Our civilization and the planet we live in are developing at an ever-increasing rate. People should alter their habits and behaviours to adapt and stay practical when quick changes emerge around them. One must move quickly just to maintain one’s position; those who resist the new are destined to lag behind and become overwhelmed by novelty. Identity theft is covering the world with darkness. Document verification is the solution.
The 21st century offers many advantages, no doubt. The world is more practical than ever thanks to enormous technology breakthroughs. It seems unlikely that anyone could have foreseen our lives being as digitised as they are now.
In the past, only basic services could be ordered online or over the phone, such as food delivery, meeting scheduling, restaurant reservations, etc. Certain services could not be delivered in a digital environment for security reasons without a trustworthy means of document verification. Even that has changed now. Citizens can open bank accounts, ask for loans, or get insurance remotely, among other things.
But many of the problems with document verification continue. When certain difficulties are overcome, new issues arise that must be addressed separately. Now let’s talk about the current situation and what can be done to address the challenges of our digital environment with regard to document verification.
There is a Demand for Digital
The world has changed from what it once was. The speed of life today is significantly faster than it used to be. The most valuable asset in an era of abundance and a fast-paced, competitive atmosphere is time, which cannot be sold or traded. Despite the fact that we are more pragmatic than ever, time saved is time invested in something else. Certain businesses put tremendous pressure on others to follow by completing tasks and providing services more swiftly.
Long lines had been replaced with scheduled appointments, but as remote services entered the market, both clients who valued their time and businesses looking to save expenses associated with customer support found the new status quo inadequate.
As a result, the majority of businesses are now able to offer their clients the option of receiving services in the convenience of their own homes.
As is always the case, the supply followed the demand. Although many organisations pushed employees to use technology, many felt more at ease conducting business in person. The global dissemination of COVID-19 had altered the scenario. Time became a secondary concern after safety. Schools, colleges, banks, government agencies, and in some circumstances even hospitals have started to function remotely. Once again, the world has changed, and it is doubtful at best whether things will ever be the same again.
Businesses that don’t shift to accommodate this transition are generally doomed to failure; nevertheless, those that do prosper include the banking sector, particularly fintech. Businesses that don’t shift to accommodate this transition are generally doomed to failure; nevertheless, those that do prosper include the banking sector, particularly fintech.
Even without remote services, identity theft existed. The approach was riskier for the fraudsters, though, and it frequently dissuaded a sizable proportion of them.
However, the modern world’s digitization creates the conditions for fraud to be as pervasive as it is. Criminals profit from gaps in the procedures, particularly those involving document authentication. The black market has made it simple to obtain stolen personal information, such as someone’s name, address, social security number, and bank account number. On the dark web, Social Security Numbers (SSNs) may be purchased for as low as $1!
According to Proofpoint, 33 percent of U.S. people have had their identities stolen at least once. Identity theft is most common in the U.S.
The creation of new, synthetic identities using actual and fraudulent personal data is another trend in the criminal world. Then, fraudsters utilise these false identities to establish a solid and credible credit history. They finally maximum all of the credits after months or even years, at which point they permanently vanish, leaving the banking industries running after phantoms.
Everyone is harmed
The losses from fraud are enormous. Business Fraud Prevention (BFP) estimates that private organisations, including small businesses, suffer a median loss of $164,000 annually in the U.S. as a result of fraudulent operations, with the absence of internal controls playing a major role in this loss. In other words, if businesses take the required actions, the losses can be avoided.
Those that suffer are not only businesses. Due to compromised credit history, those whose identities or personal information have been stolen may later have trouble getting credit. Children are typically the victims of identity theft since, per a new study, they are 51 times more prone than adults to do so. They may not discover the stolen personal information till they are adults.
It does not speak highly of the businesses either; after all, why would want to do business with a firm that is careless in failing to shield potential customers from identity fraud?
Verifying documents is essential for success.
Despite how dire things appear, there is a fix for these issues. If an effective and trustworthy identity verification mechanism is implemented, the majority of identity and other frauds can be avoided. In an ideal world, every business would work to put these protections in place, both for their own security and to lessen global corruption. The goal should be to stay ahead of the curve; following the law and the rules are not enough.