Whether you’re looking to open a bank account, log into a secure platform, or buy something online (by providing your credit card information), you’ll need online identity verification for safety purposes.

First up, here’s a brief look into why it’s a must-have procedure for businesses and individuals:

To Prevent Fraud

By document scans and face recognition apps, business organisations and marketplaces can verify whether a customer is using a stolen identity or not.

In any e-commerce platform, or any platform where financial transactions take place, online identity verification helps to nip fraudulent activities like fund embezzlement with fake accounts in the bud.

To Comply With Regulations

In Europe, GDPR laws require businesses to handle data strictly for the protection of the citizens. Similarly, businesses and organizations need to adhere to KYC, AML, etc. regulations to ensure that they are providing financial services to real people.

If the parent organisations fail to comply with these state-approved regulations, they will need to pay a hefty penalty in most cases. Hence, implementation of online identity verification helps them to cover these regulations & handle customer data safely. 

To Gain the Trust Of Customers

The digital world is fast-paced and dynamic. So, while signing in to a new platform, customers expect a quick and hassle-free verification process so that they can complete their work as fast as possible.

Additionally, a secure online identity verification process helps to foster the reputation of the platform. Alternatively, if there are multiple reports of fraudulent activities with fake accounts and weak links in the security system, the reputation of the business platform takes a hit which eventually lowers the rate of customer engagement.

And here’s how the citizens of the state can reap the benefits of online identity verification:

Prevent Unauthorized Logins

By verifying your identity online and by enabling multi-factor authentication, you can prevent unauthorized access to your accounts.

This helps you in more ways than one. Firstly, it helps business platforms understand that you are, in fact, a real person looking to make a real purchase. And secondly, it prevents scammers from committing fraudulent activities using your identity. 

Protect Private Information

Online identity verification helps to protect your private information so that no one can access them without your knowledge. Signing into fishy websites where no verification is needed may seem tempting.

But the truth is that – in exchange, these fishy websites get to access your data behind your back and sell it off without your consent. And that’s why, online identity verification works both ways. In addition to individual verification, it promotes the reliability of business platforms as well.