Importance of ID Verification for Trust and Safety 2022 

Any business that wants to protect its reputation and secure its internal ecosystem will find trust and safety extremely valuable. However, customers rarely trust a brand that doesn’t keep them safe in their interactions, especially in online businesses.  For most companies, identity verification offers a solution to this problem.

It provides a way for businesses to establish trust without alienating new customers. Online ID verification methods provide the flexibility to design a simple and streamlined customer journey that optimizes conversion while keeping customers’ data secure. Here are a few benefits of conducting online ID verification.  

What is Identity Verification? 

ID verification is the concept of proving that identity is discernible. It entails capturing, analyzing, and authenticating identity documents to ensure the person is who they claim to be when engaging in financial processes.  

An identity authenticate API can help build trust and safety for your brand. A business can request potential customers to input government-issued IDs, like a passport, for verification. It can also leverage the power of artificial intelligence to determine if the customer ID is real or fake. Automation is another way to prove identity by cross-checking customer data with information in the official database in their country of origin. 

Every online business can face fraud risks, identity theft, or impersonation. Digital identity verification solutions help optimizes customer conversations while protecting consumer data. Here is why enterprises need ID verification. 

  1. Maintain and Improve Business Reputation 

In an age where there is much consumer choice, it is easy for people to move from one brand to another if they don’t feel safe or lack trust in a brand. Failing to identify this consumer need for trust can damage a business’s reputation. Hence, companies must verify a customer’s identity to cement the all-important trust. 

Many successful brands have created an inbuilt sense of trust from all sides by using proper ID verification protocols.  

With continual data breaches, consumers want to trust a company that keeps their information safe. If a business runs identity verification checks, it will prove that it is serious about building trust and maintaining safety, improving its reputation. 

  1. Avoid Costly Chargeback 

Businesses can use identity verification to fight against financial crime. Credit card fraud is a typical identity fraud case that can cost businesses millions. This fraud has been prevalent in the rapid adoption of online shopping during the pandemic. Chargeback can be costly for businesses that accept credit card payments. When a customer disputes an amount, banks often charge a chargeback fee that can cost companies 2 to 3 times the transaction amount. 

With ID verification, businesses can stop chargeback by verifying every customer. Using identity verification makes it more challenging for fraudsters to commit these types of fraud. It looks to confirm who customers are by leveraging signals to prove their identity. Verifying and submitting suspicious activity reports can help provide the data needed to fight financial crimes.  

  1. Avoid Costly Fines 

Identity theft and compromise may have long-ranging impacts on businesses and customers. The solution is to find a responsible digital identity verification provider. Companies can avoid fines for non-compliance by implementing identity verification. They can automate internal processes, minimize human error, and reduce operational costs.  

Fines for non-compliance were $10 billion in 2019, with 12 of the top 50 banks fined for non-compliance. The costly fines can also damage a company’s reputation because of media coverage of non-compliance. Non-compliance can cause employee distrust and negatively affect the reputation. With ID verification, an enterprise can help prevent certain criminal activities like money laundering that center on assuming different identities.  

  1. Prevent Fraud and Money Laundering  

Identity verification can help a business deal with fraud and money laundering risks. Consumers who share personal and financial data with companies can become victims of fraudulent activities. The anti-money laundering regulations require businesses to verify user identity. The company should ensure that customers are who they claim to be in creating a digital asset. 

Verification focuses on bringing offline identities online by looking at data that proves an individual’s identity. Digital verification methods such as biometric verification and face recognition help businesses verify a person’s identity online. Reliable verification means reduced risk of fraud or money laundering.  

Improve customer experience 

ID verification can help improve a positive user experience and help boost consumer confidence in business processes. Consumers have high expectations that companies can protect their personal information. If a consumer knows that ID verification is required for high-value transactions, they will see the company is taking steps to reduce the chance of identity theft. As a result, it makes customers more confident that their personal information and assets are secure.  

Digital identity verification can be used when a person and their documents are not physically present, speeding up the ID verification process. Rapid verification makes the process easy and secure for customers. Companies can use identity verification to provide a seamless onboarding experience for customers. 

The ID verification is a crucial step during the customer onboarding process during the person is not a fraudster or attempting a scam. Since identification verification makes it easy for customers to submit their documents for approval, businesses can provide a better user experience.  

Bottom Line 

Identity verification and authentication play a similar role in confirming a user’s identity. With most consumers scared of data breaches, businesses can ease these fears and avoid costly fines by implementing a smooth identity verification process. Several ID verification tools offer a simple, secure, and safe identity verification process. Businesses must vet new users to establish their digital identity matches their real-world identity. Identity verification can help build trust and safety. Customers often have a choice and can quickly shift to a different company if they don’t feel safe. 

Written by Emma will

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