In today’s digital world where transactions and dealings occur with greater anonymity than ever before, the need for robust identity verification methods are essential for businesses. No longer do we greet our customers and clients face-to-face with a handshake. Instead, interactions regularly take place behind a computer screen, sometimes with individuals who are continents apart.

While the internet offers businesses the benefits of a global marketplace, it also comes with certain risks, particularly when it comes to verifying the identity of potential clients and customers. One of the best ways to mitigate this risk is for businesses to invest in identity verification procedures, which reduce the risk of fraud, theft of sensitive data, and unauthorized access. In order to implement effective solutions, businesses should be aware of the following common identity verification mistakes that could be costing them.

Failure to Identity Business Requirements

Implementing identity verification measures may seem like a wise idea, however, failing to identify the specific needs they will serve a business can lead to inefficiencies, loss of custom, and other issues.

For example, a social media company typically has a much lower need to verify identity compared to a financial institution, where security and compliance are necessary. Without a clear understanding of this area, a business may choose the wrong solution, often adopting that used in an industry or sector that has very different needs.  To ensure identity verification methods align with their needs, businesses should carry out an assessment of their specific requirements and risks.

Falling Behind Technologically

As fraudsters continue to evolve their tactics, businesses need to stay ahead by adopting modern technologies in their identity verification processes. Traditional methods are no longer enough to protect against these increasingly sophisticated threats and advanced solutions like biometric authentication and artificial intelligence (AI) are needed to enhance security as well as streamline verification procedures.

For instance, AI-powered technologies such as liveness detection and face matching are becoming essential for businesses that require secure customer verification. However, protecting customer data is just as important for businesses as verifying identities.

To safeguard sensitive information, businesses also need to implement various measures like robust encryption protocols, secure data storage practices, and strict access controls. By focusing on both customer verification and data security, businesses can protect themselves from data breaches and maintain trust with their customers.

Neglecting User Experience

It’s essential that businesses strike the right balance between successfully verifying the identity of new customers but also ensuring they do not over-complicate the onboarding process. Overly complex or burdensome verification requirements can frustrate customers resulting in high drop-off rates and a poor user experience which can tarnish a business’ brand. Rather than using tools like an ID card scanner to quickly capture and validate customer identities, they might implement overly complex processes that they don’t actually need.

To avoid this problem, businesses should ensure their identity verification steps are simple to follow and quick for customers to execute, without any unnecessary requirements that can deter them from finishing the process.

By avoiding these common mistakes, businesses can ensure they put in place effective and efficient identity verification procedures that better serve their needs.