills to verify a customer’s address. Address checks can immensely reduce the cost of shipping errors and helps eliminate any chance of frauds.
There are a number of identity checks businesses can employ as a way of fraud prevention. But the three basic checks mentioned herein are an absolute necessity for any company wishing to steer clear of online identity theft. Such digital verification methods are fast, affordable and easy to implement for any given enterprise.
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