3 Ways Identity Verification can Protect Your Business from Fraud

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In the past, it was easy working with people since you knew who they were. You knew every single detail about them including their name, family, and where they came from. However, that era is long gone. In the current world, it is impossible to identify every person since technology has made it possible for businesses to occur remotely. The e-commerce business, for instance, is growing at the rate of 23.7% every year. Businesses take place across the globe making it even difficult to know who you are dealing with. Given this situation, how possible is it to mitigate or prevent fraud? With so much of everything taking place online; it is now easy for fraudsters to propagate their activities. Personal Identifiable Information can now be found in numerous databases, making it possible for criminals to acquire IDs and conduct their activities. It is your responsibility as the business owner to ensure your customers are protected from these incidents. The costs of prevention are not as heavy as the cost of a breach as these could ruin you financially and destroy your reputation as a business. Identity verification can help in various ways:

Stop Fraudster before They Begin

The best time you can stop a fraudster is before they begin their activities. The first step is utilizing a trusted identity verification service. This is a KYC (Know Your Customer) and Anti-Money Laundering (AML) compliance and goes a long way in helping to minimize fraudulent activities by identifying data mismatches. Conduct due diligence on your customer and understand their nature to determine whether or not they pose any threat. You can consider adding a layer of verification by conducting identity document verification. You can also utilize fraud detection tools to offer additional options for risk management.

Keep a Keen Eye

When conducting business transactions, there are various suspicious patterns which continuous monitoring can detect. Unusual locations, purchases, devices, and quantity are among some of the signs you should watch out for. Not every account is similar, so monitoring techniques are likely to differ. Create risk profile so you can determine the techniques you’ll use to monitor different accounts. Moreover, do not evaluate accounts in isolation; if you can monitor across multiple accounts, you’ll get a better profile match.

Multi-factor Authentication

If you are not comfortable with utilizing passwords, multi-factor authentication can be of great significance. With the right security systems in place, you should be in a position to use various secondary authentication techniques for logging into apps and sites. These methods can include phone calls, one-time passcodes, push-notifications, among others. These processes make it difficult for criminals to access accounts since they will need to know your password and have access to your device. Although the multi-factor authentication could slow down processes, the peace of mind which comes from its implementation is worth the tradeoff.

The truth is; investing in security solutions is just but a piece of the puzzle. Dedicating your time and effort on matters of security is also crucial in identifying and preventing fraud. This two aspects combined will help protect your business and your investors.

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