The Challenges and Opportunities for Businesses with Biometric Authentication
Do you really know your customer? As the world becomes increasingly digital, cybercrime is on the rise, and identity fraud protection concerns are growing amongst both consumers and businesses alike. Increased government and industry regulations – including Know Your Customer (KYC) and Anti-Money Laundering (AML) rules – place the onus firmly on businesses to carry out identity verification and ensure that all customers are neither identity thieves nor fraudsters.
Positively and consistently verifying the identity of all customers is absolutely essential for modern businesses in order to make certain that corrupt or illegal activity isn’t slipping under the radar. In an online environment, it can be extremely difficult to determine if someone’s digital identity matches their real-world identity. Any fraudster, money launderer, or other criminally-minded individual could be posing as a genuine customer when opening an account – and that puts organisations at great risk.
What’s more, today’s customers themselves also have high expectations. First, they want to be certain that their sensitive personal information is secure from identity theft; second, they expect sign-up and sign-in processes to be as quick and hassle-free as possible. Electronic identity verification tools allow organisations to achieve both, and much more besides, including improved accuracy of verification, greater efficiency, and reduced operational costs.
Know Your Customer
Identity verification tools are one of the easiest and most effective methods for organisations to verify the identity of their customers and clients.
Put simply, identity verification is the process of using public and private databases to quickly confirm whether an individual is truly who they claim to be. In real-time, ID verification matches the data provided by an individual – such as name, date of birth, or address – against various databases to determine if there is a match.
Today, however, there is increasing emphasis on the use of biometric verification as a means to identify individual customers. Biometric verification is an identity authentication process used to confirm a claimed identity through uniquely identifiable biological traits, such as fingerprints and facial features.
Who Would Benefit from ID Verification?
According to the Credit Industry Fraud Avoidance Scheme (CIFAS) and its most recent (2018) annual Fraudscape report, there were almost 175,000 cases of identity fraud recorded by the 300 organisations who contributed data to the study in 2017. The report notes that while this was only a 1% increase compared with the previous year, it marks a 125% increase compared with figures from a decade ago. Worryingly, though fraudulent applications of plastic cards and bank accounts – usually the products most frequently targeted by fraudsters – remain high, the biggest increases have actually been seen in telecoms (47%), online retail (49%) and insurance (1,600%).
(Image source: cifas.org.uk)
Identity theft is indeed a big problem plaguing banking, insurance, retail, healthcare and government organisations, all of which – and all of whose customers – stand to benefit hugely by implementing an advanced, biometrics-based identity verification solution in a number of key areas.
First, biometric verification systems provide more accurate identification than traditional methods, lowering your risk of costly and reputation-ruining breaches – traditional authentication solutions only link a given device with the corresponding customer account, rather than authenticating the actual user themselves. They are also more efficient – designed with ease-of-use in mind, biometric authentication provides accurate results with minimal effort. In addition, biometric verification systems offer a high level of customer convenience – it’s considerably easier for a customer to have his/her identity verified biometrically than having to remember passwords, secret answers or PIN numbers. What’s more, deploying a biometrics verification solution will give you a sustainable competitive advantage over disruptive new players in the market, who will likely lack the resources to be able to take advantage of this hyper-secure and convenient technology.
Who Is Using Biometrics for Authentication?
Electronic and biometric ID verification solutions are efficient, can save businesses time and money, and help increase customer satisfaction (and thereby revenue) by capturing the customer at the point of interest, as opposed to driving them to a competitor with a more streamlined process. They are secure, and ensure a better customer experience, due to the fast and seamless identification process.
Many different organisations operating in a variety of industries are today reaping the benefits of using biometrics for authentication. Banks like BBVA, for example, have adopted a robust identity verification system to reduce the risk of identity theft. Compensation Funds are using the technology to verify the identity of customers, evaluate the relevance of social credit and formalise legal commitments. In healthcare, the Workers Medical Centre uses biometric authentication solutions for the provision of medical exams. In the retail sector, ID verification technology is used to support a wide range of processes, including formalising customer contracts, on-boarding, the evaluation of loans and the delivery of credit cards. Universities are using identity verification services for enrolment and consent processes for thousands of students every single year. Border controls are using biometric visas and ‘chipped’ ePassport gates at airports. And government agencies are utilising biometrics in everything from immigration services to national security.
Is ID Verification Right for Your Organisation?
TOC ID Verification is a global leader in identity verification, enabling organisations around the world to win the battle against identity theft, comply with industry regulations, and streamline the authentication process for customers. TOC ID Verification has solved the problem and challenges of identity verification faced by industry and government by developing the world’s most advanced ID Verification solution. Our biometric authentication solutions are second to none and enjoy an industry-leading accuracy rate above 99%; it is the most accurate biometric authentication available today and can be accessed quickly and easily via our cloud API.
With over 8 years of experience and more than 5 million identity verification transactions per month, improve the accuracy of your verifications, enjoy greater efficiency, reduce your operational costs and delight your customers with TOC ID Verification. Get in touch today.