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Importance of Identity Verification in Online Platforms

Importance of Identity Verification in Online Platforms

As businesses have digitized and customer interactions take place online, client service has become more complex than ever.  With the advancement in technology, customers demand greater security services that do not compromise their experience. This makes it really challenging for the online platforms to meet the ever-changing client expectations. This is exactly where robust identity verification solutions came as a hope.

Identity verification is done to check that the customer is actually the one who they claim to be. By validating and storing the user’s identity details, the firms can mitigate any possible fraudulent activities. The lack of advanced identity verification services causes the firm financial loss and also puts its greater reputation at risk. 

Here are the reasons why online platforms need a robust identity verification service.

1- Don’t Get Left Behind

There are different identity verification methods being used to validate the identity of individuals. The most common methods were knowledge-based verification and two-factor authentication. But as technology advances and fraud have come up with their revised mythologies, these verification solutions become outdated. The reason is that the knowledge-based verification might be simple and easy for the users to give answers to but such information can easily be lifted from social media platforms by cybercriminals to carry out their nefarious activities. On the other hand, the two-factor authentication process has no more significance as fraudsters have come up with sophisticated ways to bypass the verification solution. 

As per Shufti Pro news, such outdated solutions make the customers frustrated and turn them towards services that are technologically advanced and provide them with a great experience. Thus, all the online platforms need to deploy a biometrics identity verification system otherwise they would be left behind in the race. 

2- Build Customer Loyalty

The clients have started using services digitally and it does not mean that they compromise on the services. In fact, clients’ demands have increased with the wave of digitization. It has become essential for businesses to fulfill the ever changing client demands or suffer reputational and financial loss. All firms have to ensure that the onboarded clients are genuine, their data is kept safe and secure, and that they have been provided with a seamless experience. This all could be achieved by deploying strong identity verification services. Another thing to build customer loyalty is connecting with them emotionally which would give them some kind of satisfaction that they are being valued and protected by the company. This would build a positive brand image in the competitive market. 

3- Cost Efficiencies

Digitizing the customer onboarding procedure cuts down the company’s operational costs. It’s a thing of the past when investing in robust identity authentication solutions was considered a financial burden. Now, these solutions not only provide enhanced security services but also removes the need for manpower to verify individuals. Besides this, they eliminate any human errors and provide accurate and quick verification results so that firms could continue their operations with greater satisfaction. 

4- Regualtion Compliance

Considering the rise in fraudulent activities, regulatory bodies have made KYC and AML compliance mandatory for the industries. There are more than 90 countries in which identity verifications have been made mandatory by the regulatory authorities to authenticate clients and keep their records in the database. Such regulations were introduced to deter identity theft, cyberattacks, data breaches, and other criminal conduct. Thus, deploying robust ID verification solutions makes the firm stay compliant with the regulations and prevents them from penalties and paying hefty fines. 

5- Prevent Fraudulent Activities

One of the main reasons why any firm needs identity verification services is to protect itself and its clients from data breaches and synthetic identity fraud. It is something worth noticing that conventional verification solutions have become obsolete now. As the fraudsters have become smarter to bypass the verification solutions, it is essential for the online platforms to deploy advanced identity theft protection services to keep criminals at bay. Having advanced security measures not only builds a company’s reputation but also helps it generate greater revenue. 

Final Thoughts

The increasing number of identity theft and other criminal activities have made Identity verification a need of the digital era. Many firms have just started to accept investments such as Shufti Pro funding recently done by the Updata partners. Besides providing enhanced security, the solutions make the firm stay compliant with the KYC and AML regulations and prevent them from paying heavy fines. Furthermore, robust identity verification solutions provide the user with greater experience, build a company’s credibility, help it generate more profits, and reach greater heights. 

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