How are identity proofing methods evolving to meet changing needs?
Verification of the identity of users is a critical requirement in several business processes. The onboarding of customers or employees requires a robust validation of credentials. Beyond KYC and regulatory needs, identity proofing is essential to minimize business risks. Conventional processes entail data-centric approaches, which involve the collection of details and their verification against databases or credit bureaus, while most of the work is carried out offline by back-office teams.
What’s driving the change
For modern businesses, fail-proof identity verification is all the more critical today. As fraudsters step up their game and invent increasingly sophisticated techniques, it’s essential to adopt newer strategies to thwart such attempts and reinforce the onboarding workflow.
Today, cybercriminals acquire Personally Identifiable Information (PII) through several methods such as highly targeted snooping of social media content, malware, or engineered data leaks. With this information, they assume the identity of the genuine user, get access to services, and proceed to defraud banks or financial institutions.
A few common threats are:
- New Account Fraud: A criminal impersonates another user that enjoys a good credit rating to open a banking account. They use fake credentials, borrow a large amount of money, and disappear, leaving both the bank and the genuine user in the red.
- Sleeper Fraud: A conman acquires a credit card and maintains a healthy usage and repayment history for the first few months. After a while, they max out the card, don’t clear the bill, and become untraceable.
- Account Takeover: A fraudster hacks into an authentic user’s account through credential stuffing, withdraws the money, or makes unauthorized purchases without the account holder’s knowledge or control.
Such possibilities go beyond compromising personal accounts. Networks of criminals operate in this space, with the proceeds of the crime funding money laundering and illicit transactions
The loss suffered by banks is not just financial; the debilitating damage caused to the brand’s reputation is immeasurable. Identity affirmation approaches must be reimaged to tackle the challenges.
Ideas that are revolutionizing identity verification
Technology-driven tools have already been transforming identity proofing methods, addressing the limitations of conventional approaches, and combating online fraud with innovative ideas. These applications aim at:
- Boosting the accuracy of face detection with AI-powered visual analytics: Facial recognition tools have been around for years. When enhanced with AI/ML, they acquire the precision and reliability required to process images of varying quality and complexity. Modern onboarding tools incorporate live video sessions that support image quality corrections and automatic cross-verification of the identity between a captured video and a photograph embedded in documents.
- Spotting doctored or reused photos or videos with powerful image forensics and liveness detection: Criminals keep attempting to hoodwink identity verification tools with recorded videos, publicly available photographs, or 3-D masks. Deepfakes take these a notch ahead with realistic imagery. Modern tools apply advanced algorithms to distinguish such attempts, eliminating vulnerabilities in video and photo verification tasks.
- Offering customers a delightful experience with friendly user interfaces: Introducing online KYC causes some friction, as it is still required to add additional steps like liveness checks to ensure safety and security. However, by optimizing the user experience and automating as much as possible, the exercise is simplified, making it more appealing and intuitive, leading to wider acceptance.
- Accelerating workflows, lowering costs, and enhancing operational efficiency: Customer demand onboarding decisions in seconds, not days. Modern tools employ automated or AI-assisted techniques that speed up workflows. Operating expenses can be reduced with better utilization of employee resources. With error-free, streamlined, faster decisions, business efficiency improves.
Momentous changes are shaping the future of onboarding and identity verification. The pace of transformation is hectic, and we already see several ideas in action. With newer applications envisioned and built every day, it’s exciting to think of what the future may hold.
How do the changes impact users?
- Banks: A robust identity proofing strategy helps organizations improve efficiency, reduce risks, and achieve quicker onboarding of customers while meeting KYC regulatory mandates.
- Customers: Users enjoy account opening facilities anytime, from any location. A trouble-free process and instant account activation turn it into a delightful experience.
Be a forerunner in adopting cutting-edge identity verification tasks. Get ahead with the right tools and stay ahead of the competition.
Let’s make your identity proofing process future-proof
Digid is a digital identity verification and onboarding solution that facilitates faster, robust, and secure authentication and onboarding of customers. Built with cutting-edge AI technologies, the solution helps organizations enhance operational efficiency, comply with e-KYC needs, improve customer satisfaction, and grow their market share.
Leverage real-time digital identity verification services augmented with liveness detection to offer remote onboarding options to customers. Be ready to revolutionize/transform your account opening and customer engagement processes.
The future of onboarding will be driven by digital technologies. Let’s help you get there.