The benefits of technology are vast and have led to numerous improvements in our lives. However, these advancements also bring about particular challenges. Digital transformation comes with a huge problem of data proliferation. Massive amounts of data are generated, collected, and stored on a daily basis. This data includes personal, financial, and business information, making it sensitive and a primary target for cybercriminals. This data can be used for targeted advertising, unauthorized surveillance, and creating synthetic identities, which raises enormous security and ethical concerns.
Hackers and cybercriminals are evolving at a rapid rate, their methods are becoming more subtle and malicious. Identity fraud caused a financial loss of $52 billion and impacted 42 million U.S. adults in 2022 alone. To effectively tackle these obstacles, it is imperative to establish robust verification systems at this point in time.
Identity Verification Systems: Full-Scale Security
SaaS companies have been working ever since the digital revolution started to develop verification and security systems to battle online threats. Identity verification systems are incorporated into a company's onboarding processes, but it is to be noted that they're not limited to it. Modern verification systems are AI-integrated and can function on their own. They can verify individual users, enterprises, and transactions and even calculate the extent of risk related to a function.
IDV services extract essential information from a user's documents and scan it against global watchlists to ensure the entity's legitimacy. This helps businesses prevent potential risks such as fraud and identity theft, improving customer experience and the business's performance.
E-IDV: The Future of Identity Verification
In our increasingly digital economy, which is likely to become fully digitized soon, it is necessary to have a completely digital identity verification (IDV) solution. However, the world has started to see a rise in totally digital, portable electronic IDs. Once an e-ID for a user is made, it performs both active and passive verification. With the increasing adoption of EIDV solutions by countries, traditional KYC solutions will eventually be replaced by them. This is because E-IDV solutions do not require the entities to be physically present or actively participate in the verification process.
Leading IDV service providers are revitalizing their product suites to focus on E-IDV, as they have ascertained the value of this solution in the evolving market. AI-integrated identity verification systems offer E-IDV solutions that provide businesses with a robust and flawless verification system.
Preventing Identity Theft
What gives e-IDV services the upper hand over traditional KYC services is their ability to totally eliminate identity theft. In their case, each user is assigned their own unique digital ID, which can not be reproduced. By implementing e-IDV solutions, companies can establish a centralized database that assigns unique IDs to every user, eliminating the possibility of identity theft.
Eliminating Fraud
E-IDV solutions possess the ability to eradicate fraud and scams totally. Companies can refer to their e-IDs to verify their legitimacy when dealing with an entity. KYC services refer to watchlists and IDV databases to verify the identity of the entities the company is dealing with. Access is immediately denied if the database flags any concerns or if the entity fails to meet the requirements. This ensures fraudulent activity is stopped before it can even begin.
Enhanced Compliance
E-IDV is a solution that takes compliance with rules and regulations to the next level. Robust and elevated levels of data security and record keeping ensure that companies comply with KYC/AML and global data privacy regulations whilst meeting the regulation requirements of the country or jurisdiction they're functioning. An existing e-ID allows companies and users to save the hassle of performing repetitive compliance checks.
Improved User Experience
Automated Electronic identity verification solutions provide users with an effortless and hassle-free verification experience. By eliminating manual processes, these solutions save companies a lot of resources that would have otherwise been spent on conducting manual tasks. On the other hand, clients and customers save themselves the need to be physically present for all verification checks.
Pioneering E-IDVs: Will They Thrive?
E-IDVs are being introduced into the market by existing verification services providers, which will soon render paper identification documents obsolete. Modern e-IDV solutions cater to users by providing them with more efficient, quick, and smooth identity verification processes. The global e-IDV market is expected to grow significantly in the coming years, and the increasing digitization of the world economy has contributed to leveling the ground for these innovative solutions.
Overall, the future of the e-IDV market is promising. These solutions are being used by businesses and organizations worldwide to protect themselves against cybercrimes and fraud.
