With over 5 billion global internet users, industries’ efforts towards bringing digital services are increasing. From ordering products online to playing e-sports with worldwide players, digitization is changing the landscape of every industry. Where more customers drive reputational uplifts, the easy access to online platforms is also opening doors to fraudsters. In this case, industries face a rise in chances of identity theft instead of generating high revenues.
Industries’ rapid adoption of technological advancements is bringing consequences like inefficient identity verification. The AI-powered services not only help digital industries to secure their operations from fast-growing forms of fraud but also improve customer experience. The blog provides insights into how digital ID verification is the solution to modern criminal threats.
A Detailed Overview of Synthetic Identity Fraud
While industries are bringing technological advancements in their operations, criminals are also making efforts to exploit them. In order to escape the identification checks, fraudsters commit synthetic identity fraud. As it involves use of stolen, forged, or manipulated data, criminals easily defraud industries. This is the most sophisticated and hard-to-spot category of fraud.
By using fictitious information fraudsters create an entity that does not exist in the real world. This helps them easily escape the ID verification checks. Moving on, synthetic identity theft can further take the following forms:
- Camouflaged Identities
Fraudsters use genuine information to create a fake identity. They get their hands on these details either by committing data breaches, stealing documents, or copying from online platforms. This type of identity theft has another name – Frankenstein fraud.
- Fabrication of Identity
Fabrication is the process of creating a completely fake identity without using any Personally Identifiable Information (PII). Criminals use this technique to trick ID verification checks. Due to entirely fictitious information, it gets challenging for industries to identify fraudsters. However, with automated digital onboarding solutions, they can overcome this problem.
- Modified Identities
As the name implies, this type of fraud involves slight chances within the genuine identity information. Fraudsters create a new identity by altering the details of legit customers and using it to dodge ID verification systems.
In addition to this, criminals also use deep fakes to make their fake identities look legit. With rapid technological advancements, fraudsters have various advanced tools at their disposal. This helps them create a fake appearance and steer clear of identity verification checks. Furthermore, through illegitimate digital onboarding criminals apply for governmental relief programs, avail medical benefits, and commit other crimes.
Identity Verification Services – Industries’ Solutions to Detect and Prevent Fraud
It is getting nearly impossible for traditional verification methods to identify synthetic fraud. This is mainly because criminals use digitally advanced methods that are hard to fight by manual verifiers. However, biometric identity verification systems include various features such as facial, fingerprint, and iris/retina recognition that industries can use to identify criminals at the time of registration.
Moreover, liveness detection further mitigates the chances of fraudsters bypassing ID verification checks. The AI-powered solutions accurately draw a line between pre-recorded videos and real-time presence. The digital identity theft protection solutions further provide the following processes to detect and prevent fraud.
Facial Biometric Verification
In order to combat the rising threat of identity fraud, facial biometric verification is providing robust solutions. By employing mathematical algorithms and AI-powered mapping, this technology streamlines the customer identification process. Moreover, in case fraudsters use fake information or documents, ID verification solutions identify them by analyzing distinct facial features.
Moreover, the identity verification services are embedded withlatest technologies that can validate customers even if they are weaning glasses or not looking at one focus point. By integrating IDV into security systems, industries can ensure they are onboarding legit clients and prevent reputational loss.
Another improved check provided by AI-powered is liveness detection. This refers to the analyses of customers’ backgrounds to ensure they are present in the physical world. Fraudsters often use pre-recorded videos to dodge ID verification services. However, with authentic biometric solutions in place, industries can ensure that the clients are who they claim to be.
Moving on, with in-depth 3D analysis, identity authentication ensures real-time identification which not only streamlines the onboarding process but also provides convenience and security to customers. Ultimately, liveness detection serves as a robust solution to deter identity theft cases.
While fraudsters are putting efforts to manipulate digital industries, online identity verification services are safeguarding them. With the rise in criminal threats, it has become mandatory for businesses to bring in result-driving solutions. To deter synthetic identity fraud, AI-powered solutions provide robust IDV services. Services like facial biometric verification and liveness detection are the sure ways to identify criminals prior to onboarding.