E-commerce industry has really come of age in the past few years by not only attracting the imagination of a common consumer but by also giving rise to all new industries. Mobile payment and online banking services are just a few examples of how the e-commerce industry was able to revolutionize the entire user experience when it comes to the simplest tasks in human history: Shopping. But the scams and issues faced by e-commerce industry originate mostly from either fake payments or wrong addresses used for delivery of ordered items. As most of the e-commerce orders are generated through Mobile phones and smart phones, identity verification in general and ID verification in specific are important to be processed for smooth protection against online frauds.
Below are 4 reasons that will help strengthen the case of Mobile ID Verification and how they can help e-commerce businesses around the globe to generate secure revenue.
Large Scale Data Breaches
We live in an era where online data breaches have become a kind of norm. Now we are no more surprised whenever we hear a news story where a large tech corporation, or any other global business for that matter, announces that their central user database was recently breached. Vital personal information, including financial credentials, are leaked that land on the dark web to be sold to highest bidder.
This demand and supply system of stolen yet authentic user information means e-commerce businesses will always be at risk of registering users who use authentic personal information of genuine users to easily purchase items on e-commerce websites. Only Mobile ID Verification can safeguard e-commerce websites by differentiating between fraudsters and genuine users. Such a system not only collects personal information from incoming users but also requires them to provide satisfactory proof of identity to validate their claimed identity. Usually, a government-issued identity document is accepted by such identity verification solutions and before the credentials are cross-matched with the identity document, the authenticity of the identity document itself is put to test.
Synthetic Identity Fraud
Smarter fraudsters have adopted to tackle common identity verification services as they not only use personal information of original customers but they actually create a new identity by using identity information from multiple users, making it virtually impossible to detect an identity fraud for anti-fraud tools that only use a single facet of an incoming user’s personal information to authenticate their identity.
Most of the identity verification systems offered for mobile ID verification are now built on superior technology such as Livens Detection for facial verification of a potential customer. Template matching in order to validate the personal information of a future customer with the help of an authentic identity document.
Machine learning algorithms are also being used by KYC service providers to not only smartly detect any attempt of identity fraud but also make sure that any further attempt is detected even more quickly when the next fraudster try to use the same method in the future.
Customers favor it
If the recent surveys are to be believed, Mobile ID Verification and all other forms of identity verification help businesses to earn legitimacy and credibility among their potential clientele. It gives a message to the customers that e-commerce takes client satisfaction and ID proofing seriously in order to protect their clients from identity fraud, payment scams and many other forms of online nuisance. Several studies based on consumer opinion have established the fact that availing such opportunities allow for greater scrutiny of the identity thieves and consumers are happily in favor of authenticating their identity, even if it causes slight friction with the user experience. But with automated user verification and KYC service providers using AI, it is guaranteed in the majority of cases that time of verification will remain within few seconds..
So if you are an e-commerce business that wants to cut down on online fraud and payment scams originating from credit card fraud, Mobile ID verification is the most ideal and cost-effective method to prevent such issues. It will not only secure your revenue streams, for which mobile is the major source, while at the same time these online identity verification services enable online shopping industry to earn legitimacy.