The increasing number of businesses going online nowadays has opened a new channel for fraudsters. The increase in technology and the rising number of online shoppers put pressure on vendors to embrace a digital platform. The automated system of buying and selling along with its various benefits have some risks as well. Criminals became wiser and came with sophisticated ways of causing harm to vendors and buyers. According to a report, consumers lost $43 billion to identity theft last year. Identity verification services provide businesses a way to reduce the chances of online fraud.
Fraudsters always remain in search of loopholes in the system to attack. The developers need to be very smart while creating an application. The easiest way one can do fraud online is by attacking someone else’s identity or hiding their original identity, a process called identity theft. To combat identity theft, identity verification services are used.
Your Identity Is Your Thing, Do Not Let Any Fool Steal It
Businesses are too vulnerable to online frauds and fraudsters are continually coming with never-ending ideas to commit fraud. No business would want to associate its name with investigations, screaming headlines, and heavy fines. The thinking of it is no less than a nightmare. But as every problem has its solution, similarly there are ways that can fight online fraud. All one has to do is become smarter to come up with innovative ideas. Identity verification solution is the technology helping organizations to onboard legitimate customers.
Onboarding authorized customers is the first step organizations can take to protect themselves from having any unfortunate experience in the future. It can be achieved if enterprises have something at their end to ensure onboarding honest individuals. Technology has blessed companies by suggesting solutions to this problem. With identity verification services, merchants can verify their consumers playing their part to protect themselves.
Fraudsters harm the reputation of businesses and the financial data of their clients and use it for identity fraud. Identity theft is an online fraud that refers to obtaining information of another individual and using it to commit fraud. One of the most prevalent frauds occurring on digital stations is identity theft.
How Fraudsters Steal Personal Data
Consumers are required to be careful in dealing with their personal information. Individuals who commit fraud use smart ways to complete their fraudulent activities. Some ways to commit identity theft are the following:
Personal information of the consumer like their name, address, credit card details, and bank statement can be stolen.
Fraudsters can send emails under the name of an authorized bank or organization and ask the consumers to send their personal and financial information.
Some fraudsters can pretend to be calling from a bank support or service provider and trick the users into sharing personal information like name, address, bank details.
Hackers break into the computer system and hack the data of the customer.
Consumers also behave carelessly at their end when it comes to their credentials. Social media has taken over the thinking capabilities of humans. Users now share every little thing of their life on social apps. At times they do not even notice and share their sensitive information like pictures of credit cards that fraudsters misuse easily.
Ways To Fight Identity Theft
Online frauds can be prevented. The thing is businesses have to be well equipped to protect their privacy. And the customers’ information. Following are some ways merchants use to combat identity theft:
- Identity theft can be controlled by protecting customers’ data. Companies must ensure that they encrypt users’ information before storing or transmitting it. Businesses need to carefully provide data to employees who they know can take care of it.
- Establish effective business policies that incorporate strategies. About how the information of the users is going to be saved in the firm’s record. Remove sensitive information of the customers that is not useful anymore.
- Design rules for customers when they come to perform any activity. For instance, if a customer pays from a credit card, ask for a code present at the back of the credit card. Verify the address of the customer to confirm that the card really belongs to the individual claiming it.
Compliance Rules For Businesses
Considering the rise in online frauds, compliance professionals have designed rules for business entities to abide by. These regulations help businesses to prevent their source of income from facing any unfortunate event. Vendors when they fail to adhere to compliance, they have to go through reputational damages, customer loss, and fall under legal activities of paying hefty fines. Regulatory authorities working in favor of businesses. And protecting customers are destined to eradicate digital frauds.
Identity verification services are the ways of fighting against identity theft. Businesses can corporate regulatory KYC/AML compliance as a way of protecting themselves from facing illegal activities performed by fraudsters.