Share this:
Credit card fraud is one of the most prevalent identity theft cases — more than 167,000 people had reported that a fraudulent credit card account was opened with their private information, most of which happened when they were trying to register or carry out a transaction on a site.
With these statistics, the likelihood of you or someone you know being a fraud victim is very high. And this has led to an increasing need for businesses to check that customers are genuine while protecting their data and tackling fraud.
This guide will teach you the steps required to detect and prevent fraud.
Verification of Mobile ID
Customers can use their smartphones to take a photo of their driver’s license, passport, or resident identity card and upload it to the onboarding system when mobile ID verification is available.
Using advanced, automated neural networks and multi-layered image filters, the technology can optimize, enhance, extract, and validate the digital content to ensure the photo’s authenticity. Adopting ID verification can help prevent fraud while allowing customers to continue to use their mobile devices.
Facial Recognition Software
It’s crucial to ensure that a client hasn’t stolen someone else’s identification. It makes sense to use facial recognition software because it combines military-grade liveness detection with auto-capture to ensure that applicants are taking live pictures of themselves.
When used together, the intelligent automation software can compare the applicant’s selfie image and videos to the photo on their ID. Only if a match is found will the applicant be accepted.
Run Background Checks of Known Fraudsters
A potential identity thief in today’s world has access to millions of expertly forged documents and stolen personal identities. This is where biometrics come in handy for identifying them.
It’s possible to search databases of known fraudsters using their biometric signature, such as their facial image. If there’s a match, it’s best to decline the remote transaction and ask the customer to visit a branch to finish their business.
As new payment methods reduce the use of cash, the need for customers to have physical cash diminishes. However, there’s a need for a trusting relationship with their financial institutions.
Biometrics and ID document authentication technologies can assist financial institutions in acquiring new customers and providing top-notch services without human intervention.
Document Verification
You can capture fake or falsified documents using machine learning, Artificial intelligence, and dedicated 24/7 identity verification specialists. This hybrid process ensures that identity data checks determine which identity document is genuine or damaged and is free of tampering marks. This ensures that an Identity document is authentic to the greatest extent possible.
Also, digital signatures can be quickly verified as part of the document’s authenticity checks, using automatic and manual data extraction methods to ensure an optimum solution for each document type within the wide range of documents provided.
Depending on your business’s risk appetite, you can configure your verification system to ‘fallback’ to manual data extraction or to ‘always’ have a human check the data extraction, even if the automatic extraction was successful.
Conclusion
The global fraud loss costs businesses $1.5 trillion per year – almost as much as the entire GDP of Canada. Fraud has become so pervasive in the digital age that it seems we see fraudulent activities going on anywhere we look.
Every year, various companies are being accused of laundering money, bank employees are being found guilty of opening millions of fake accounts to meet sales quotas or CEOs, and misleading investors.
All these occurrences point to the importance of fraud detection and prevention.