Identity verification is an essential security measure for combating fraud, ensuring business security for anti-money laundering and Know Your Customer (KYC). Identity verification is the process of authenticating a person’s claim of who they claim to be by comparing their claims to the data that can prove it. It can be manual or automated, making the processes differ based on the method used. Some documents that can prove identity are birth certificates, driver’s licenses, social security cards, and more. Since IDs can be stolen or forged, companies have to take extra measures to affirm that persons are who they claim to be.
Once a business expands into the digital space, many transactions happen virtually, making it essential to determine the authenticity of online customers. Through electronic identity verification, you can affirm their identity. It also allows businesses to comply with stringent government laws and helps with employee onboarding. Outdated and inconvenient identity verification processes can negatively impact a company’s bottom line and efficiency. Here are some of the trends in identity verification.
1. Increased mobile demand
The world has gone mobile, meaning more people use mobile devices to access the internet. Thanks to the COVID-19 pandemic, more people have embraced mobile devices as a means for conducting business, shopping, recruiting, remote onboarding, and more. The effects of this on electronic identity verification have become more profound.
Since consumers have shifted to using mobile devices, fraudulent activities have also risen. Companies need to constantly consider mobile malware threats that intercept messages and capture personal data. This means they should find ID scan solutions to protect customer data while enhancing the customer experience.
2. Comprehensive integrations
An organization’s tools and systems need to fully integrate with existing key technologies because significant changes to the core processors may be too costly, and the potential consequences may be too damaging should the new itinerary fail. This is why the recent identity verification technologies are developed with features that allow them to integrate with existing processors. Consequently, potential compatibility issues can be identified during testing and rectified at the product development prototype phase, ensuring the ID verification technology functions as it should upon installation.
3. Rise of biometric technology
Biometric technology use in the ID verification world is increasing and gaining more power with each new invention. Based on the application, biometric technology enables identity verification through social media accounts, geolocation, iris scan, fingerprints, facial recognition, or other biometrics unique to each individual.
4. Remote work security emphasis
Remote work has become more prevalent, especially during the pandemic, increasing workplace security. The issue becomes more complicated when several employees have to access sensitive data from different locations because this compromises the security framework. While many employees now prefer working remotely, companies must ensure long-term security solutions are in place.
A good brand image requires comprehensive security and ID verification to protect employee and company data. Failure to ensure robust ID verification systems may lead to stakeholders losing confidence in your business. Since most remote workspaces don’t have solid identity verification systems, outsourcing security issues would be ideal.
5. Increased use of Machine Learning (ML) and Artificial Intelligence (AI)
AI and ML play vital roles in the automation of digital systems. Artificial Intelligence records and verifies data in the identity verification domain, while Machine Learning makes the process faster and more accurate. Artificial Intelligence can potentially fight cybercrime without human input. Since AI and ML fields are still developing, data and network security will become more efficient once the underlying challenges are addressed.
Machine Learning systems can accurately identify potential identity breaches and suspicious activities. As ML and AI technologies continue to develop, their integration into the identity verification systems will become more efficient. It may also result in increased demand for software or a workforce competent enough to work with the systems.
6. More strict identity verification regulations
Government authorities are now taking identity verification regulations more seriously because of incidents of hacking of official portals and websites and multiple scams. Fraud and cyberattacks dramatically increased during the pandemic as most people relied on their digital devices.
Strict regulatory measures will be put in place to cover security loopholes to avoid the forecasted cyberattack costs. Know Your Customer (KYC) is prone to identity scams; that’s why companies should ensure stricter regulations to prevent KYC policy breaches. Failure to install robust ID verification systems may result in high fines for non-compliance.
7. Consumer concerns driving demand for change
Identity theft and bank fraud are rated as top concerns by 44% of consumers. ID theft also costs banks billions of dollars and invaluable goodwill, making its prevention a top concern for consumers and institutions. This has led to robust identity verification tools that meet the users’ needs. While identity security threats are on the rise, new and advanced technologies are increasing, and their implementation will lead to secure online and in-person interactions.
Identity verification is essential for businesses looking to comply with government regulations and curb fraud. Since technology is constantly evolving, be on the lookout for ID verification trends and implement them to ensure data security.