Different industries are choosing digital measures to safeguard their records as technology advances. Because of fraud cases involving identity theft, financial institutions must endure significant losses. The usual method of impersonation involves stealing credit/debit cards, NIC cards, and other types of fraud that businesses must deal with.
Age verification is necessary as businesses are becoming more digital. In order to stop fraud and spam, there is a requirement for age verification. This follows KYCC compliance. Shufti Pro news and research estimates that 1.46 billion customers conduct business using digital platforms, and that number is expected to increase by 46% at the end of 2021.
Significance of Digital Age Verification
Businesses can avoid paying huge penalties and other losses when they correctly comply with the rules. If a minor is attempting to access the digital onboarding system, online age verification systems will identify this. The majority of nations have an age restriction of 18, while a few have a 21-year-old threshold. Digital platforms use real-time face identity verification to scan the ID card and continue with the age verification process. Verification is utilized in the corporate sector to expedite the procedure while increasing accuracy. Here are some steps that the identity verification service takes to ensure compliance:
- Date of birth, age, and gender are necessary pieces of information, and the customer must scan all supporting documents to confirm age. Driving licenses, passports, ID cards, and other identification documents are among the documents.
- The system then uses OCR, or optical character recognition, to extract information from the documents to compare them with previously added data. It also checks to see if the documents have the same format and are free of any forged or false information.
- Following completion of the identity verification process, the clients are shown the results before being sent back to the office. Digital age verification is becoming more common since it is more precise, quick, and dependable. Because of this, firms can quickly confirm age.
Advantages of Online Age Verification
The banking industry urgently needs to implement age verification online for the sake of security and safety. These methods help the banking sector in different ways:
- Bring in reputable customers
- Explain the steps to protect them to both adults and children from frauds
- Verify that clients’ customers are legitimate
- Fighting fraud by taking preventative measures
- Upgrading financial and record security
- Improve customer experience
Online Age Verification Process Workflow
The age verification system enables various businesses and institutions to safeguard new customers from being duped by scammers. The Customers must upload their identifiable information digitally (PII). Furthermore, the customer needs to submit a photo. OCR software can retrieve the information and then compare it to the data that is already available to validate the age verification solution. The purchasing and selling of goods and services is one of the many automations that can be found today online. This viewpoint demonstrates how individuals of all ages engage in automated processes to perform tasks and carry out business.
Identity Theft on Online Platforms
In today’s technologically advanced age, creating a false online identity is very easy. Fraudsters always find a creative way to take advantage of a company’s loophole. If banks didn’t figure out the age verification checks, customers would suffer severe losses. Businesses utilize identity verification as a safety measure against fraud for consumer accounts. Hence, online identity verification comes to the rescue.
Bank Card Fraud
According to research, there will be a rise in credit card fraud in 2019, with the percentage reaching about 44.7. Because children frequently use their parents’ or other adults’ credit cards to make transactions, age checks are a crucial solution.
Such scams take place when con artists impersonate another person. Fraudsters are capable of fabricating any type of information, including names, addresses, and ages. Because age verification online doesn’t completely prevent them from escaping, the creation of scam accounts has decreased. The banking industry must adhere to KYC and KYCC to verify information, including age.
Customers and businesses alike must use age verification as an essential solution. The need for verification services has grown. Verify age checks to make sure that businesses are only utilizing legal resources and taking preventive measures to avoid having to deal with any repercussions. In addition, a number of businesses have their own banking applications, and in order to protect these platforms, age verification has become a crucial step for almost every business. To improve the business sector, age verification solutions are now available on the market with a variety of technologies.