Getting Down To Basics with Companies

Ways in Which Identity Verification Can Save Businesses from Losing Money

Identity verification is a process where businesses verify the identifications presented to them by their customers. Many times people who want to cheat can present stolen documents to individual institutions in presence that they are actual owners of the papers. If the institutions dealing with such unfaithful customers are not careful, they can end up losing billions of dollars through such presence. Some people use stolen IDs from people who have a lot of money and use them to open accounts that they can transfer the money later from the rightful owners.

There is, therefore, a need for various institutions to ensure that they verify the Identifications presented to them by various clients. You can either verify identification on person to person or use online methods to help you in verification. The services mainly help those who are involved in social networking sites, internet forums among others. The services become very necessary especially when opening new bank or financial institutions accounts.

It is required of companies to ensure that they comply to Anti-Money Laundering and Know Your Customer rues in order to ensure that they do not encourage some of these bad practices from their clients. With the increasing use of social media, online gaming and e-commerce among others, the use of identification verification services is very vital. When it comes to financial institutions the identification verification is demanded by a regulation known as Know Your Customer. When clients present their identification the data is sent 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.

At the same time knowledge-based authentication questions can be asked the person presenting the documents just to ensure that the person is the true owner of the Identification document held. The service will want to know whether the customer presenting the document is authentic. They will also want to find out whether the customer Id has been stolen. 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. Therefore the identification verification process is a fundamental process to many companies as they prevent them from losing money. All financial institutions are supped to use the Know Your Customer Process before they open any accounts from any clients.

Learning The “Secrets” of Identity

Getting Down To Basics with Companies