Identity verification is a procedure in which the user must present two forms of identity. It includes things they possess and know (like a password) (or a card). This procedure aims to determine whether the user is who they say they are.
It is frequently used in online banking, where users must validate their identities before proceeding with any transactions. In other words, you need to present your ID with your marketing if you wish to use your debit card at an ATM. Some examples of identity verification providers include; SEON, Ondato, and Trulioo, among others.
Below are seven things that you ought to know about identity verification;
- Identity Verification Helps Prevent Fraud
Identity fraud is the deliberate use of another person’s personally identifiable information or identification documents by another person, with or without the express consent of the legitimate holder, to commit a crime, defraud another person or organization, or otherwise further their agenda.
In such cases setting up an identity verification process with the help of identity verification providers give you a clearer image of who you deal with when someone wants to buy or sell anything from you, which helps prevent fraud.
It assists in confirming that an individual is who they claim to be and not some random person attempting to gain access to your customer’s data. It also helps prevent identity theft, keeping customers’ sensitive information safe.
- Identity Verification Increases Customer Trust in a Brand
People frequently select one company over another because they believe they will be treated fairly and honestly. People feel more secure knowing the business has taken precautions to protect their information when they know their identity has been verified.
Additionally, identity verification makes it much simpler for customers to know who they are dealing with when they do business with a specific company. Online merchants can choose whether to verify before a person becomes a customer or after. The former enables the retailer to access the data anytime by storing it in a database. However, the latter is more practical for clients because they may decide whether to buy without giving their details.
- It Can Enhance Consumer Loyalty and Retention Initiatives
Utilizing identity verification systems can assist increase client retention efforts by lowering fraud and offering a more accurate record of business activities, which is one of their main advantages. When consumers know their sensitive information is safe, it creates positive brand recognition, further leading to customer retention. In the long run, better customer service and higher satisfaction levels will result from less worrying and more time to focus on other elements of your organization.
- It May Boost Conversion Rates
Identity verification is one of the best cloud-based tools to boost conversion rates. Personalized emails you send out must have the appropriate content. Sending emails to your consumers with promotions or product information unrelated to their interests can turn them off and decrease their likelihood of making another purchase from you in the future.
Identity verification solutions help you know who receives each email, whether a friend or an end user. They allow you to tailor communication further and make it more relevant for the recipient. Additionally, you’ll gain more knowledge about the source of those leads so that you may tailor your subsequent efforts appropriately.
- It Safeguards Your Company from Phishing Assaults
Phishing is a sort of online fraud in which a target or targets are approached via email, phone call, or text message by a fraudster pretending to be a representative of a reliable organization to trick people into disclosing sensitive information, including passwords, personally identifiable information, etc.
Every day, fraudsters target businesses to steal customers’ financial information. Therefore, your organization must have a defense against these assaults significantly by ensuring that consumers aren’t merely posing as someone else when they are trying to steal anything valuable from your business, such as customer information or money.
- Reduced Liability
Identity verification lowers the chance that consumers or employees who improperly access systems, don’t intend to pay their bills, or finish transactions will make fraudulent charges. This helps companies not lose money when compensating customers who would have been victims of fraud. By making it simpler to defend yourself from liability, your firm will be less stressed when dealing with clients who may not be paying customers.
- It facilitates Your Access to Top-Notch Leads
People anticipate that there will be some verification process when they submit an online form or click on a link to create an account or purchase from your website.
By using identity verification, you can make sure that all of your potential customers are actual people who are interested in creating a purchase from you rather than bots, spammers, or fake accounts.
In conclusion, consumers are anxious about data breaches. Businesses need to implement a seamless identity verification procedure that is customer-friendly and follows organizational policies to alleviate these worries and prevent expensive fines and money laundering problems.
Identity verification also ensures that the company involved does not go bankrupt due to compensating customers whose data was breached. Identity verification companies provide identity verification solutions to new and existing businesses to keep consumers’ information.