How Identity Verification Services Are Countering Prevalent Fraud Types?

Ever since the digital transformation, data breaches, cybercrimes, identity thefts, and online frauds have triggered every industry to look for improved combatting solutions. This is because the safety and privacy of customers’ personal information are of the prime interest of every industry whether digital or physical. However, digital crimes have turned the situations otherwise while making customers lose their trust in companies at the least. Hence they need improved identity verification of solutions to validate customers, stakeholders, and other affiliates.


In 2020, identity theft solely set a record of over $43 billion cases. These are predicted to increase to dermatic levels as businesses are adopting digital processing. Hence, it has become crucial for industries to ensure customers’ trust, and ensure a better experience and uplift status. To make all of this a reality, industries need encrypted and AI-powered services. There are various kinds of fraud and these services are robust in countering all of them.

Most Common Types of Fraud – Criminals Coming Up with Innovation

If industries are using digital ID verification solutions, criminals are also bringing innovations. With digitization embarking easy assistance, criminals are making things somewhat tricky. They are using various fraud types to exploit benefits in one way or the other and dodge verification. Some of these are enlisted underneath:

Identity Theft

Criminals are using several fraudulent techniques to carry out their malicious intentions. For instance, they use other customers’ identities to register on digital platforms. They take hold of the personal information and use all possible combinations of personal data to either the legit account or register as an imposter. This is how criminals manage to steal the financial and personal credentials of genuine customers. Therefore, to put gates in criminals’ way, industries need to employ a biometric identity verification system that will identify the imposter by simply running scans on the retina and facial traits. 

Account Takeover 

This type of fraud is the most prevalent in financial industries. In account takeover, criminals firstly gain access to the user’s information for instance username, password, and secret code. Secondly, they make fraudulent transactions while taking over the account. Lastly, the legit customer can not access the account or perform any transaction again. Worse comes worse, the account is further used for criminal schemes like money laundering, illegal transactions, and terrorism financing. Therefore, industries need to employ AI-backed identity verification services, as Shufti Pro News indicates, to restrict criminals from performing their activities and ensure they are not assisting any imposter.

Credit Card Fraud

Criminals are most attracted to credit cards therefore they either steal, overtake, or revoke legitimate credentials. Also, criminals use the information to apply for a fake account and avail credit or debit cards. Therefore, issuers need to adopt encrypted Identity verification to make sure they are assisting legit customers. 

Forged and Camouflaged Identities

Using forged, fake, or camouflage identities has always been the criminals’ favorite. They manipulate systems by creating fake accounts or availing medical benefits. Likewise, social media and e-commerce platforms face fake profiles with the criminal intent to harass customers or purchase age-oriented (AO) products and services. To counter these intentions, platforms should go to identity authentication solutions to ensure no unauthorized or imposters exploit the services.

Working Mechanism of Identity Verification – How Does it Place Gates in Criminals’ Way? 

Shufti Pro Funding makes it evident why Identity verification servicescompanies are relying on digital solutions. The identity verification services make customers undergo various steps for authenticating their identities and gating criminals at the registration stage. The steps involve:

  1. Collection of Information

The first step in the process is to collect personal information from the customers. While registering, the system presents a form, and end-users are required to fill in the asked data. It includes full name, proof of address, date of birth, and other details. 

  1. Ask the user to upload a picture

The second step involves govt-issued documents collection. The customers are asked to upload genuine and not older than three months, identity documents that serve as supporting evidence for the information previously entered. These include:

  • Identity Card
  • Driving License
  • Passport
  • Credit/debit Card Details
  • Utility Bills
  • Ownership or Rental Agreements 
  1. Verification of Information and Dispatching Results

After successful submission, the system runs scans and authenticates documents and provided information. For this, it extracts the required data using OCR technology. Finally, the system display results as verified or denied and later store them through API calls. 

To Bring Everything Together

ID verification services not only prevent synthetic identity frauds but also ensure that platforms are assisting legit customers. By using liveness detection and biometrics, industries can verify customers’ identities in seconds. Furthermore, industries can comply with KYC/AML regulations and restrict criminals from exploiting the services and platforms. 


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