Predicted to cost the world $10.5 trillion annually by 2025, cybersecurity is becoming a major priority for businesses and customers alike as online crime and identity theft continue to rise.
As identity threats become more frequent, ever more sophisticated, and larger in scale traditional methods of authenticating an individual’s identity are becoming outdated calling for tougher security measures and more dependable ways of verifying they are who they say they are. This is particularly important in industries such as banking when it comes to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Technology is increasingly important in the fight to tackle cybercrime, and businesses are employing various means to keep their customers and employees protected from identity theft. Whether it is two-factor authentication or fingerprint recognition on smartphones, it is clear that the use of technology in identity authentication is here to stay.
This article will look into some of the ways technology is being used to counter fraudulent activity with regard to identity authentication.
Biometrics
Once seen as something out of a science fiction movie, biometrics have quietly slipped into everyday life, with biometric technology now commonly used in smart devices and home security systems through facial and fingerprint recognition.
The industry is forecasted to expand with the global biometric system market projected to grow to $65.3 billion by 2024, clearly demonstrating its key role in identity verification. As opposed to passwords and PINs which are frequently forgotten and susceptible to being stolen, biometrics can not be easily compromised, making it difficult for fraudsters to overcome.
Biometric technology also offers businesses the ease of being able to validate identity quickly and effectively without copious amounts of documentation, making the customer experience convenient.
ID Scanning
ID scanning is becoming a popular solution for many banks and online businesses to meet their identity verification requirements.
ID scanning software now allows information such as passports to be scanned from mobile devices and webcams, making it a convenient way to validate the identity of the customer. This replaces the need for information to be manually entered, saving time and costs for businesses. It also eliminates inaccurate data entries through human error, which costs businesses in the U.S. $3.1 trillion annually according to IBM.
Its versatility means that ID scanning can be put to use in many industries. For instance, the use of a driver license scanner in bars and clubs can check anyone entering an establishment to automatically detect minors. It can also be used in casinos to check individuals against banned lists and for contactless check-in at airports and hotels. In this way, the digital capture and authentication of an individual’s identity can offer a fast and reliable solution, no matter the industry,
The need for businesses to keep their data, employees, and customers safe will require ever-evolving ways of authenticating individuals from potential fraudsters. As highlighted in this article, technological efforts will continue to develop to meet those needs.