Due to the rapidly growing digital landscape brought by the COVID-19 pandemic, businesses find themselves involved with plenty of transactions done online. Since they have limited physical exposure to their customers, digital identity verification, also called idverify, becomes vital to avoid fraudulent or suspicious interactions.
Implementing idverify measures could help them with their Know Your Customer (KYC), Counter-Terrorism (CT), and Anti-Money Laundering needs. Today’s method goes beyond the usual processes of authentication that use physical methods to determine identities. If you are running a business but have yet to decide if you want to implement a thorough identity verification for your new customers, these benefits can help you decide that now is the best time to do so.
#1: Helps Uphold or Improve Your Business’s Reputation
Businesses like Airbnb became widely successful because it makes both parties accountable. The travelers and hosts must provide a verified identity and keep favorable reviews all the time. This process helps establish trust from both parties.
A good reputation is highly important for all businesses, whether small enterprises or large corporations. Since there are plenty of choices nowadays, it would be easier for people to change their brand preferences if they do not feel secure. If you regularly run identity verification measures, it will prove to your customers that you are serious about getting their trust.
#2: Helps Avoid Paying Huge Fines
In 2019, the British multinational bank Standard Chartered was penalized by US and UK governments because of its weak money laundering measures. The bank had to pay $1.1 billion for this grave mistake.
Other businesses, especially small and medium enterprises (SMEs), will have difficulty paying staggering fines. It is the reason why KYC and AML measures are highly important nowadays.
KYC is a process that helps businesses identify their customers. It also allows them to analyze the risk of illegal activities. Meanwhile, AML talks about the laws, regulations, and government procedures to stop the process of declaring funds declared illegally as a legitimate source of income. If you practice these protocols, you do not have to worry about paying costly fines.
#3: Prevents High Chargebacks
Reports revealed that credit card fraud consists of a huge percentage of the number of identity fraud cases annually. But suppose your business allows your customers to pay their purchases using credit cards. In that case, it will be easier to encounter fraud and other illegal activities since they can easily fall under the “card-not-present” transactions.
Cybercriminals can use credit cards that belong to other people to buy goods. When the card owner finds out about the transaction, they can instantly cancel the transaction. If your business cannot track the fraudster, you need to pay back the money charged on the credit card. By using idverify apps, you can verify and distinguish all your customers.
#4: Boost Customer Service
Because of the tough competition, your business must consistently provide the best customer experience to attract more people to invest in your brand. In addition, you must ensure that you offer a seamless digital workflow that reduces the need for time-consuming paperwork processes.
You may integrate advanced biometric solutions and identity verification methods to help avoid keeping your customers waiting. They can reduce the need to submit plenty of documents to prove their identity. It will give more convenience to everyone who will purchase from you.
Identity verification becomes highly important when running a business nowadays. If you want to ignore complications that you may get from fraudulent activities and cybercrime attacks, you need to put your money on a reliable digital identification process as soon as possible.