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Tuesday, April 16, 2024

How Imperative Is Online ID Verification For Digital Merchants?

The e-commerce industry has boomed over recent years. Covid-19 has also pushed merchants to have an online space for themselves. Almost every sector adopted ways to survive the pandemic. For example, the education sector started conducting classes online. Many people have started adopting digital services when it comes to shopping and digital banking. What else one could ask for when they can do their everyday little tasks while sitting at their homes, but there is a disadvantage of it as well. Imposters have become efficient in committing digital scams. Online ID verification is important to prevent such fraudulent activities.

Pandemic has forced companies into a condition where they had to shut down their firms on a temporary basis. Businesses that somehow managed to keep operating their work took full benefit of the ones that were not doing well at that time. Perpetrators took full benefit of those uncertain times for organizations and their rapid inclination towards digitization.

What is ACH? The ACH network allows businesses to send and receive payments through a central hub. This hub can be operated by any bank or financial institution, so it can be used in any country.

Online ID verification – Putting a Stop to Digital Scams

While vendors found it difficult to cope up with the shift towards digitization, it was imposters who quickly adapted to those alterations, upgrading their skills to attack digital transactions. Moreover, fraudsters underwent ransomware, phishing attacks, and identity theft to attack users and vendors. The only key factor that protected the e-commerce companies at that time was the Identity Verification service.

Considering the increasing scams in the industry, e-commerce had to upscale its efforts to make sure that customers are legitimate and the transactions made by them are legal. It made them follow AML (anti-money laundering)  and KYC (know your customer) laws. Businesses found it mandatory to process online ID verification to authenticate users, safeguarding existing customers from cybercrimes like account takeovers, identity theft, and avoiding illegal transactions.

It is unquestionable for merchants to regard the customer experience too. Users nowadays are accustomed to deploying online platforms and they expect to avail themselves services at a faster speed. If an ID card verification solution would take forever to complete, it will negatively affect the user experience. Thus, companies are liable to have a balance between providing frictionless user exposure and online ID verification solutions.

Online ID Verification – What is it all about?

Simply put, digital identity verification refers to the process of making sure that a person is who they say they are. These verifications are important in avoiding perpetrators from committing such scams. Online ID verification in the e-commerce field identifies information of customers like phone numbers and postal addresses to verify consumers. The data can be collected from a series of sources like banks, financial institutions, and others.

Devices’ information and IP address are also required to verify that the customer exists in reality. For example, whenever a customer’s account is accessed, companies would undergo an online ID verification measure. For the ID card verification solution, customers are liable to provide proof of their identity. This might be a code sent to customers from companies through mobile numbers and email addresses. Users’ online ID verification can be performed at many events. Few examples, at the time of user enrollment, account opening, and at the time of making a purchase of an age-exclusive product such as tobacco.

Verify ID – Importance for Digital Merchants

The e-commerce business is the most targeted one by imposters to perform illegitimate activities. They use counterfeit or stolen identities to perform online transactions. These consist of payment card frauds, phishing attacks, where criminals imitate vendors’ messages to access the retailer accounts.

These situations have made customers avoid deploying digital online services. They hesitate that their data will be stolen. Online ID verification plays a key part in vendors’ repositories to counter identity fraud. They identify and avoid fraud by employing solutions like online ID verification services to provide a frictionless user experience while shopping online.

Counter Threats Of Digital Identity Fraud

Imposters are becoming efficient in their tricks to leave the vendors unprecedented. Many e-commerce websites are in trouble because of the escalating risks of synthetic identity fraud. It combines genuine and false user information to curate a new identity. These risks can be reduced by employing online identity validation of customers.

To confirm the safety of user data and online transactions, e-commerce vendors should advance their approach. Enhanced applications of automated machine learning (ML) may assist companies that trade through digital means to counter scams at a large scale while providing the optimal user experience.

In a Nutshell

It is a fact that each company is experiencing cybercrimes at this age. The e-commerce business especially is under attack these days. Online ID verification is the ultimate method to provide security to these platforms. E-commerce is trying to strike the right balance between user exposure and securing customer credentials.

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