Identity verification is verifying a person’s identity based on a government-issued ID or passport, utility bill, bank statement, or other documents.
Businesses need this process for a variety of reasons. For example, to prevent fraud and identity theft when signing up for services like credit cards and loans.
Businesses need to have robust identity verification processes because it ensures that only authorized users access company data and resources. As a result, it adds extra security for your business and your customers.
Here are some examples of identity verification:
- Checking a customer’s ID when they pay with a credit card to prevent fraud
- Using two-factor authentication when logging into your bank account from a new device
This article will explore some of the top reasons why your business needs identity verification services (IVS).
Why Partner With An Identity Verification Company?
Partnering with a company that provides identity verification services can help you avoid revenue loss, bad reputation, and lawsuits.
They can also help you to comply with regulations and identify fraud. But, most importantly, they can help you keep your customers safe.
An identity verification company, like Au10tix, can assess risk by using tools like document or selfie authentication and facial biometrics/facial recognition technology to confirm if a person is someone they say they are.
For example, suppose you deal in online gambling or oversee other remote payment transactions for large sums of money, especially ones that one can use for money laundering.
In that case, you need an identity verification service to avoid running into trouble down the road.
It Helps In Identifying Fraud
The second value proposition of identity verification for your business is that it helps to identify fraud.
For obtaining the best results, identity verification services use a lot of different data sources and screening tools.
They can pull from many different data types, like public records, credit reports, and other databases, to verify a person’s identity.
When an experienced service provider performs these steps, you may avoid giving sensitive information, like banking details, to criminals without knowing it.
In addition to helping you catch fraudsters before they damage your business reputation or finances, a third-party identity verification service can help you get better at spotting suspicious activity on your own.
A good vendor will also be able to teach you more about what happens behind the scenes during their services so that you’re better able to make decisions in the future.
Here’s an example: if your business sells high-end items on eBay, protecting yourself from fraudulent activities is essential.
By verifying the identities of all potential customers before selling them anything expensive or sensitive (like financial or healthcare information), you’ll significantly reduce the probability of getting scammed by someone who’s not who they say they are.
It Helps You To Comply With Regulations
The banking system introduced the KYC (know your customer) regulation to protect financial services customers, and it requires financial institutions to identify and verify the identity of their clients.
It isn’t just good practice; failure to meet these regulations could result in fines or legal action.
However, KYC goes beyond just your customers. You need to know your supplier’s suppliers too. In addition, you should know everyone who is interacting with your business.
KYC is an integral part of any successful business model. It may seem like a lot of work on paper.
Still, with the correct identity verification service in place, you can make sure your business is compliant and protected from fraudsters who want to infiltrate your systems and from competitors who want to copy what you’ve built up over the years.
It Helps You To Keep Customers Safe
Keeping your customers safe is one of the most important things you can do as a business owner.
Fraud, identity theft, and cybercrime are just a few threats that could potentially harm your customers’ finances or personal information.
In addition, these crimes could seriously damage their trust and confidence in you, which is why it’s critical to protect them using identity verification services.
Every year, a staggering number of people are affected by fraud and identity theft. In fact, in 2018 alone, cybercrime exposed over 14 million identities in data breaches worldwide! It represents an increase of 33% in 2017 figures.
It affects the individuals involved, for example, by forcing them to change their passwords or switch banks – it also impacts the companies who experienced security breaches.
These days, corporate reputations are taking an even bigger hit from data leaks than they did in the past because people have become more aware that companies need to do better when it comes to protecting customer data.
It Helps In Customizing Offers And Products
You might wonder how identity verification can help you customize offers and products that you sell based on the person’s identity.
The answer is simple. When a customer registers their identity during the checkout process, they essentially provide you with important information about themselves.
Businesses can use this information to understand the needs and interests of their customer base, which can help them create products that are more relevant to what their customers want.
It Ensures Better Business Relationships
Do you know what’s great about building trust? It’s the foundation for solid business relationships.
When customers trust your brand, they’re more likely to engage with you and use your products or services.
That means they’ll be more likely to buy from you, return to purchase from you again, and recommend you to others.
In other words: better business relationships lead to increased revenue because of repeat business and word-of-mouth marketing.
It also means that your customers will be less likely to take their business elsewhere if they have a problem with your product or service, they’ll be more invested in working with you than someone else.
It Saves Money And Increases Profitability
The best part about incorporating identity verification in your business is the cost-saving benefits that come with it.
According to a survey, using identity verification services reduces fraud losses by 75%. In addition, when you have a successful ID verification system in place, fraudsters can’t misuse other people’s identities to buy products from your company.
As an online business owner, you are constantly bombarded with chargeback fees if customers don’t receive their purchased products on time or aren’t satisfied with them when they arrive.
However, with proper ID verification systems, you can significantly reduce chargebacks and improve customer satisfaction.
An identity verification company will also help you create a better marketing strategy for your brand and become more popular among potential consumers.
You can use the data collected from the identity verification process to design targeted marketing campaigns based on user preferences and interests and customize promotions for repeat customers.
It increases profitability and helps build lasting relationships with your loyal customers.
Reasons Why Your Business Needs Identity Verification Services
These are some of the top reasons why your business needs identity verification services.
- An ID verification service helps to identify fraud.
- It also helps you to comply with regulations and keep customers safe.
- Customizing offers and products become more accessible as well.
- Better business relationships also ensure that you have the edge over the competition.