What is identity fraud? This criminal offence happens when an individual uses another person’s data to pass as their own without the authority to do so. Many organisations hold personally identifiable information about us in today’s world. As such, a data breach can lead to severe consequences for customers and the company having the data.
Criminals, acting on the dark web, can sell fake identification based on personally identifiable information from real IDs, so organisations must carry out fraud prevention processes as laid out in financial regulation. Failure to do so can result in significant fines and legal action.
To prevent financial loss from fraudsters, identity checks can identify the person attempting to use the services so that criminals cannot use false information to open new accounts, for example. For more information on KNOW YOUR CUSTOMER regulations, contact w2globaldata.com/regulatory-compliance-solutions-and-software/know-your-customer/
Identity checks must be quick and efficient to avoid slowing the user experience. Verification must be relatively inexpensive. The user interface and experience must be accessible and straightforward for both the organisation and the customer. This is even more valuable now as we live in an increasingly digital age.
For financial organisations, identity checks can mean less chance of loss from fraud. Effective AML software can flag suspicious activity, verify a person’s identity, and prevent access to accounts when discrepancies are spotted. Moving forward, the process of identity verification becoming digital will be crucial for 21st-century businesses.