According to a survey, identity theft increased to 20.33% of total reports in 2019, or over 6.5 million. However, with nearly 1.4 million identity theft reports filed in 2020, this figure rose to 20.39%. Synthetic identity theft leads to severe ID fraud. The stolen IDs can be used for money laundering, terrorist funding, human and drug trafficking, and banking fraud. To prevent these frauds, there is a need for a proper identity verification mechanism. This method ensures that a person is who they say they are. For example, if a company hires someone without an appropriate identity check, that person has access to its most sensitive departments, like finance and information. He can leak sensitive information about the company, which can harm the firm’s reputation, integrity, and business. Identity verification is not just essential for traditional businesses. But, it is also important for online platforms like the eCommerce industry, online gaming, and gambling, online banking, etc.
Identity verification and the eCommerce industry
The e-commerce industry is well known for fraudsters, who are increasingly targeting online transactions using stolen or false identities. Account takeovers, payment card fraud, and phishing attacks are examples of these threats. It is not surprising that many customers believe that online shopping is unsafe. According to a report, one-third of customers think that their personal information has been stolen already. And the remaining third think that it could be leaked while doing online shopping. Identity verification enables the detection and prevention of fraud while providing the frictionless experience that customers expect when shopping online or through mobile apps.
Identity Verification in Gaming and Gambling
By addressing gambling issues and verifying players, identity verification services can assist gaming operators in minimizing identity fraud and money laundering risks. For example, when players withdraw cash or add a new bank account, their identities are verified. However, ensuring AML and KYC compliance is not the only measure that online gaming and gambling companies face. They also have to meet the players’ expectations, who want to use and create gaming accounts without experiencing a long and hectic security process. To ensure player loyalty and future growth, gaming operators must maintain a balance between customer experience and profit.
Over the past few Times, the concept of knowing your customer or KYC has gained traction in the financial world. Considering the rapid increase in digital and financial frauds, regulators have made it mandatory for every organization, dealing with money, to comply with KYC regulations. ID verification and customer due diligence are the minimum compliance obligations of reporting entities. identity verification is neccessory for each company.
The Need for Identity Verification in Online Banking
The banking industry is among those businesses that affect a lot by identity fraud. Some customers do nothing for the security of their typical accounts in banks. But, when it comes to online financial handling, single users, businesses, and legal entities all seek security. Financial services include tax declaration, online banking, and e-trade. These e-services are provided in collaboration with governments, municipalities, banks, and other privately-held businesses. Fortunately, the market provides a variety of verified identity solutions. They offer advanced identity authentication methods, electronic signatures, electronic consumer IDs, and so on. Digital identity verification providers offer these solutions for clients to experience a better sense of control, flexibility, and security.
Identity verification in the adult entertainment industry
Access to adult entertainment by minors is one of the big issues today. According to a study, a student in middle school has probably already watched adult content. The average age of viewers ranges from 7 to 13. Almost 10% of children aged 12 thought that they were addicted. The most terrifying finding is that 22% of audiences are under 10 years of online adult content consumption. On the other hand, 36% of consumers are between 10 to 14 years old. So, there is a need for time to protect minors from adult content. Adult sites should implement proper identity authentication checks to ensure a viewer is an adult. The only safeguard that effectively prevents open access to adult content is identity verification. Other measures are not enough to provide the widespread protection that sorely need in a technologically advanced world.
The usage of online platforms has massively increased due to the pandemic. Online banking, shopping, gaming, and gambling are examples of excessive use of online services. With the sudden rise of these services, identity-related fraud has also increased. Another issue that most countries are facing is the access of minors to adult content. As per Shutfi Pro news, money laundering and drug trafficking make up a market of $1 billion in Jamaica. To mitigate and prevent these frauds, there is a need for a proper identity verification mechanism. Moreover, Shufti Pro funding reached $20 million for the growth of verification methods all over the world.