Digital Identity Verification for Fighting Fraud in Fintech World

Digital Identity Verification

The innovations in technology are providing the world with new opportunities for financial institutes. Fintech is being taken to another level by digitizing of many procedures. In this era of digitizing, financial services are improved to providing convenience and improved customer experience can be provided.  Fintech industry has already set the grounds in the digital economy by services like identity verification services to perform KYC in the blink of an eye. Verifying the identity of an individual is mandatory and is very cumbersome if performed manually. Errors and omissions are always expected while checking the documents and IDs of an individual. Digital identity verification services have bought a lot of ease on the table in the fintech world to perform this necessary action. 

Identity authentication is crucial for the fintech industry

Identity authentication is crucial for the fintech industry as fintech companies are grabbing the undivided attention of cybercriminals. Digital platforms are paving new ways of possibilities for perpetrators to implement their advanced fraud strategies to exploit the consumer accounts and information, harming the entire business. According to the global Identity and Fraud Report 2019, 55% of the businesses claim an increase in fraud-related losses – particularly account takeover attacks and account opening through fake identities – that too over the past year. Identity checks are vital in this sector to avoid fraud-related risks. In this ever-changing fraud environment fintech, companies need to position themselves high by employing digital identity verification solutions to put a tight rein on scammers. 

Identity Verification- Right Solution for Fraud Threats:

Fraud-ratio is increasing with every passing day in the fintech world.  Businesses are becoming proactive in investing in technology and security to keep fraudsters at bay. In fintech, the loss from identity theft in the rise and reports say it will continue to grow. Having a digital identity verification clubbe with artificial intelligence can help to lessen risks of frauds like identity theft, account takeover, credit card frauds, etc. The lack of proper KYC checks poses dynamic fraud threats that can impact a business. Without the extensive knowledge of emerging fraud trends and the vulnerabilities that lead to fraud. The organizations can come up with an effective defense mechanism in the form of digital identity verification.

Digital identity verification practices have use for businesses around the globe. And all regions require the businesses to perform due diligence on their customers in one way or the other. Identity verification is not as difficult for the organizations to follow as it may seem. It just an investment of a few dollars that will save you from a big loss. So identity verification solutions must use for fraud prevention for fintech industries. 

Identity Verification Solutions-Building the Consumers Trust :

The best way to build trust among customers is by protecting their data and providing a seamless and enjoyable experience. The traditional methodologies are no longer effective. Instead, there is a need for a multi-layer approach for achieving the security milestone. Implementing a single solution or technology never guarantees a safe. And the fraud-free environment, however, incorporating multiple strategies help the fintech industry to fight digital fraud. And provide a secure marketplace to consumers.

Advanced technology, like artificial intelligence and machine learning. It uses by the authentication and verification service providers fro improved security and customer experience. The biometrics, identity verification, and digital identity verification can now integrate to efficiently verify and authenticate the customers. Customers are always looking for organizations that can ensure their security and provide frictionless services. Implementing real-time verification solutions, with passive authentication capabilities can hinder the presence of fraudsters. And cybercriminals from intervening in the organization and disrupting the operations.