How Identity Verification Can Help Businesses Not to Lose Money
Identity verification is a process where businesses verify the identifications presented to them by their customers. Many times people may carry along documents that they are not theirs and present them o either a bank or any other institution in pressmen that they are the owners of the papers. If institutions do not exercise caution they can lose a lot of money through such stolen identifications. Those who want to steal cans the stolen IDs to open minds so that the can use them to move from the rightful owners to themselves through unfaithful means.
There is, therefore, a need for various institutions to ensure that they verify the Identifications presented to them by various clients. Identification verification is either through person to person or through online services. The identification services are beneficial to social networking sites, internet forums, and many others. The services become very necessary especially when opening new bank or financial institutions accounts.
Companies are supposed to comply with Anti-Money Laundering and Know Your Customer rules in their day to day operations to curb theft. With the growing use of online gaming, , and social media, it is evident that the identification verification is necessary in all the operation in these sectors. When it comes to financial institutions, the process of identity verification is governed by a statutea statute known as Know Your Customers. After the clients give their identification data to institutions; they are supposed to send the data to the identity verification service. The services will then check the data against the private data to see if they match with what is provided.
There is also an option of asking knowledge-based authentication questions in order to establish whether the person is presenting a valid identification. Some of the information that the service will be interested in finding out is whether the customer is valid. They will also want to establish whether the customer ID has been taken. The assistance will also want to know whether the actual owner of the Id is aware that someone else is using their Id for financial purposes.
When institutions discover that they are dealing with the wrong people, they will not engage in transactions with the people who are using stolen IDs, and instead, they report them to the authorities. That is why institutions need the identity verification process so that they can tell when they are dealing with the people who can swindle a lot of money from them. All the Financial Institutions are required to ensure that they apply the Know Your Customer Policy when they are opening new accounts to be sure they are dealing with trustworthy clients.