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Business entities are increasingly adopting the online means of operation. This has opened up new doors for the cybercriminal to take advantage of the vulnerable people. The COVID-19 pandemic has worsened the current citation of the world. FTC (Federal Trade Commission) has estimated that up to USD 13.4 million has been lost due to the scams during the first few months of the pandemic. Protecting the identity of the individual has become even more important because of this. The present era is of technological advancements and digital identity authentication. AI (Artificial intelligence) integrated with biometric authentication allows the business entities to enjoy a simplified process of the added security.
Continue reading this blog to find out how business organizations can avoid identity fraud through AI.
The Present Situation
Ever since the start of the COVID-19 pandemic, businesses and their customers have to shift to the digital process for many things. This has resulted in the huge development of data which fuelled cybercrimes and identity theft. Identity thieves impersonate someone and acquire their benefits and resources. This can cause business organizations a lot of money. In order to secure the identities, the businesses must comply with the security and identity verification regulations.
For instance, fraudsters can use deepface technology to bypass the identity verification system with a stolen personality as this technology has come a long way. This technology even allows the impersonation of famous or influential people. Solutions based on AI can help to fight fraud by detecting whether something has been tampered with or the fake video has been shown to the system or not. With the AI-powered solution, the business organization can capture the disinformation and verify that the person really is who they pretend to be.
The Industries Facing Threat of Identity Theft
Let’s discuss some of the industries that are vulnerable to fraudsters and why they should implement AI solutions to fight these crimes.
E-commerce operating online cannot physically verify the identity of the individual and it is easier for the fraudster to trick the system online. With stolen credentials, they can purchase products online. The retailer would be unaware of the scam and would deliver the product. The victim will ask the bank to reverse their transaction after they have realized that their identity has been stolen. The bank reverses the payment and the retailer has left without the money as well as the product. If they complain to authorities, they will be fined for not properly verifying their customer.
- Banking and Financial Service Provider
The fraudsters use stolen identities to open up different bank accounts. Then these accounts are used to deposit money in the bank in small amounts for money laundering. If a small amount of money is being deposited in the bank, then no attention is brought to it and no investigation is carried out to trace the money back to the crime.
- Educational Sector
Identity theft is common in the education sector ever since the trend of online classes has started. Now the COVID-19 pandemic has pushed the education sector to operate through online portals and online video connecting classes. Since the tests and examinations are also occurring online, students are using the stolen identities to cheat the system and pass the exams. This is why a robust AI-powered identity verification solution is required by the education system to ensure the integrity in the system as well as the legit attendance of the students.
AI Eliminating Identity Fraud
There is a software-based solution that operates through AI and can help business organizations to ensure the identity of their clients. Let’s discuss the solution in more detail.
- Identity Verification Solution
The AI based identity verification solution provides document verification and face verification. The AI is trained on the different types of documents and the solution can easily detect fake documents. The OCR technology helps to extract data from the MRZ or QR code of the document to ensure authenticity of the document. Face verification based on AI helps to verify the identity of the person by matching their photo against the photo on the ID card.
- Biometric Certification
This is the added layer of security that uses the person’s biological feature including their eyes, face, or fingerprints to verify their identity. These features are unique to the person and by training the AI on these features, the identity of the person can be verified.