Identity verification services are provided by many businesses these days. Investing in these AI-based identity verification services is a huge decision as most of the time these service providers are online entities and charge a lot but the huge costs do not provide for not using an identity verification. According to a report, there were 3 million identity theft reports filled in 2018 and most of these stolen identities were used to defraud businesses. Also, businesses around the world are bound to comply with KYC, GDPR and other compliances. Use of Know Your Customer(KYC) Verification service has become inevitable for the businesses.
Checklist for the best identity verification service:
Regulatory Compliances:
The service provider must be aware of the regulatory compliances in the region where your company is operating and also of the regions where your prospective and current customers are. For example, there would be new compliance named California consumer piracy act, in effect from 2020. Not only that the service provider should himself be compliant with those regulations.
Updated databases:
The databases of the identity verification service provider should be regularly updated. For example, the money launderers and PEP (Politically Exposed People) lists should be updated regularly to reduce the threat of wrong identity verification.
Required certifications:
The service provider must have good certifications from the institutions related to data protection, IT infrastructure, and other business operations. Some must-haves that increase the credibility of an identity verification service provider are PCI, GDPR, and cyber essentials certification.
An effective system:
The service provider must provide a user-friendly product. For example, the data entry formats (like date) should match the default data entry formats used in the end user’s region. The research found that 42% of Millenials said that they would conduct more online transactions if there were fewer security hurdles. Hence it is necessary the added layer of security should decrease the risk of loss and not the customer value of the company.
AI and HI based verification solutions:
The service provider must provide an integrated system that would include Artificial Intelligence(AI) and Human Intelligence (HI) based solutions according to the business needs of the customer. Relying only on AI or only on HI makes the operations more risk-prone.
Cost-effective :
Lastly, the service provider must provide flexible prices matching your cost plan. Mostly the identity verification service providers provide the services at a very huge price.
An impenetrable system and secure databases:
In the past, many huge scams have surfaced raising questions on the credibility of the systems of huge organizations. Equifax in 2018 faced a major data breach where the data of 143 Million US customers and 400,000 UK customers were compromised. The service provider might be honest with you but its system might not be as impenetrable as it portrays.
Choosing the Identity verification service provider is a tiring task and also very risky as there are a number of service provider online and the scammer are definitely hiding among them. This checklist will help the businesses to choose wisely the best service provider among the ordinary.
