Identity Verification Services In Action to Encounter Various Types of Fraud

Businesses are readily adopting innovative methods to attain a huge user base and expand their legitimate operations to global customers. However, while making this a reality, businesses have to encounter various threats including financial crimes, identity thefts, and services manipulations. This does not end here, criminals are making their way by bypassing the Identity verification processes to carry out their malicious activities. This has increased the need for worldwide businesses to inculcate automated identity verification services.

The new and improved identity authentication is far better than manual verification as they provide a seamless experience to both company and customers. All in all, businesses can not only onboard legit customers but also verify them in real-time. In case an imposter is filling in the form or uploading forged documents, OCR technology will validate them in minimal time. Here, the real-time selfie or video serves as the additional security to identify customers authentically. The blog covers various types of identity thefts and how automated services counter criminal intentions. 

Identity Verification Services – Mapping the Types of Identity Fraud

Criminals of today are getting sophisticated as they take hold advance technologies to carry out various activities including financial, healthcare, social security, and medical fraud. Criminals simply use fake documents to camouflage their identities and in turn reap malicious and illicit benefits from legitimate industries. Prominent types of identity theft are mentioned after on:

Identity Thefts in Financial Crimes

Identity theft is the most effective tool for criminals conducting financial crimes. Through this, they can get their hands on customers’ personal information. The lack of identity theft protection solutions massively fuels criminal intentions. As per the regulatory authorities, this type of identity theft is a criminal offense that will not put the offenders behind bars but also allocate hefty penalties to respective financial institutions. 

The most common type of financial identity theft is when criminals steal credit/debit card details to make transactions, purchases, and withdrawals without the owner’s free will. As per, there were over 271,000 cases reported regarding this type of identity theft. 

Synthetic Identity Theft – A Combination of Original and Forged Data

Synthetic identity theft refers to the combination of original and fabricated information to fake identities. This type of theft is mostly carried out to attain financial benefits like applying for loans. This fraud type is the criminals’ favorite because it helps them bypass the verification system with ease. Synthetic identity fraud is alone responsible for causing billions of loss to businesses. 

Minor Carrying Out Identity Theft

This is another rapidly growing type of identity theft. Digital transformations have made minors’ access to age-oriented products and services quite hassle-free. They simply add in their elders’ credentials and upload their documents to dodge the ID verification processes. Moreover, this type of theft is prevalent in the gaming, gambling, tobacco, and liquor industry. 

Identity Theft in Healthcare 

Medical-based identity fraud is the biggest problem because it can deprive legitimate patients of their rights. Criminals steal patients’ data and use it to avail medical benefits, purchase AO drugs, and apply for insurance-backed treatments. 

How Automated Identity Verification Services Help Businesses Fight the Identity-based Threats?

As previously mentioned, there are various types of identity thefts used by criminals to tick out the traditional verifiers and cause disruption within the legitimate business processes. However, AI-powered ID verification services provide strict verification that leaves fewer loopholes while restricting criminals from accessing legitimate industries. This way, businesses can prevent fraudulent manipulations and ensure a positive customer experience by providing them with advanced security and data privacy. Below are the services offered by the AI and ML-based solutions.

Maps the Face and Cross-matches It 

The automated biometric identity verification system asks the registering customers for their real-time selfies that serve as the additional layer to verification. Imposters that are faking identities and using forged documents are identified through retinal or iris scans where the system maps the face and cross-matches it within the databases. The system uses advanced AI and mathematical algorithm technology that verifies customers in minimal time.

AML Screening Against Global Watchlists 

As per Shufti Pro News, businesses need robust AML screening services to address financial crimes and unforeseen threats. For this, they need to perform Customer Due Diligence and authentic verification before registering them online. Automated solutions help financial firms verify customers against various sanctions and PEPs list and assess risks they may possess in time. 

Liveness Detection

Lastly, identity verification services are proven solutions for liveness detection. During onboarding, the system asks for a real-time selfie or video that detects the liveness of customers while ensuring that they are present in real-time. Hence, as Shufti Pro Funding indicates, automated identity verification helps businesses to register legit customers in minimal time.

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