Preventing Online Scams Through Digital Identity Verification

[Tara Cruz]

With digitalization, internet access has become easy globally. Due to this Internet scams and frauds are rapidly increasing and evolving with time. According to stats provided by the FBI $3.5 billion was lost due to online fraud. The imposter tends to use smart gadgets having internet access to perform criminal activities. The illegal money is then used in terror attacks and money laundering majorly. KYC money laundering regulations are the most effective to overcome money laundering cases. For online businesses, such frauds are red flags that eventually affect their reputation. 

What Is Digital Identity Verification?

Online identity verification to know your customer is a process of validating the end-user identities digitally. AI-Based technology is used in verification methods which makes them efficient and faster. Digital identification also verifies the documents of the end-user, as well as facial recognition, is done to authenticate the live presence of the person.

Why Are Online Scam Detection Systems Needed?

Most Online businesses are affected through scams and fraud. They are not able to balance the customer’s experience and security. Providing a better customer experience is a business priority but a lack of security protocols increases the possibility of fraud. Eventually business has to suffer financial loss. Thus online scam detection systems have robust ID verification measures and businesses are obliged to implement them to provide a top-notch customer experience with efficient security protocols.

Businesses Affected By Online Scams 

With the increasing numbers of frauds, businesses face imposture online scams. Digital businesses have to work on the KYC, CDD, and AML regulations and must apply them to their business in order to mitigate the risk and threats which are raised by fraud. Some of the businesses affected by this disease are

• E-Commerce Business

The pandemic situation has boosted up the e-market services and e-commerce got a lot of attention. Billions of transactions are done on a daily basis thus making enough room for scams and frauds to take place. fraud such as Payment through stolen credit cards, using synthetic identities for transactions, etc. are done which directly affects the business. To overcome such a situation, an efficient KYC authentication solution is best which provides promising results.

• Gambling Business 

The gambling business is one of the top revenue-generating businesses around the globe. The gambling platform is of great attraction among money launderers and cyber imposters. The criminal launders his black money through this platform.. KYC anti-money laundering regulations are most appropriate and must be mandatory in gambling businesses to prevent money laundering as well as to authenticate the transactions.

• Healthcare Business 

The medicare sector has also become a victim of cybercrime. Healthcare businesses attain a large number of datasets having loads of private information of patients and hospitals. Due to insufficient security measures, this information is hacked and manipulated by impostors. On access to such information, the imposter is able to claim insurance rewards, avail online prescriptions, and even do money laundering by taking over the identities of others. KYC money laundering laws and online fraud preventers are the solutions to mitigate such happenings.

• Blockchain And Crypto Business 

Cryptocurrency is the top trending topic throughout the world. With the digitalization of technology, people are using digital currency for carrying out transactions. Thus these means are not completely applying KYC crypto regulation due to which the imposters are able to do scams with the people. fake crypto sites/apps, scamming emails, fake ICO, malware attacks, etc. are among the famous frauds of this business.

In What Ways The Online Scams Can Be Prevented

Online businesses and corporations can use a robust KYC authentication solution to prevent online fraud and financial crimes. To prevent such scams AML and KYC regulatory compliance must be used by the business for the identity verification of the customers before onboarding them and providing them the services. The customer’s information must be kept protected and it's the duty of the business to do so. The business while making customers’ experience better should keep an eye on the security vulnerabilities and should make them sufficient that no one can run fraud.

Final Thoughts 

Online scams are exponentially increasing. The impostor activities should be thoroughly monitored and examined through KYC and AML screening solutions. KYC money laundering regulations are the best way to track down money laundering activities. With the modernized means, businesses should have to put a stop to such scams and surely provide a safe environment to the customers.