The latest technology has created convenience for companies and clients, and the biometric system has regulated the organizations’ daily activities. The dark side of the innovative system is that the scammers are also utilizing it for their fraudulent activities. The hackers are using these techniques to perform money laundering and data breaches. These increasing cyber crimes have made it essential for companies to comply with the latest rules and regulations imposed by the government. In 2021, in Japan, 21 banks were affected by cybercrime; this ratio is less than the previous year.
What is eIDV?
Electronic identity verification is integrated to measure the authenticity of the user and ensure that the customer is not involved in fraudulent activities. The risk rate of the client is assessed, and this is performed to mitigate the expected future crime rate. Suppose the company wants to safeguard its interests and the client’s personal information. In that case, it is essential to get thorough information from the user and know about the source of income and the activities in which the customer is involved. Continuous monitoring ensures the user does not get involved in any dubious activity. The constant monitoring feature of the solution aids in detecting the politically exposed persons and the individuals involved in money laundering.
What are the Essential Features of the eIDV Service Provider?
The following are the most essential features of electronic identity verification:
- Know Your Customer (KYC)
For the onboarding of the customers, it is essential to perform their KYC; the companies can get the entire data of their clients. The users just have to face the camera, their verification is done, and their full record pops up. The investment agencies, insurance companies, and banks must register only verified clients. Otherwise, they have to face heavy penalties; high-risk users can harm the organization shortly. The brand image deteriorates when the company faces money laundering or data breaches. Other than this, the people associated with the company also face complexities.
- Online Identity Theft
Online identity theft is widespread, and businesses have to bear huge costs due to such crimes. Fake identities do most cyber crimes; the hacker steals the user’s account and then uses it for illegal activities. Many individuals unknowingly give access to their system by clicking the link the hacker sends. The scammer decodes the algorithm of the user account and plunder all the data. Minor and aged people are less experts in the technicalities of the digital system; sometimes, they do not even know that their account is in someone else’s hands. Therefore, organizations must integrate electronic verification to preserve their rights and safeguard their customers’ data from scammers.
Future of the Electronic IDV
The automated solutions have replaced all the traditional ways of verification; these scanners are reliable, and machine learning and advanced tools are implied in them. Banks are at the forefront of onboarding clients through electronic identification; even customers perform all their transactions digitally.
How is Electronic ID Verification Different from the Traditional Ways of Verification?
- Electronic identification involves automated means of verifying the individuals; the clients’ unique characteristics are required for the authentication. This process is very swift; the entire process is done in seconds. These solutions are error-free; they can even manage large amounts of data. The best feature of the eIDV is that no physical presence is required; the entire process is done online.
- The conventional means of authentication were very hectic and time-consuming, as the user had to travel to the office for their verification. The operators perform the registration and sometimes need to focus more on their ambiance. If the employees are adequately not attentive, then there are chances that they can misinterpret data. It means the user’s personal information is not in the safe hands. Sometimes, the internal people of the company expose the data for the sake of money. Competitors also perform such activities to spoil the brand image of the company.
Regulatory authorities are driving ways to mitigate fraudulent activities and preserve the rights of the companies and the clients. When a large organization goes bankrupt, especially the bank, then the economy of the country is also affected. The government has made it crucial for businesses to follow the rules and regulations of anti-money laundering. The clients prefer a company that keeps their information in safe hands and integrates electronic ID verification, and the customer’s trust is built. When the user faces cybercrime, bad word of mouth is promoted; in this way, the organization also loses their potential future clients.