With an increasing number of businesses operating online, the threat posed by identity theft continues to loom. Online fraudsters are managing to adopt new ways to breach cybersecurity measures and expose the vulnerabilities of companies, with cybercrime set to cost the world $US 10.5 trillion annually by 2025. As a result, online security has become a top priority for companies and consumers alike.
As identity threats are becoming more frequent and sophisticated, traditional methods of verification are becoming outdated, calling for greater security measures and more reliable ways of verifying who is on the other end of a transaction. This is particularly important when it comes to Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
This article will look into some of the ways technology is being used to counter fraudulent activity when it comes to identity verification.
Biometrics
Once seen as science-fiction, biometric technology has now become an everyday occurrence with features such as fingerprint and facial recognition present in smartphone technology and home security systems.
As the industry continues to grow the global biometric system market is projected to reach $65.3 billion by 2024 proving that biometrics will play a major role in identity verification. Biometrics are already revolutionizing the way identity is verified with applications that include:
- Travel: The airline industry is making increasing use of facial recognition technology to verify travelers allowing them to bypass checkpoints and lengthy security protocols, making the travel experience more seamless.
- Banking: Biometrics are becoming an important means of authenticating the identity of users to protect client data and funds.
- High-security areas: By combining PINS and passwords with biometric data, high-security areas such as bank vaults, labs, and secret service buildings can ensure the safekeeping of their information and assets.
ID Scanning
Another means of verifying identity is through the use of ID scanning. With many banks and online businesses electing to use ID scanning to authenticate customer identities, this method offers a quick and reliable solution for many businesses.
ID scanning software is commonly used to validate identity by capturing and scanning passport information from a webcam or smartphone. This time-saving technology replaces the need for manual verification of documents, saving businesses time and money as well as storage for maintaining paper records.
Businesses will also benefit from the accuracy of data that they hold as ID scanning removes the element of human error from inaccurate data entries. According to IBM the yearly cost of bad data, in the US, alone is $3.1 trillion.
ID scanning can be easily used in several industries. For example, contactless check-in at airports and hotels, making business travel more convenient, as well as in casinos and bars where age verification is required.
The versatile application of ID scanning, allowing for fast and reliable verification of identity, makes it a suitable solution for many businesses. As the tactics of online fraudsters and cybercriminals become smarter technology must continue to evolve, to meet and outpace those challenges making identity verification processes as watertight as possible.
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