Online Identity Verification Saving E-Commerce from Fraudsters
According to a study, 2.14 billion people are expected to buy products or services online. But frauds are clamping up at an exponential rate in the E-commerce sector. The only way businesses can limit fraudulent activities is by deploying identity verification solutions that authenticate the identities and cross-reference before proceeding to the transaction. Card Not Present(CNP) frauds are especially increasing in this sector. Credit card frauds and appeals to refund costs E-commerce stores double the price of placed order, such loss to a business can be stopped by using digital ID verification technology. A recent study reveals that the growth of CNP fraud is expected to increase by up to 14% by 2023.
To combat the growing trend of fraudulent activities in this sector, online retailers are adopting reactive measures to put a halt on the malicious activities that cost the business a lot.
Online identity verification at the time of registration of an account can help expose fraudsters and scammers. Authentication of legitimate customers in an effortless and effective manner should be the goal of an e-commerce platform. The technical solutions that provide them with innovative solutions to identify and verify each customer while providing a better customer experience. It will also provide ease and soundness in the system. Identity verification can be completed in mere seconds customers can proceed to transactions.
Digital ID verification: A Must
Businesses can save their online systems from a number of frauds. This fraud includes payment scams, identity theft, and credit card fraud. Where there is money, there will be more chances of fraudsters’ involvement. Where on one side, systems are strengthening themselves with technological advancements, fraudsters are using innovative hacks to exploit the vulnerabilities in the systems and act according to their malicious desires. A number of data breaches occur on a daily basis. A massive range of dynamic frauds demands security measures to ensure confidentiality and integrity perspectives into the system.
Identity verification is a solution to these emerging frauds. Making it hard for cybercriminals to bypass security measures and exploiting the loopholes. Most of the threats are as a result of uncontrolled access and unauthorized services. In the banking and financial institutions which hold customer personal data need to ensure Know Your Customer (KYC) compliance using the customer identity verification solution. They can integrate their systems with id verification API that verifies each identity before allowing it to continue the transactions.
ID Verification: Saving Business from Falling
The online market has a high rate of falling in the pit of fraudsters as you do not get meet the person who is buying anything from the platform. Age verification is necessary for such platforms as fake ID cards are used by the underage people to get age-restricted goods like liquor or e-cigarettes. The business then has to pay penalties for unknowingly committing a non-compliant act. Online identity verification is integrated into the systems to save the business from paying hefty fines due to such criminals act.
B2B relations with businesses across the globe are being initiated. Such opportunities are generating high revenue but also exposing the business to the fake merchant frauds. The fake merchants can cause revenue loss, credibility loss and loss of company vales in the market. So it is very important to have identity verification as KYC and KYB services to verify the identities of business. Hence the businesses must perform in-depth identity proofing of their merchants and stakeholders. E-Commerce is growing tremendously so is the need for identity verification in this business to kill the fraudulent activities by cybercriminals.