Every business is responsible by law to perform identity validation during customer onboarding. The article discusses top-notch verification document trends that each corporation must look out for.
Businesses all across the world are making significant investments in identity verification and fraud protection solutions. Due to the pandemic, consumers have quickly turned to using digital methods for practically everything. Customers need data security, information privacy, and a high-class experience at the same time. Additionally, it is challenging for organizations to assure compliance and extremely precise document validation results due to the dynamic regulatory environment.
How is the Verification of Document Evolving in 2022?
Identity verification documents are required by every company during customer onboarding in every part of the world. The article is about the top-notch identity verification document trends that every company should be aware of.
IDV Adoption in the Crypto Industry Cascade
Globally, large audiences are now embracing virtual assets but it opens the door for ID theft, money laundering, and financing of terrorism. In order to combat financial crimes, regulatory organizations are now implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) rules in the sector. Other watchdogs may implement more stringent verification document regulations in an effort to reduce fraud in the virtual asset market.
Robust Document Verification is Required for NFTs
Non-Fungible Tokens (NFTs) are expected to become more widely used in the upcoming year, according to analysts. But there was a cost to this widespread adoption. Fraudsters have devised a variety of methods for their illicit activity. Non-fungible tokens are anonymous, and there are either no laws at all or very few of them to deter unscrupulous behavior. In the end, those responsible are counting on the flaws to steal identities and launder money for other illegal operations.
CBDCs will Require ID Confirmation
Controlling the new currency form was the main reason Central Bank Digital Currencies (CBDCs) became popular for businesses. Through a telecommunications provider, crimes are committed. Although CBDCs are anticipated to replace other payment methods, each nation implementing digital currency ensures CDD AML compliance to ensure identity verification.
Rigid IDV System Needed for Real Estate
Financial crooks have been converting their dark money to white through the real estate market because of regulatory flaws. According to recent studies from watchdog groups in Australia and Canada, fraud in the real estate industry is on the rise. Brokers must now adhere to strict guidelines for identity verification documents and background checks.
More ID Frauds, more Fintech Implementation
There are more prospects in the fintech sector as a result of the pandemic-driven digitization. Unfortunately, the threat of illegal activity is growing quickly, so the fintech industry urgently needs a reliable verification document system that can guarantee quick account activation for only authorized people.
Massive Data Breach Risks Increase Identity Theft
The highest number of data breaches necessitates that enterprises avoid fraud. It will be difficult for corporations to stop scammers’ fraud activities because the compromised data will be utilized for identity theft, account takeover fraud, new account fraud, and synthetic ID theft.
Synthetic IDs to Be Riskier
Synthetic identities are simple for criminals to avail such document checks to get beyond fake identity tools with important information of customer loss due to data breaches.
A solution that can guarantee seamless passenger onboarding required by new travel regulations for Covid-free passenger onboarding. Due to this, the travel and hospitality industries demand a document validation solution that can both confirm individuals’ identities and guarantee the validity of their travel documents bearing vaccinations.
Ongoing KYC to Boost Interest
Fighting fraud starts with confirming identities when opening accounts. It’s critical to monitor customer activity to stay one step ahead of fraudsters. Businesses can keep up-to-date consumer risk profiles via continuing KYC. A number of fraud cases where existing accounts utilized to launder money by money mules came to light also referred to as permanent KYC.
Document Check to Become Touchless
Identity verification will follow suit with the new touchless rules brought on by the epidemic. The future trend in identity verification documents for travelers will be NFC-based. Simply tapping a biometric ID which is used for NFC verification with an NFC-enabled device.
A verification document is a must given the circumstances at hand. Every industry worldwide, including real estate, fintech, and travel, will look for more dependable and precise identity verification processes. Additionally, the KYC/AML compliance landscape is evolving, necessitating the incorporation of a robust framework by firms for efficient compliance.
Contrarily, identity fraud evolves and the harm posed by fake IDs will grow, particularly in light of the recent data breaches. Businesses can comply with the varying rules and avoid identity fraud with an identity verification system that is dependable, quick, accurate, and AI-backed.