Tech & Computer

How an Identity Verification Platform Is the Solution to Fraud and Compliance Issues

Identity verification is a critical aspect of modern society. With the rise in digital transactions and an increase in fraudulent activity, businesses and consumers alike are looking for more ways to protect themselves online. One solution that can help improve identity verification processes is through a platform that combines multiple sources of data into one application. This article will explore the benefits of using an identity verification platform, including how it can solve common industry problems such as fraud and compliance issues.

Dirty data

Dirty data is a pretty terrible thing. It can wreak havoc on your business, making it difficult for you to achieve your goals and stay compliant with regulations. It leads to wasted time and money spent on fixing mistakes made by employees who shouldn’t have had access to certain information in the first place. This can also lead to lost sales opportunities when customers don’t trust how reliable a company is.

If there are not enough checks on access rights within an organization, then potentially dangerous information could end up being leaked outside of the organization or even stolen.

Unreliable processes

Have you ever had to deal with the following scenario? You’re in the middle of a transaction, and the person you are transacting with asks for your social security number or other personal information. Instead of just giving them this information, you pause and ask them why they need it. They say that they need it to verify your identity.

When pressed further, they admit that this information is not necessary for the transaction at hand but rather part of an ongoing effort on their part to comply with regulations or best practices (or both). You then have to decide whether or not to provide this data—which can sometimes be very personal—just so that you can complete this one small task today.

Unclear compliance

Compliance is a legal requirement, but it’s also a way to protect consumers. If you don’t comply with regulations, you can be at risk of fines.

Compliance is hard to implement because many rules and regulations apply specifically to your industry because there might always be new laws being introduced every year which means that existing ones will need updating as well – this could take months depending on how much work needs to be done on them before they’re ready for release again.

Low productivity

As the world becomes more and more automated, it’s important to understand how systems can be improved. Especially for large companies where every minute spent on manual tasks is a wasted minute.

For example, let’s look at how much time employees spend on data entry:

  • An average employee spends 8 hours each day working on a computer (a total of 240 hours per year). That means they are spending 1/3 of their day typing and clicking.
  • As the company grows, so do its business operations—which means more employees need access to sensitive information stored in databases or other systems (like a CRM). And while these staff members may have been adequately vetted when they were hired, as time goes by it gets harder and harder to keep track if they still qualify for access based on compliance requirements.

Stolen identities

Identity theft is a major problem in the United States, and it’s only getting worse. Stolen identities can be used to commit fraud by accessing bank accounts or credit cards; they can also be used as a form of payment for illegal goods and services such as drugs.

If you think about it from an optimistic point-of-view: if someone steals your identity for their benefit, then all you have lost is time spent dealing with paperwork and the inconvenience and stress associated with having your information compromised. However this is not always the case; sometimes when someone steals another person’s identity they take more than just their name—they take their entire life.

Conclusion

While it’s unlikely that many startups will take up this mantle, with all of the regulatory pressure mounting we will see more established companies pursuing identity verification platforms in light of the current climate.

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