The E-commerce business has succeeded over the last few years. Covid-19 has also pushed vendors to have a digital platform. The education sector initiated conducting online classes. A lot of people started opting for online services for shopping and mobile banking. What else one could ask for when they can perform activities from the comfort of their homes, but there is a downside of it as well. Fraudsters have become sophisticated in doing online crimes. Identity validation is crucial to control such frauds.
Pandemic has put businesses into a situation where they had to close their doors on a temporary basis. Companies that somehow managed to have themselves open took full advantage of the ones that were down at that time. Cybercriminals benefitted themselves from those most uncertain times for businesses and their rapid shift towards digitization.
Identity validation – Preventing online frauds
Fraudsters quickly adapted to those changes, upscaling their abilities to target online transactions. Furthermore, perpetrators underwent phishing attacks, ransomware, and identity frauds to attack customers and merchants. The only thing that survived the e-commerce businesses at that time was the identity verification service.
Considering the situation, e-commerce had to speed up its efforts to ensure that users are genuine and therefore transactions are safe. It made them adhere to anti-money laundering (AML) and know your customer (KYC) regulations. This reflected making use of the identity validation to identify customers, securing existing users from crimes like account takeovers, and avoiding illegal transactions.
But vendors must regard the user experience too. Customers nowadays who are accustomed to using digital platforms expect to get their work doen at a faster speed. If identity validation would take forever to complete, it will adversely impact the customer experience. Therefore, businesses are required to have a balance between giving streamlined customer exposure and identity validation services.
Online ID Verification – What it is all about?
Simply put, identity verification reflects the process of ensuring that a person is who they say they are. These validations are crucial in preventing imposters from committing such crimes. Identity validation in the e-commerce industry verifies the data of users like phone numbers and postal addresses to authenticate customers. The information can be gathered from a series of sources like banks and others.
IP address and devices’ information are also needed to identify that the user exists in reality. For example, whenever a user’s account is accessed, businesses would perform an identity validation check. For the id card verification solution, users are required to give proof of their identity. This could be a code sent to users from businesses through email addresses or mobile devices. Customer identity validation can be performed at many events. Few examples include the time of customer onboarding, account opening, and making a purchase of an age-restricted product such as alcohol.
How Significant Is Digital Identity Verification For Digital Merchants?
The E-commerce industry is considered the preferred one of fraudsters to commit illegal activities. They use fake or stolen identities to perform digital transactions. These consists of account takeovers, payment card frauds, phishing attacks, where cybercriminals imitate merchants’ messages to access to the retailer accounts.
The current scenarios have made users avoid online activities. They hesitate that their information is already stolen. Identity validation plays an important part in merchants’ repositories to combat identity theft. They detect and prevent fraud by deploying solutions like online id verification solutions to deliver a seamless experience to users while shopping online.
Combatting Threats Of Online Identity Fraud
Perpetrators are becoming sophisticated in their tricks to left the merchants unprecedented. A lot of e-commerce platforms are worried about escalating threats like synthetic identity theft. It combines together legitimate and fake user data to develop a new identity. These threats can be eliminated by deploying digital identity authentication of users.
To ensure the security of customer information and digital transactions, e-commerce merchants should advance their approach. Increased usage of automated machine learning may help businesses that trade through online means to combat fraud at a large scale while ensuring the optimal customer experience is achieved.
Summing it up
It is a fact that each business is facing crimes at this age. The e-commerce industry especially is under attack these days. Identity validation is the only way to ensure the security of such platforms. E-commerce is striving to strike the right balance between customer experience and protecting customer credentials.