Implementing digital identity verification technology is very crucial in this day and age where global data breaches are on the rise. This technology plays a big part in protecting and avoiding fraudulent activity. There are several other aspects that are worth taking into account, including compliance with key regulatory bodies as well as the ability for new customers to fully access digital services. The following are some of the reasons why it is good to run a water-tight identity verification for new customers.
One of the benefits of online identity verification is that it can help stop “friendly fraud” in its tracks. This is when well-intentioned customers file for a chargeback instead of a traditional return from a company that they have made a purchase from. They simply assume that it is just a different way to get their money back without taking into account the effects it might have on the business.
For other, less well-intentioned consumers, chargebacks is a way to something for free. They may continue to file for chargebacks claiming that they never received an item when in fact they did. The good news is that identity verification can help squash the number of friendly fraud cases because it means “cyber shoplifters” can no longer act anonymously.
Another benefit of online identity verification is that it can help prevent fraud and money laundering concerns. Being fined a hefty amount for money-laundering is a serious concern for most companies - particularly those with a modest income. Even the smallest accusation of money-laundering can spell the end of the road for a business, no matter its size. As a result, most companies are leaning more and more towards using risk-based models that incorporate identity verification in order to assess which users might be high risk.
For more information on the benefits of digitalidentity verification, visit our website at https://authid.ai/
