Beyond the communication revolution of well-known social media sites, processes such as online banking and e-commerce are defining the digital landscape. While the potential for ease of transactions is on the rise, so is a digital intrusion that concerns personal information and security.
In 2019, the Consumer Sentinel Network received 3.2 million reports related to the consumer marketplace, and of those, 20% related directly to identity theft.
With identity theft on the rise as digital platforms continue to grow, understanding identity verification is more important than ever before.
1. Extra Layer of Protection
Identity verification is a set of strategies that ensures individuals are precisely who they say they are before moving forward with a process, transaction, or account creation. Identity verification methods are becoming more essential than ever in the digital realm as processes move more rapidly.
Whether a consumer is attempting to complete their taxes online, establish a personal, digital marketplace, or invest in online banking, identity verification is key to creating rights to accessing relevant information. It’s also an essential defense line in keeping others from hacking into private accounts or committing fraud by using personal information gained elsewhere online.
2. Verification Strategies
Knowledge-based authentication is one of the most common and effective identity verification methods. Verification Strategy includes personal security questions that a person must answer before accessing their digital accounts. These questions are very particular to the individual and make it difficult for hackers to answer.
Going a step further, companies may choose to enforce a two-factor authentication process. This technique requires a consumer to provide a personal piece of identifying information(mobile or email) to receive a one-time code.
3. An Industry on the Rise
While identity verification methods are becoming an integral part of keeping consumers in the marketplace safe from fraud, it’s also a growing industry in its own right. The financial side of these dedicated efforts towards keeping identities safe and managed in the digital and physical marketplace is on the rise.
It’s estimated that the identity verification market will jump to an $18 billion industry by 2027. Numbers like these are further proof that this particular marketplace is finding a vital role within an increasingly digital society.
4. The Fight Against Fraud
Companies that integrate identity verification processes into their business plan are often more trustworthy. Keeping private information safe requires a series of thresholds to cross before it can be accessed is an excellent way to build and develop a professional reputation.
While companies should keep identity verification standards a priority, it is also essential to educate customers on the many strategies in place. From device geolocation to ID document capture or real-time account checking, knowing the firewalls that should be in place is key to making informed decisions.
5. Future Forward Thinking
The future is undeniably digital, and the first step in protecting identities is to have identity verification methods firmly in place. This not only makes online processes more secure but is a quick route to fighting fraud over the long term.