Reshaping the Economy with Electronic Identity Verification

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Today, immense remote transactions and sign-ups that represent business development have become vital. The businesses providing online services to the customers are taking into account the darker side that can adversely affect them. These sides depict the fraudulent actors wandering over the internet and could be harmful. Identity verification serves the purpose of eliminating such entities from the network while curbing the risks of money laundering, terrorist financing, identity theft, and data breaches.

Business growth refers to the norms and standards it is adopting within an organization. Verification of onboarding customers is one of them. It is crucially important to know the entities that are becoming part of your system. Filtering honest traffic from a dishonest one is the ultimate goal of every business. It can be achieved by integrating the online system with API that performs real-time identity verification. These APIs undergo address verification, biometric verification, and document verification to run an identity test on each onboarding customer. These practices are generally referred to as Know Your Customer (KYC) methods.

KYC Regulations Compliance

Online business is more prone to cyberattacks which makes it a haunting fact and demands stringent security measures that contribute to eliminating fraud risks. Effective ID verification solutions help in delivering a seamless customer experience while mitigating the options for cybercriminals. Online users are accustomed to robust internet services and access. It is challenging for online retailers and businesses to introduce soundness in the system without compromising user online experience.

Real-time identity verification has covered online businesses by giving them robust identity verification services. Now, in mere seconds, a user can verify identity. Identity verification services are available that authenticate the provided details of online customers. These details lie under the premises of KYC. Local regulators have made it mandatory to perform the KYC process with every identity on board. In these checks, money laundering and criminal records are monitored against the identity. It makes sure that the customer has not been part of any criminal activity currently or in the past. The businesses failed to comply with these regulations are subject to harsh regulatory penalties and reputational loss.

Types of  Identity Verification

In reshaping the economy, electronic identity verification plays an obvious role. As the instances of cyberattacks and online fraud are lessening with identity verification solutions, hence contributing to the betterment of the overall economy. The following are the types of identity verification API that serves the purpose of performing due diligence processes and deter the risks of fraud.

Electronic Identity Verification (eIDV):

The identity of a user is verified through digital means. Eliminating physical document monitoring with digital verifications has reduced the verification time and effort. Customer screening is done against sanction lists (electronic databases, PEPs records, money laundering records, etc. To meet the requirements of Customer Due Diligence (CDD) rules, eIDV processes are performed.

Document & Address Verification:

Identity verification can be done by authenticating the information provided on the documents. The document is first verified against certain parameters. The document template is analysed, information is extracted using OCR technology, and this data is matched with the one provided by the user in the form. Spoofing tests are run on the document to check if some information is forged or not. Similarly, address verification API is used to verify the address and geolocation. The address is divided into segments, its format and spellings are checks by Address verification software and hence accept if it is correct.

Knowledge-Based Authentication (KBA):

KBA approach is used for identity verification which ensures that identity is actually what it claims to be. Traditional methods are reformed to automated ones. Dynamic KBA practice helps to authenticate user information by asking frequent questions based on private information. If the user answers accurate, the assessment test is passed and the user can proceed with further operations.

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