The arrival of the COVID-19 pandemic has led most businesses to shift their operations online. From restaurants to clothing outlets, almost every sector has started operating their business through online channels. This rapid shift prompted imposters to attack online websites and breach the available customer records for illegal usage. In the past, companies didn’t focus on verifying the customer’s identity, which is why 43% of online merchants faced phishing attacks in the year 2022. The high risk of phishing attacks prompted online retailers to invest in digital identity checkers to combat this risk and ensure a smooth customer experience.
A Brief Introduction to Digital Identity Checkers
Digital identity checkers are tools used to verify a customer’s identity using digital verification methods. Digital ID checks verify the authenticity of customers by using advanced verification tools and services. Identity checks online prompt companies to collect the customer’s personal information and compare it to their government-issued identity cards and passports using digital methods. Companies can incorporate biometric verification, digital footprinting, and multi-factor authentication to verify customer legitimacy digitally.
After thorough research, the customer’s profiles are detected to ensure they do not pose a risk to the company’s operations. The e-commerce sector can incorporate digital identity checkers to ensure that only authorized customers are making transactions with them. It protects online merchants from external threats of phishing attacks and illicit monetary transactions because it will only provide access to online products and services after careful customer analysis.
What are the Use Cases of Digital Identity Checkers in the E-Commerce Industry?
The e-commerce industry can leverage digital identity checks to enhance compliance with regulations and ensure secure customer onboarding. Identity checks online reduce the cost of both buyer and retailer as identities can be verified through online channels. Digital ID checkers can be used in the e-commerce sector to enhance the following services:
- Smooth Customer Registration: Digital identity verification authenticates the users through multi-factor authentication. The e-commerce platform sends a two-factor authentication code to verify the customer. It ensures reliability during the registration and onboarding processes. Digital ID checks ensure that the customers are real entities and are not involved in unauthorized activities.
- Combating Unauthorized Access: Online identity checks are crucial in verifying whether the customer’s accounts are legal and under their personal use. Authentication of identity verifies that the customer’s account is not taken over by illicit entities and that they do not pose high-risk profiles.
- Regulatory Compliance: E-commerce platforms are required to comply with the regulations assigned by the government. They must comply with the KYC services to protect their products and services from money laundering and unauthorized external use. By following these rules, online retailers can combat the repercussions of not complying with KYC regulations.
- Enhanced Customer Credibility: Digital identity checkers enhance the customer’s overall experience. Customers are not required to fill out lengthy manual forms, which can take time and effort. Instead, the verification is done digitally, which is convenient for the customers and the retailers. It enhances the customer’s onboarding process as they are unlikely to leave a website because of simplified and accurate identity verification.
How Advanced Identity Verification Tools Protect E-Commerce Services?
The e-commerce sector can incorporate digital identity verification tools to elevate its business operations. These tools can optimize business operations by preventing illicit entities from making unauthorized transactions. The digital identity verification checks provide advanced security to online businesses and protect them from the reach of imposters.
- Biometric Verification: The e-commerce industry must verify their buyer’s identity through biometrics. Biometric verification is an advanced method of detecting risky profiles. Online retailers can scan customer’s fingerprints to authenticate their identity. The fingerprints are detected and compared with their official documents, mitigating the risk of fraud. Online businesses can also verify their customers through facial recognition and liveness detection. The buyers are prompted to join a video call through which the examiner analyzes their unique facial characteristics. Examiners can ask the buyers to perform specific actions, which may include head movement and eye blinking.
- Multi-Factor Authentication: Online retailers can verify customer’s authenticity by sending them a two-factor authentication and one-time password. Customers enter this unique code to verify that they are a real entity. These passcodes can be sent via email and SMS, and they are later used to verify their legitimacy.
Final Thoughts
Digital identity checkers are essential for the e-commerce sector as they simplify the customer’s registration and onboarding process. These services protect online retailers from unauthorized access by imposters and allow only legal users to access the website and make legitimate transactions. Digital ID checks reduce the operational costs of businesses and customers because verification is conducted through online channels. This further improves the overall experience of customers and retailers. They can also experience secured transactions, which reduces the risk of illegal activities.
