How Businesses Can Benefit from Identity Verification services
Identity verification is used where people have to present identification documents in order to confirm that the documents present are presented by the true owner. Many times people may carry along documents that they are not theirs and present them o either a bank or any other institution in pressmen that they are the owners of the papers. If institutions do not exercise caution they can lose a lot of money through such stolen identifications. 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 identification services are beneficial to social networking sites, internet forums, and many others. The facilities are used by wen opening new bank accounts and other financial 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 e-commerce, online gaming and social media it becomes essential to use the verification services. When it comes to financial institutions, the process of identity verification is governed by a statutea statute known as Know Your Customers. After the clients give their identification data to institutions; they are supposed to send the data to the identity verification service. After the institutions send the information, the services use that data against the private data to look for a match of the information 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. When the data is displayed to the identification service they find specific information like whether the customer is genuine. They will also want to find out whether the customer Id has been stolen. Other situations where the service will wish to o to create is whether the customer know whether their ID is stolen and being used by other persons.
After the institutions discovering that the people who are presenting the IDs are not the real owners, they will stop transacting with them and 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.