How is Identity Verification Solution The Key To Fraud Prevention in 2025?

1. BOOK A DEMO How is Identity Verification Solution The Key To Fraud Prevention in 2025? Posted on January 7, 2025 by Jay Raol Why is identity verification so crucial for businesses? Digital transactions and client onboarding are rapidly growing and trending all around the world, although financial fraud and identity fraud also exist. Digitalization in businesses also increases the chances of financial crimes, and fraudsters target vulnerable companies and organizations that don’t have robust security systems to identify illegitimate identities. In this case, the identity identification and verification solution is the defense mechanism of the financial and non- financial industries to protect from financial criminals. Financial regulators also change their regulations in the efforts to prevent money laundering, terrorism financing, tax evasion and other financial crimes. Identity fraud and identity theft cases are also increasing in the digital business world, and following some stats are enough to give an alarm for everyone. Identity Theft:

2. According to the Motley Fool Money report, 842,000 cases of identity theft have been reported in the first three quarters of 2024 and exceeded the cases reported in 2023. These identity thefts come in many forms, but credit card fraud is the most common among them, and 327,000 cases of credit card fraud were reported in the third quarter of 2024. Global Financial Crime: Nasdaq’s Global Financial Crime Report says that Fraud scams and bank fraud schemes globally resulted in projected losses of $485.6 billion in 2023. Payments Fraud Incidents: AFP Online’s survey report revealed that 80% of organizations were victims of payment fraud attacks or attempts in 2023. Fraud Losses in Financial Institutions: In 2023, Nearly 60% of banks, fintechs, and credit unions reported direct fraud losses exceeding $500,000, according to the Fraud Benchmark Report of Alloy. These above financial frauds tell us why identity verification solutions are so crucial for every small, medium and large business. It’s not only the compliance need but also a strategic move that assists in evaluating business risk by identifying illegitimate identities globally. How Identity Verification Solution(IVS) Helps Businesses? Identity Verification Solution is a variety of technologies and processes which aim to confirm whether the user or an entity is a valid participant of a financial transaction. Comprehensive identity verification solutions include various types of verification like ID verification, document verification, age verification, KYC verification, video KYC verification, AML verification, business verification, transaction monitoring, social verification, PEP and sanction list verification. It depends upon the business needs what type of identity verification is required to ensure regulatory compliance and risk evaluation. Banks and financial institutes require KYC solutions to authenticate the identities of their customers and a fast onboarding process. For high-risk clients, Banks use an AML solution to evaluate business risk and complete an enhanced due diligence process. There are countries, including Germany, the UK, Canada, France, Malaysia, Portugal, Estonia, Greece, Lithuania, and others that use video KYC solutions to onboard their customers. Insurance companies prefer KYC solutions to identify and verify the identity of the customer during the onboarding process and even during the claiming process by the policyholders. Video KYC is also in trend in the insurance industry for a more secure identity verification method. Fintech companies prefer digital KYC solutions to onboard their customers and ensure regulatory compliance. It helps to connect with genuine clients and secure payment processing quickly. Cryptocurrency is a digital currency-based financial business where no Government, regulatory or bank is involved to control it. KYC solutions ensure legitimate business identities and AML solutions help to check the background of the crypto clients for involvement in illegal activities. Business verification also ensures that they are doing crypto exchange transactions with a legal company. Telecommunication: The Telecom industry prefers ID verification solutions to authenticate identities. ID verification includes live image capturing that helps telecom businesses match the face. Online Gaming platforms prefer age verification solutions to identify underage customers and prevent financial fraud. Age verification solutions help to protect minors and maintain a fraudless reputation for gaming companies in the competitive market.

3. Real Estate businesses prefer document verification solutions to buy and sell properties. It assists in recognizing the genuine property owner and mitigating the risk of fraud. Real estate agents, brokers and dealers authenticate identities before selling properties and avoid legal procedures. Forex is a financial business where buying, selling and exchanging currencies are the operational processes. KYC and AML solutionsare required to authenticate identities and secure transactions. There are other businesses globally where identity verification matters a lot to build trust and business decisions. Therefore, implementing robust identity verification services is paramount for financial and non-financial companies for IDV checks. It works as a protection shield against money launderers, fraudsters and financial criminals. Conclusion: In 2025, the battle against financial fraud requires a proactive and comprehensive approach. A comprehensive identity verification solution plays a vital role for all types of businesses. For companies and organizations that are operating their business globally, an identity verification system is significant to keep compliant and secure business transactions. Artificial intelligence and a machine learning algorithm-based identity verification API or software assist in authenticating user and business identities quickly and accurately. It mitigates the chance of financial fraud and ensures a fraud-proof reputation in the competitive market. Investing in advanced technology will protect your business from the latest fraud techniques in the digital age, where financial crimes are on the rise. Advanced technology-based identity verification solutions keep ahead of the curve and build trust for new clients and investors. By choosing a trusted and reliable identity verification company, build a robust security system that assists in identifying identity fraud and doesn’t allow illegitimate identities to access confidential data.