Small Business

Why Businesses are switching to Identity Verification and how it protects You Too

Online retail continues to grow and current forecast estimates that the trend will continue into the future. With numerous stores having an online presence, more and more people are enjoying the convenience of shopping online. Unfortunately, this means that cyber-criminals get even more opportunities to commit identity theft with every new account opened. However, businesses are taking precautionary measures to better help customers protect their personal information when shopping online, be it on a mobile device or a laptop computer. Switching to identity verification has become the new approach adopted by many businesses, to minimize identity theft and offer shoppers increased peace of mind regarding the safety of their personal information.

Online Shopping and Identity Theft

The Federal Trade Commission (FTC) reports that in 2017, credit card fraud was one of the top three types of identity theft committed in the U.S alone, with 133,015 complaints. A 2017 identity fraud research found that overall fraud incidence rose 16%, impacting 6.15% of U.S. consumers, or over 2 million more victims. Cyber-criminals are becoming more cunning and continue to develop new ways to bypass data protections. The problem of identity theft is not going away overnight, and even as consumers become savvier at protecting their personal information, more protection is needed in response to the rising breaches.

The Switch to Identity Verification

Millions of transactions occur online and the need to guard against sophisticated fraud attempts with solutions that are effective and reliable, changes with each new cyber-attack that targets online businesses and the consumers that use their services. Financial transactions online require consumers to give pertinent personal information, all the while trusting that it would be kept safe. Identity verification has gradually replaced conventional identity matching of credentials, like date of birth and address, or even social security number. Businesses are making this switch to strengthen consumer protection, by guarding their personal data using advanced identity authentication methods.

 

How Identity Verification Protects

Businesses care to know that the person on the opposite end of the transaction is not a cyber- criminal or fraudster. Identity verification is used to confirm an identity, often requiring a real-time process that validates the personal information provided by the consumer when shopping online. It protects individuals by offering several levels of identity verification based on the form of identity assurance required, such as to confirm that an identity is real, or to provide higher assurance that an individual is who they claim to be. Two-step verification and biometric verification are two examples of identity authentication methods that businesses are employing. There are various identity verification solutions that capture and verify customer documents with ease and helps to protect consumers’ data.

Online shopping has been an ever growing activity of consumers and the number of identity theft increases each year. It is important that businesses help to protect the personal data of online shoppers. Identity verification is one of the ways that businesses are stepping up their online security, giving customers increased peace of mind.

 

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