Thursday, June 24, 2021
HomeUncategorizedID Verification Building A Strong Wall Against Identity Frauds

ID Verification Building A Strong Wall Against Identity Frauds

In the rapidly changing world where a new technology enters the market every day. This can be said to be the evolution of the human race. The planet has seen the progression from manual working to machine operations.

Now each human working has a machine alternate to it. For example, computer typing has replaced handwriting and calculators have overcome manual calculations. Common people have also changed their lifestyles accordingly since technology is not a choice but more of a necessity.  They use mobile phones for findings routes and locations, learning new recipes, and getting answers to their queries.

Social media has become a habit at this time. Users post their daily activity on social media like starting a new job, visiting a destination, or showing personal feelings. From the last decade, social media has overcome other activities like physical sport or friend meetups. 

Digitization and virtualization have given countless advantages, but it’s not that beneficial as it seems. Due to poor regulation and id verification, online platforms attract scammers and fraudsters.

ID Verification: Making Online Platforms Secure and User-friendly

Identity verification is a process in which user-given information is validated. The primary users of this service are financial service providers. They were the main target of identity frauds and financial crimes because they deal with the money directly. The motive behind every crime is financial benefits thus financial institutions appear to be the foremost choice. 

Financial Institutions: A Potential Target of Crimes 

Scammers attack financial payment transactions and bank accounts. By identity theft, they make a fake account of an authentic user using his personal information. Then they proceed with their criminal activities there. They can ask for a payment transfer from the victim’s friends or get their sensitive information (ATM or credit card PIN) through chatting. 

Money Laundering through Fake Accounts 

The account can also be used to launder dirty money which is an offensive financial crime. The money is circulated in the system using fake accounts so that the link with the illegal source can be separated. Multiple accounts are used for money laundering. The business can be fined for not controlling the illegal funds’ transfer from their channels. Global regulators issue heavy fines on banks for non-compliance with AML/CFT laws. US law enforcement agencies penalized banks with $1,557,521,256 USD in 2020. 28 financial institutions were fined totaling an amount of $3,224,875, 355 billion USD.

Identity theft is a cybercrime where a fake profile of a person is created over the internet. This profile has the same name, photo, and other information as the legitimate user. For example, a criminal can create a profile on social media using synthetic information. The details are a mixture of original and fake data. Through this way, he can scam or blackmail other users. Among all complaints the Federal Trade Commission received in 2020, identity has 29% share, as reported by III. The percentage was just 13% in 2017 and in only three years it doubled. The report shows that identity theft is increasing gradually.

Digital ID verification confirms the identity of a user by checking his documents. It is done by a process known as Know Your Customer (KYC). ID documents approved by the government are accepted only in KYC. The user just has to upload the image of the ID. It undergoes document verification where its authenticity (government issuance) is checked and data is extracted. The data is validated by the KYC software. Biometric verification is conducted on live captured selfies and photo IDs in real-time. In the final step, the address is confirmed and age is checked (whether it falls in the specified range). 

Wrapping it Up

The id authentication is a much cost-effective and time-saving solution than other methods of verifying users. The process is AI-powered and robust with zero manual effort, having minimum chances of errors. Businesses should adopt this solution and build strong mitigation against frauds and scams.


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