Identity theft is rising as the most threatening concern industries are facing. Criminals commit data breaches by using fake identities to steal legit customers’ information. This way they bring reputational damage to industries. Criminals are using sophisticated methods to commit various types of fraud that help reap benefits from every type of industry. These attempts are hard to identify for manual verifiers as they involve numerous errors.
Industries need to incorporate efficient identity verification processes to draw a line between legit customers and imposters. The AI-powered IDV solutions provide assistance to digital by using OCR, ML, and various other advanced tools. This way, digital identity authentication solutions enhance the industries’ operations. The blog highlights different types of fraud and ways online services counter them.
Digital IDV Solutions Addresses Various Criminal Threats
Industries while going digital are facing a rise in identity fraud cases. Criminals use digital tools to create fake documents and onboard platforms. For instance, spoofing attacks, deep fakes, voice changers, and 2D/3D masks. According to the stats from 2021, identity theft cost consumers over $43 billion. As per Shufti Pro News, identity fraud helps criminals to onboard legit platforms and reap financial, medical, and several other benefits.
Businesses need to incorporate effective identity authentication mechanisms to identify imposters prior to onboarding. The AI-enabled solutions provide accuracy and authenticity at less operational costs. This helps industries save both resources and their reputation from exploitation. Digital identity theft protection solution provides liveness detection that ensures the user is present in the real world. Below are the types of identity thefts that criminals commit and ID verification solutions combat.
Identity Fraud in Finance Sector
Banks and other financial firms are currently experiencing an increase in identity-related threats. Criminals steal Personally Identifiable Information (PII) of legit customs to open an account or apply for financial benefits. They also use credit/debit card details to make purchases on e-commerce platforms, withdraw funds, or make hefty transactions. Worse comes worse, this can lead to terrorist funding.
This is why banks and other financial industries require robust identity verification to access the risks customers may possess. The digital problems banks face need efficient solutions. This way financial institutions can identify customers more accurately while identifying their source of funds. The AI-powered digital onboarding services use advanced technologies like biometrics and machine learning to identify customers and shield financial databases.
Synthetic Identity Fraud
Synthetic identity fraud is growing at a dramatic pace causing industries to bring in effective precautions. Criminals use information like names, social security numbers, proof of address, and birthdates to bypass identity verification checks. Sectors like finance, healthcare, law enforcement, and e-commerce need to incorporate biometric identity verification systems. This is not prone to human errors and provides accurate results by analyzing distinct features of customers.
Therefore, industries should bring in digital solutions to combat cybercriminals’ attempts. Shufti Pro Funding highlights that digital ID verification services verify customers by taking them through multiple checks.
Patient Identity Theft
Moving on, medical care centers are also experiencing a rise in medical identity fraud. It might not be a tangible threat but can still cause fatal consequences. Fraudsters commit data breaches to get access to legit patients’ details. They include payment records, medical records, case histories, and insurance details. Criminals can later use these to either back their costly treatments or avail other medical benefits.
However, a biometric identity verification system will identify them in minimal time. By using facial and fingerprint-based identity authentication, medicare providers can make sure that the right patients are getting the assistance. Ultimately, healthcare providers can safeguard their databases from external breaches and provide privacy to patients.
Identity Fraud in Law Enforcement Sector
Criminals are getting sophisticated and using various methods to steal legit information and use it for their benefit. This helps them bypass the identity verification services. Law enforcement agencies are commonly facing this issue. During the investigation, offenders often use false information or that which belongs to other citizens. This way they steer clear of the charges and put someone else’s safety at stake.
This is why law police departments, intelligence agencies, and other law enforcers need to incorporate digital identity verification. The AI-powered identity theft protection services help these law enforcement agencies to keep tabs on criminals while keeping their records up-to-date.
In the End
Technological advancements are driving every industry online making it easier for criminals to exploit illicit benefits. However, AI-powered identity verification solutions help industries steer clear of this threat. With their evolved technologies, industries can identify imposters in a glimpse. This ultimately drives accuracy and authenticity in the customer onboarding process. Hence, digital identity authentication solutions are the industry’s go-to options.
