Preventing Fraud With Identity Checks

Identity fraud occurs when someone uses another person’s personal information without authorisation. Countless databases contain treasure troves of personally identifiable information (PII), and a data breach can compromise these databases and make them vulnerable to fraudsters. Fake IDs, for example, can be bought for very little on the dark web. And they can create synthetic identities using PII from real IDs. To prevent this kind of fraud, companies should use identity checks to protect customer information. For AML Identity Verification, go to w2globaldata

Image credit

For a business to protect its accounts receivables and payables from fraudsters, identity checks should be used to identify the person who made the payment. Fraudsters can use this information to open new accounts. That’s why it’s essential to use secure account procedures.

A third-party tool can be used to verify an individual’s identity, but it can slow the customer experience. In addition to being time-consuming, this method of verification can be expensive. Further, the user-interface is also more difficult to measure. In the digital age, a seamless user experience is more valuable than ever. A solution to this problem is identity verification software, which filters out fraudsters before the ‘know your customer stage’. By performing these checks pre-KYC, the tool does not impose any friction on the customer.

Image credit

By performing identity checks, merchants can reduce the likelihood of chargebacks and transaction fraud. If a user’s login behaviour is suspicious, the software can verify that person’s identity, and flag those users who aren’t. Even if a user’s identity information is valid, a shady user can use it to commit fraud. Ultimately, the digitalisation of identity verification solutions is essential for business.