As technology is reaching new heights rapidly, the number of fraudsters within the digital web has also increased. The main weapon for these fraudsters is forged identities. These people hide behind a fake identity and conduct their network, once the work is done, they become untraceable. Hence, it is extremely important that everyone should have proper identity verification. This article will focus on the three reasons digital identity verification for KYC cannot be overlooked.
Three Reasons To Complete the Digital Verification for KYC
KYC verification is required to prevent fraud and other purposes, such as protecting minors. Moreover, it has been witnessed in several cases that fraudsters use minor accounts to fulfill their agenda. Hence, digital identification will help serve both purposes.
- Regulatory Compliance
This approach is more than just a choice or option; rather, it is a governmental rule that needs to be abided by everyone. If the rule is not followed, there can be serious penalties as it is associated with terrorist funding as well. Hence, to ensure a smooth operational flow and secure business, automated verification for portable identity is extremely necessary.
- Safeguarding Minors
Age verification can be one way to protect the interests of minors, but it cannot be trusted alone. This is because accessing matured content or other adult sectors has become extremely easy in an era where the internet is immensely accessible. Hence, proper digital identification is necessary to stop their access to industries like alcohol, gambling, gaming, social media platforms, strong drugs, etc.
- Resisting Frauds
The number of frauds is rapidly increasing; hence, digital identity verification is necessary to resist them. Using technological software and devices like face recognition, live data, etc., accelerates the detection of potential fraud within a few minutes, which was not the scenario in the earlier times when the verification was done manually. Hence it is necessary to complete the Digital Identity Verification for KYC of each person.
Which Industries Need This Identification The Most?
Although, in the present situation, according to governmental guidelines, this identification is necessary for every business, there are several sectors that cannot be managed without it. Some of them are,
- Financial Services
Sectors dealing with banking, crowdfunding platforms, insurance companies, and digital payment platforms must utilize this identification approach to ensure fewer frauds, a better onboarding process, and a satisfactory customer experience.
- Ecommerce
The main type of fraud in this business is manipulating online transactions. Hence, identity verification is required to conduct more secure transactions and better shipping operations.
- Gaming/Gambling
There are a few gaming sites that are strictly for players above 18. Hence, a digital identity is important to ensure that children below eighteen years of age do not get access, which is also the situation for gambling.
- Pharmaceuticals
There are many steroids, painkillers, etc., which are manufactured from hardcore drugs. These medicines cannot be consumed below eighteen years or without a clinical prescription. Hence, such pharma companies must have digital verification for KYC.
Final Thoughts
Most of the business sectors are now shifting to automated verification for portable identity to ensure the safety and security of their operations. This approach is extremely beneficial in an era where fraud is so frequent.
Mark Johnston is the author of this article. For more details about Risk Management for KYB please visit our website: incode.com
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