Slashing frauds and boosting profits with a robust identity proofing system
Identity theft bleeds businesses billions of dollars annually, a staggering problem that’s escalating rapidly. In America alone, the cost stands at a frightening $52 billion, and this figure is skyrocketing by 42% each year. It’s a never-ending battle, and outdated systems just won’t cut it anymore.
This results in customers quitting halfway through due to a frustrating signup process. It’s enough to make any business executive sigh.
Are you tired of playing catch-up with fraudsters and watching good customers walk away? Then, a strong identity-proofing mechanism could be your answer. Do not misjudge it as fancy technology. It’s the key to protecting your business’s profits. It streamlines operations and gives customers a great experience.
Ready to learn about the real financial impact of an identity verification system? Keep reading this blog.
Why traditional verification isn’t enough today
Old verification methods relied on basic ID checks. They might have worked in the past. But fraudsters are constantly evolving. These days, stolen data is easy to access on the dark web. It makes those “secret identities” no secret.
The result? Your business takes a financial hit every time a fraudster slips through the cracks.
Traditional verification systems emphasize manual processes. Employees spend hours poring over documents, making phone calls, or trying to decipher blurry ID photos. Each minute eats into your bottom line.
Today, people expect speed and convenience. Around 80% of consumers prefer transacting with businesses that have digital identity verification. When your onboarding process feels like a marathon, potential customers lose patience quickly. They abandon applications midway, ditching your business before you even have a chance to serve them.
How digital identity proofing works as your safeguard
Digital identity proofing is like a high-tech bouncer for your business. It uses a combination of tools to confirm that people are who they claim to be, slamming the door on fraudsters.
It goes deeper than just verifying driver’s licenses. Digital systems analyze documents in real time. They spot subtle forgeries that slip past humans. Biometric verification and knowledge-based verification (KBA) – these unique tools of identity proofing are tough to fake. They add a powerful layer of security.
In digital ID proofing, instead of manual checks, smart software handles the identity proofing process. This cuts processing time dramatically while reducing human error. This makes it much harder for criminals to use stolen identities. When they can’t get in, your losses decrease, and profits increase significantly.
Legacy verification is like a rusty padlock. Identity proofing enables smooth, secure onboarding and guarantees people to trust your business and complete transactions.
Tangible financial benefits of identity proofing
1. Fraud losses drastically reduced
In 2023, there was a drastic increase in fraud at 56% in digital payments, according to AU10TIX. These fraudulent transactions are like a hole in your business’s pocket. Identity-proofing shuts down these loopholes criminals love to exploit.
Digital ID proofing systems are incredibly tough to fake. For example, two-factor authentication adds an extra layer of security. It requires users to verify their identity through a password. They also need something they have, like a numeric code or OTP.
2. Customer acquisition costs drop
Traditional onboarding often feels like an uphill battle for your prospects. Around 84% of businesses feel human errors are the cause of security compromises. Digital ID proofing changes this dynamic completely.
When signup is online, secure, and painless, people are far more likely to see it through. This means reduced acquisition costs. You don’t waste marketing dollars on leads who abandon the process.
3. Customer satisfaction scores soar
Happy customers are the lifeblood of your long-term success. 55% of customers say security is the most important thing to them. That’s why digital proofing creates a good experience. It leads to more loyalty, signups, and word-of-mouth. Confident people are far more likely to stick with your business. They will also use your services more.
4. Adapt to a changing landscape
Fraudsters are always evolving their tactics, so your defenses need to evolve too. Technology, like artificial intelligence, leads to new threats. Examples are deepfake and synthetic identity. Thus, your solution needs to grow seamlessly with your business.
Many businesses have developed biometrics systems to combat these challenges. You should also update your systems based on the latest threats. This will ensure a layered way to verify identity.
FAQs
What is the purpose of using a verification suite?
Verification suites help confirm the identity of individuals or businesses. This is essential for financial transactions, customer onboarding, and preventing identity theft.
Can we do document verification on mobile?
Yes, you can perform document verification on your mobile device. Specialized apps use your phone’s camera. They scan ID cards, passports, driver’s licenses, and other documents. These apps then use advanced technologies to check for security features and ensure the document is genuine.
What is the best verification method?
Biometric Verification is the best verification method. It uses physical traits like fingerprints, facial recognition, or voice patterns. These traits are very secure and convenient.
How to check a person’s identity?
To check a person’s identity the most reliable way is to examine a government-issued photo ID (driver’s license, passport, etc.). Carefully compare the photo and information to the person standing in front of you. If possible, request a second form of identification as well.
In the end, the question isn’t whether robust identity proofing makes sense or not. It’s whether your business can afford to wait. Every day with outdated systems in place is another day you’re losing money to fraud, frustrating customers, and leaving your reputation vulnerable.
The financial benefits of a strong digital identity proofing we’ve discussed are real, not just theoretical. They offer real gains, which your competitors may already be enjoying. That’s why understanding the ROI of these systems is the first step.
