Smart Reasons Why You Should Hire an Identity Verification Service Company

The occurrence of identity theft has grown alarmingly throughout the years. According to an article by the Identity Force, in 2017, almost 7% of consumers became victims of identity fraud. In 2018, exposed consumer records jumped by 126%, making identity theft as one of the most common consequences of data breaches.

Because of the increase in the occurrence of account takeovers and identity theft cases, businesses and companies need an efficient way to counteract fraud. Identity verification provides a solution to this predicament. 

If you are a business owner and currently looking for reliable ways to have robust fraud-prevention systems for your business, then you have come to the right place. Below are smart reasons why you should hire an identity verification service company.

Consumers prioritise security above everything else when it comes to making internet transactions, which is why they may opt not to continue with orders if they have a feeling that their personal information is unsafe. Fortunately, identity verification service companies offer a solution to this problem.

Businesses that have reliable verification processes also have secured websites, making their business free from data breaches. When consumers know that their information is safe, this means more transactions for your business.

The authorities take Know Your Customer (KYC) processes and anti-money laundering (AML) regulations seriously. This is why there are grave consequences, penalties, and expensive fines when a particular business has poor money-laundering controls. Hiring an identity verification service company will help you go through your business transactions and assess your customers. They will help you identify customers who have a risk of illegal activities such as having illegally obtained funds, illegitimate income sources, or money laundering, helping your business avoid government sanctions in the process.

According to an article by Shift Processing, in 2018, the incidence of credit card fraud increased by almost 19% and accounts for 35% of all identity theft fraud. If your business accepts credit card payments for online purchases, you can be a victim of credit card fraud, which can be costly for your company.

Malicious individuals use credit cards fraudulently to buy goods online. However, if the real owner of the credit card cancels these fraudulent transactions, your business is still liable to pay for the transaction fees. These are known as chargebacks.

By having a secure identity verification system, you are guarding your business against chargebacks since fraudulent credit card transactions will not occur. This is because verification systems thoroughly verify every consumer or customer that makes transactions on your website.

Identity verification, if done manually, will take up so much time and will increase your business operational costs. You would need to hire additional workers to manually check databases such as credit institutions, government agencies, and adverse media sources. Fortunately, Identity proofing no longer needs to be done manually.

Identity verification companies have automated systems that can perform faster and verify documents at a much shorter time frame. These verification systems are also more affordable compared to hiring a new workforce to do the job. Moreover, these systems are more efficient because it removes the variable of human error in the process.

From the reasons mentioned above, hiring an identity verification service company is, without a doubt, beneficial for your business. Having a reliable and trusted verification system is an essential component of any online business that will improve your customer’s user experience as well as reducing the financial risks of your company.