Identity theft is becoming one of the most threatening phenomena due to the consequences it brings. Criminals use legit customers’ credentials to illegally reap benefits and drive reputational damages to the businesses. They commit identity fraud in various ways making it difficult for industries to identify them through manual verification. This way they easily steer clear of the identity verification process.
This calls for industries to incorporate better onboarding mechanisms to assist legit customers and prevent fraudulent attempts. The AI-powered identity verification services help businesses identify all types of fraud in minimal type. These solutions pace up the verification process by using encrypted technologies like OCR. The blog covers types of identity fraud and how digital ID verification eliminates them.
Diverse Types of Identity Theft – A Detailed Overview
The cases of identity fraud are dramatically increasing due to the availability of digital onboarding methods. Criminals use methods like document forgery, spoofing attacks, and deep fakes to bypass the identity authentication process and reap illegitimate benefits. As of 2021, customers lost over $43 billion to identity theft. This is because criminals use different software such as 2D/3D masks and voice changers to act as imposters. As per Shufti Pro News, this helps them onboard platforms easily and they can apply for financial gains, avail medical care, or other benefits.
Therefore, businesses need to employ better and more effective identity verification solutions. The AI-driven tools provide accurate verification at less cost. It further identifies customers by scanning their faces and detecting liveness, which eliminates the chances of fraudulent attempts. The section contains types of identity theft that businesses need to stay a step ahead of.
Patient Identity Theft
Similar to the rest of other sectors, healthcare also faces identity fraud, however, it may not be a tangible type. Fraudsters use the information from legit patient records and trick the ID verification process. They use the details falsely to claim insurance, make payments for their treatments, or commit prescription fraud. Furthermore, criminals commit data breaches and put the medical records on sale on the dark web. This helps them earn a fortune.
However, with an effective identity theft protection mechanism in place, medicare centres can minimize the chances of fraudulent attempts. The AI-powered identity authentication solutions not only validate patients but also keep their records secure. Furthermore, healthcare providers can perform identity verification in real-time and report suspiciousness to respective regulatory authorities.
Identity Fraud in Finance Sector
Financial institutions are also facing a rise in identity fraud. Criminals use the information of other persons to either open an account or apply for benefits. Furthermore, criminals use the credit/debit card details of legit customers to make payments at e-stores. Worse comes worse, criminals use fake identities to convert their ill-gotten funds into white money and fund terrorism.
Therefore, banks, businesses and other financial institutions need to incorporate better ID verification services to identify criminal attempts. The AI-powered identity verification services use different ways to identify customers. For instance, document validation and biometric verification. This way financial institutions can onboard legitimate customers, shield databases, and comply with regulatory standards.
Synthetic Identity Fraud
Synthetic identity fraud is the fastest-growing type of crime. In this, the criminals use information like names, birthdates, social security numbers, and proof of address of legitimate customers. They then blend and change it to create a fake identity, escape the identity verification process, and reap financial as well as various other benefits.
Therefore, sectors like healthcare, finance, and e-commerce should take precautionary measures to restrict these imposters’ access. This is because the criminals make minor changes and easily dodge the verification process. The manual verification methods are not reliable in this case as they are less efficient and involve more chances of errors. However, Shufti Pro Funding indicates that the AI-powered ID verification solutions provide multi-layer identification that is tough to trick.
Identity Fraud in Law Enforcement Sector
Criminals often use fake or stolen information to dodge identity verification services. This is the common type of fraud law enforcement agencies face. At the time of arrest, criminals provide fake information that puts the clean records of legit citizens at stake. Similarly, criminals use fake or stolen identities such as ID cards and driver’s licenses to show to police and easily escape the consequences.
Therefore, law enforcement agencies and police departments need to employ authentic ID verification checks to ensure criminals are escaping. The AI-powered solutions enable law enforcement bodies to access global databases that provide an additional layer to the verification process. Furthermore, their identity theft protection tools readily verify criminals by cross-matching the information they provide. They also carry out background checks to make sure customers do not hold criminal records.
In the End
Where sectors are facing numerous challenges in identifying criminals, identity verification services help them ensure legit customers are accessing the services. These solutions provide accurate results and businesses can store the verified identity details in their database for future verification. Therefore, industries should incorporate robust identity authentication solutions to draw a line between criminals and legit customers.