Imitating the identity of someone else and performing modifications on their personal information is a prevailing problem in the global market nowadays. It can harm and disturb the customer onboarding process for businesses. Using stolen credit cards, forging the documents, and misusing the information are the most common frauds which are giving new platforms to fraudsters to act in daily life. One of the real-time solutions to these identity thefts is to adopt satisfactory measures of identity verification into their systems so that every authentic client can be detected before an imposter could execute any transactional activities. It provides a risk cover of protecting the clients in a more secure environment.
Automated Identity Verification Paving New Ways for Firms
Identity authentication has become a necessity for organizations for keeping fraudsters away. Verifying the customers and digitally onboarding them while checking them against AML regulations can prove to be essential for firms. Complex ID verification processes can impact the customer’s decision as they might get frustrated leading them to abandon the whole procedure of identification. Automated identity verification services have put this problem to a halt as real clients can be detected efficiently and cost-effectively. This will not only help organizations to onboard customers quickly and more securely but will also enhance their brand image in the minds of consumers as they value their time. As apparent from Shufti Pro News, banks are using the process of enhanced due diligence to mitigate the risks of synthetic identity frauds.
Sabotaging the Companies through Identity Thefts
Multiple tactics can be used to fool around customers into providing their personal details and then misusing them against them. Even though every company has a unique business model yet fraudsters devise new techniques to invade customers’ profiles while using a stolen identity. Many users can be tricked by spamming their emails sent from a fake organization, asking them to provide details for extra incentive to bring them onboard. Once the scammer gets access to the user’s detail, it can be used in many dubious ways such as selling confidential information for high rates in the digital black market. Smarter criminals can even hack the information from the company’s database which can cause them huge losses.
Major Industries Targeted By Imposters
No sector is safe from the attack of identity theft as they have found advanced loopholes to inflict a company in a negative shade. Whether is a financial institution, non-profit organization or any company, all of them are the targets of identity thieves. Some of these major industries are mentioned:
Creating problems during money exchanges or carrying out illegal transactional activities are the deceptions of fraudsters in financial institutions. Opening a bank account using a stolen identity, money laundering, illegal account takeover, credit card fraud and much more are the prime acts of the deceit of criminals in banks. Many insurance companies, mortgage houses, stock exchanges etc. are investing money in executing an adequate identity verification service as evident from the Shufti Pro Funding as well.
Identity theft protection has also become a need for the healthcare sector. Fraudsters usually target patients and steal their identities in order to use the free medical services and buy unauthorized drugs. This can affect the credibility of the hospital as well as the pharmacist. A verified identity can save themselves from such misfortunes through the biometric identity verification process as customers’ data will be secured by using the 3D map of facial features of them which is unique to each client. Deploying the biometrics can be challenging for the imposters.
Another sector that can be affected due to identity theft is the travelling industry. Usually, imposters imitate themselves as fake guests to get free services and travel free of cost. Many criminals use hotels as their hideouts as well. The travel industry can get exploited by money laundering, human trafficking and by the prevalence of trading of drugs etc.
Wrapping it Up
Identity authentication can save businesses from multiple crimes of identity theft. Identity theft can provide financial and reputational damage to an organization by causing them a loss of millions of dollars and losing potential clients. Falsifying documents and performing illicit activities in various industries by identity thieves can be resolved by implementing identity verification services. Digital onboarding of the customers can help companies to mitigate the risks of fraud and provide an extra layer of security for authentic clients. It protects the business’s credibility and detects any suspicious activity by keeping fraudsters at bay in real-time.