Today, most business transactions are done online. Customers no longer need to meet with business representatives face-to-face to close a deal. However, digitization has also led to the rise of cyber-attacks and identity theft. In 2020, the Federal Trade Commission received 4.8 million cases of identity theft and fraud. This has necessitated businesses to adopt new and robust identity verification tools to combat security breaches. Read on for four top trends in identity verification.
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Mobile-based ID verification
There is a growing population of people who own smartphones today. This has made many business organizations center their interaction on phones. Since mobile phones are easily accessible, they are more vulnerable to cyberattacks, hence the rise of identity theft.
To combat security threats over mobile transactions, businesses are investing in an ID scanner app. These mobile applications allow businesses of any size to verify customer identification information to provide quality services with the best possible security measures. With the increased use of smartphones and the rise of online self-service solutions, mobile-based identity verification is likely to gain more dominance in the market over the years to come.
Biometric technologies
Biometric technology allows you to verify identities through facial recognition, fingerprint, iris scan, and geolocation. Initially, biometric technology was common in authenticating identity cards and passports. However, biometric technology has become more common today and can be used on most smart devices, including mobile phones.
Smartphones have in-built features such as front cameras for facial recognition and fingerprint readers for quick and easy identity authentication. Biometric technology is expected to rise and gain more dominance. Its market value is expected to reach 40 dollars by 2025, according to Statista.
Companies and their consumers are becoming more conscious of data security concerns
With 47% of Americans experiencing identity theft and a loss of $712 billion due to the same in 2020, businesses and their customers are becoming more aware of security issues. Customers have listed identity theft as a top concern when seeking online services. This has led to the creation and implementation of robust verification tools with the latest cutting-edge technology by businesses and the government to protect consumer identities and prevent fraudsters.
Government regulations around identity verifications are becoming more strict
Thanks to the increase in cyber-attacks, identity theft, or fraud, especially over the COVID-19 pandemic, data privacy and security have become a top concern for everyone, including the government. It is estimated that cybercrime will result in a $10.5 trillion loss by 2025. This has necessitated the government to put in place strict policies to avert these losses.
Know Your Customer (KYC) and Anti Money Laundering (AML) are part of most companies’ security protocols. Companies that do not comply with the set government regulatory policies will have difficulty operating in the near future. You can expect more stringent guidelines and regulations towards the end of 2021 and over the following years.
Endnote
As more people become digital-savvy, you are likely to witness more cyberattacks and identity fraud or theft. You should familiarize yourself and adopt the above identity verification trends to protect crucial data on personal, social, or commercial levels.