While the idea of identity verification for business may sound a bit overblown, it is a necessary element of any new business relationship. Whether a business operates on a digital platform or in a brick-and-mortar location, verifying the identity of customers and visitors is crucial. With a consistent framework, it is easier to detect and flag suspicious activity as quickly as possible. Here are some reasons why identity is important.
The most important reason to verify a person’s identity is to prevent fraud. It is estimated that online merchants lose billions to fraud every year. This includes card-present and card-not-present transactions. A significant percentage of these fraudulent transactions result in chargebacks, which can eat into a company’s bottom line. By preventing these unauthorised transactions, businesses can increase their revenue and customer satisfaction. Fortunately, there are many innovative ‘know your customer’ solutions available to help businesses make their process simpler and more efficient. For more details on AML Identity Verification, visit a site like W2 Global Data
ID verification helps to reduce the risk of fraud and data breaches. The number of data breaches has increased exponentially in recent years. In the meantime, fraudsters have adapted complex techniques to circumvent traditional methods. This means that they can easily steal money, commit identity theft, and take over accounts. This is why businesses need to have a robust identity verification process. Identification validation is the first step in reducing these risks.