With the rapid growth in e-commerce, the online retail industry is expected to grow exponentially in the year 2021. In this technology fuelled landscape, retailers are all set up to provide online services and sales that are attracting consumers. At the same time, the sector becomes an opportunity provider for fraudsters who are in search of vulnerabilities in the system. Especially money launderers and terrorist financing groups misuse the legitimacy of a particular system to transfer their illicit funds across the globe.
According to the Office of National Statistics (ONS), retails fraud seemed to jump about 27% in last year. From July 2017 to June 2018, offenses among retailers and consumers raised to one million. ONS revealed that a large number of retailers and e-commerce businesses are targeted by online fraudsters. A reason could be the more struggle of online businesses towards customer experience rather than on security.
Another reason for the growing retail industry frauds is the interest of people in spending time and money in online shopping. Endless golden opportunities are provided in this session for fraudsters which they avail using different and malevolent tricks. A large number of frauds take place as a result if unauthorized access, which means that online retailers should know who they are serving. Just like physical property sale and its formalities of identity verification, online document verification should be done. Verifying identity using official documents, id cards, and biometric verification helps deter the risks of fraud.
Customer Verification For Retail Fraud Prevention
Prevention of e-commerce fraud while maintaining a balance between system security and customer experience is a trivial task. This can be gracefully handled through a document verification solution that is performed online without disrupting the user onboarding process. With a frustrating online identity verification process, the user abandonment rate gets higher and for online retailers, it is not less than a nightmare. They spend investments in streamlining the user experience and overlook security aspects. But, both these can be achieved by integrating the document verification and other required identity verification API. These help in easy verification of onboarding identities that ultimately serve the goal of combatting online fraud.
How does document verification work?
In the e-commerce industry, identity verification has become vital to deter a number of frauds which include identity theft, account takeover, and payment scams. Document verification help verifies each customer through id card or official documents. This would majorly contribute to combat money laundering and terrorist financing that is facilitated through the retail industry.
During the verification process, the online user needs to upload official documents to prove the real identity. Document verification API would run spoofing and photoshopped image checks to make sure that the uploaded document does not tamper in any way. Using OCR technology, the document template is analyzed which extracts the information from fields and verify it according to the information provided by the user. Document verification is a better option when it comes to age verification for platforms that sell age-restricted products. Hence, fulfilling the compliance requirements with a streamlined online document solution.
To conclude, document verification and other identity verification methods play an important role to deter online frauds. These help in complying with the regulatory requirements as well as a better user experience. Not only this, embedded age verification checks help in prohibiting minors from accessing age-restricted products. It can be done through online document verification or id card checks to verify the age of online customers and provide services. This definitely contributes to the reputation of a legitimate business that is eager to maintain a balance between the customer experience and the online security perspective at the same time.