Playing Safe with Identity Fraud: Reasons to Trust AI

Illustration by Shakuro Graphics on dribbble

If your business requires any identity verification or is particularly susceptible to fraud, it’s crucial to have an airtight system that protects your reputation and ensures compliance.

This concept is a complex undertaking with many moving parts.

Not long ago, identity verification was particularly cumbersome and time-consuming, but with the rise of artificial intelligence technology, there are ways to cut downtime and cost drastically.

As with any new technology, it’s understandable, if not prudent, to approach it with a degree of skepticism.

If you’re wondering if you should use today’s Know Your Customer (KYC) technology for your business, but are not sure if it’s the right move for you, keep reading.

This guide explores the benefits of upgrading your business when it comes to identity verification.

More specifically, why AI is something you should trust and embrace — it’s not something to fear.

Know Your Customer (KYC) technological capabilities

AI is transforming business, creating immense value.

For example, Know Your Customer (KYC) platforms utilize machine learning and artificial intelligence to verify customer identity.

There are several distinct advantages to using this technology, especially concerning fraud prevention.

An added layer of security

Since COVID-19 hit, the FBI has reported a 300% increase in reported cybercrime.

What’s more, cybersecurity mistakes can be attributed to 95% human error. Another alarming statistic is that 80–90% of people logging into eCommerce sites are hackers using stolen information.

If your customer’s data is hacked or has experienced fraud, it’s no secret that these instances could have untold damages down the road.

By mitigating the chances of human error ever happening and putting in place the best technology to help prevent fraud, your business is positioned for higher security in an age where cyber-attacks are likely to become the rule and not an exception.

Despite the daunting task of integrating new technology, this is just one of the ways AI will benefit your business more than hurt it.

Machine Learning & AI can tell the difference between real & fake IDs

AI and machine learning can scan identifying documents, such as driver’s licenses or government IDs.

AI scans the document for identifying authenticity factors such as micro text and other embedded security features.

Even more impressive, this same technology can be utilized in biometric information such as fingerprinting and facial recognition.

Better customer experience

AI can deliver a superior experience for your customers.

Instead of going through time-consuming and frustrating paperwork and processes, AI can perform KYC due diligence quickly and accurately.

Gone are the days when customers are asked to trade convenience for security, leaving them with higher satisfaction and businesses with higher retention rates.

The added plus is that both customers and companies are better protected against fraud and face a much lower risk of data breaches.

If your customers have questions about how the process works and whether their information will be safe, you can always create an explainer video to answer frequently asked questions.

Better financial security for your business & customers

Though most people are accustomed to making transactions online, the rising concern of cyber-attacks and data breaches is causing consumers to look for more sophisticated and airtight ways to make their transactions.

AI is starting to be an accepted and integrated solution to those types of problems.

Conversely, Know Your Customer (KYC) technology allows banks and other financial institutions to run reports on their customers to identify behaviors and activities that could denote fraudulent activity.

This technology empowers financial institutions to stay in compliance, preventing trouble down the road.

Different machine learning and artificial intelligence solutions have been explored with more intensity.

This increased interest is especially the case following COVID, as more transactions continue to move online.

The capability to perform speedy, secure, and significant transactions will become an expectation of the general public.

Best-in-class marketing is key to connecting with your ideal customer. Still, as a business owner, your responsibility is to continue to stay cutting edge in every way that you can.

With the world changing and consumers’ expectations changing along with it, integrating AI and machine learning into your Know Your Customer experience helps you stand out in your marketplace.

Skepticism is fine and normal at best, but becoming an early adopter and making prudent decisions will practically build a robust marketing campaign all on its own.

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