In the past, identity verification was possible only with on-site meetings. A client visits the bank or financial institution to apply for a financial product personally. Followed by a firm handshake, the deal was signed. In today’s world of business digitalization and applications sent and reviewed electronically, things have become different.
On the one hand, it provides more flexibility and a better user experience for customers. On the other hand, it comes with certain security risks due to the anonymity of the digital world. Companies need to be 100% sure they deal with a real person. Verification turns into an issue with a growing number of identity thefts, account takeovers, and other emerging types of fraud.
This is where an automated verification system can be a game changer. In this article, we will discuss how the approach works and what benefits it brings to both business owners and legitimate users.
What Is Automated Identity Verification?
Automated identity verification is a modern solution that lets businesses confirm people's identities without the need to meet them in person. It utilizes smart algorithms, technologies, and approaches powered by AL and ML technologies.
They help to ensure that the personal details provided are genuine. As a result, the technology made it possible for digital platforms to speed up the authentication process making it smoother and more cost-effective.
How Automated Identity Verification Works
For businesses, confirming the identity of their customers is a top priority. Depending on the industry and situation, there are specific moments when these checks are vital.
One crucial point is during the onboarding process when a customer sets up a new account or applies for a service. Automated identity verification steps in here, making the process swift and hassle-free. Customers don't need to provide extra documents or go through manual checks. This smooths out the onboarding journey, enhancing the overall experience.
Moreover, automated identity verification comes into play when a user updates credentials or account details. The same applies to clients who carry out online operations associated with higher risks.
Types of Automated ID Verification
Automated verification is a complex approach. It comes with a blend of methodologies usually delivered as an all-in-one solution. However, at some point, business owners can customize it and select a niche-specific algorithm separately.
To understand, what exactly can suit companies’ needs. We will describe some of the major automated ID verification types:
- 2-factor authentication – 2FA acts as a crucial barrier against identity theft and protects online identities. By going beyond the traditional username and password, 2FA adds an extra layer of security. With 2FA, a second verification step is in place, making it much tougher for hackers to steal user data or gain access to their info.
- Database approaches – these methods verify identity using data from different sources. Companies use them to gauge user risk, reducing the need for manual reviews. However, the approach does not guarantee 100% assurance often due to false online identities.
- Knowledge-based authentication – KBA utilizes security questions to confirm identity. Generally, legitimate users do not find it hard to answer them while hackers may find that challenging. KBA sets a time limit for providing the correct answer. However, fraudsters are now trained to hijack personal info from social media and other sources. That info may contain needed answers.
- Online verification – the method helps to confirm legitimate IDs and the fact they belong to a real user. Generally, clients are asked to provide a picture of themselves holding their ID, ensuring they match. While very secure, some find it inconvenient or intrusive to submit their face and ID images. Besides, that makes the onboarding process a bit more complicated.
- Biometrics – this verification type tracks facial features, voice, iris, retina, and fingerprints. It provides more flexibility and convenience to users. Once set up, it eliminates the need for passwords or security questions. However, hackers can still compromise the flow. When users’ photos or videos from social media get into the wrong hands, these assets can lead to fraud.
When used separately, these verification methods cannot guarantee 100% fraud protection. So, businesses need a comprehensive solution, that can deliver fundamental benefits.
Benefits of Automated ID Verification
Automated identity verification does more than just guard against identity theft and fraud. It's worth noting that these technologies benefit both online users and business owners.
Streamlined User Onboarding
Manual customer reviews take time and resources. They can be very demanding, which results in onboarding delays and low user satisfaction. Automated ID verification speeds up this process. It takes seconds to verify the provided data. Companies encourage quicker onboarding and increase clients’ loyalty. It also saves businesses time and resources, letting them concentrate on their key objectives.
Fraud Prevention
Automated identity verification provides top-notch anti-fraud means. Brick-and-mortar methods are slow. Besides, they often make mistakes. With automated systems, advanced technologies like AI and machine learning ensure accurate real-time verification. These systems analyze IDs, biometrics, and behavior to confirm legitimacy. Automating this process cuts the risk of identity theft, fraud, and unauthorized access.
Automated Regulatory Compliance
Advanced verification systems are a must for businesses to meet regulatory standards and lower the risk of non-compliance. Industries like finance, Fintech, e-commerce, or healthcare are obliged to verify customer identities. Otherwise, they will never have effective tools to prevent fraud, money laundering or other illegal actions.
Compliance disability can lead to hefty penalties and harm a company's reputation. Automated systems make sure businesses follow regulations by conducting thorough and consistent identity checks. They also keep a record of verification activities for compliance evidence when needed.
Juicyscore’s Solution for Automated Identity Verification
JuicyScore uses advanced machine learning and artificial intelligence to offer top-notch anti-fraud services based on automated ID verification. Tailored to suit business needs, our software brings a wide selection of tools to detect and stop unauthorized service manipulation with its built-in behavioral and device-assisted parameters tracking.
AI Powered Identification
Our solution includes state-of-the-art technological upgrades powered by the latest ML and AI innovations:
- The software guarantees efficiency and dependability with advanced AI-driven algorithms. It creates detailed end-user profiles by considering various technological data and behavioral attributes for automated ID and device authentication.
- By using ML techniques, the system automatically detects and addresses different types of fraud risks in real time. It examines technical data from user device settings, features, and indicators, allowing smooth monitoring, evaluation, and analysis of network infrastructure.
Checking over 200 Data Points
An integrated broad data vector seamlessly processes automated data analysis based on hundreds of data-driven and behavioral factors. It has enough capacity to handle huge datasets effortlessly. It examines crucial aspects of operating system architectures, client accounts, and connectivity details for both Android and iOS devices. Its primary aim is to help organizations enhance their decision-making processes effectively.
Key Features
Protecting user privacy is our utmost concern. The JuicyScore solution doesn't collect any personal data. Instead, we focus on processing and analyzing behavioral and device-related parameters. This approach makes it easy for businesses to spot potentially risky and fraudulent activities. Besides, it makes the automated ID verification process faster and more cost-effective.
Device Fingerprinting
The JuicyScore team designed a solution that thoroughly examines a wide range of primary and secondary traits linked to potential fraudulent behavior. The software monitors essential device-related data to achieve unmatched accuracy in device fingerprinting.
A strong data vector assesses key elements like RAM capacity, screen size, display quality, device type (tablet, desktop, laptop, or mobile), and other relevant factors to ensure precise fingerprinting.
Behavior Pattern Identification
Our system quickly alerts business owners whenever it spots any suspicious activity that can be a sign of different fraud types. Teams can easily identify and react to actions like device cloning, randomization, remote access, and other routing tactics. Using behavioral patterns, the software helps swiftly detect and prevent various potentially harmful or fraudulent behaviors.
How It Works
JuicyScore leads the way in anti-fraud technology, providing cutting-edge tools customized for different financial and business sectors. We're committed to adapting our anti-fraud toolkits to meet the ever-changing needs of digital platforms.
Seamless authentication
Our technology streamlines the verification process, ensuring a hassle-free experience for users - no more manual checks or lengthy processes. Clients may simply provide the required information, and JuicyScore handles the rest. Whether your customers are opening a new account, accessing a service, or making a transaction, our automated ID verification ensures security and efficiency at every step of the onboarding process. Companies can enjoy the convenience of seamless authentication with our automated ID verification solution.
Account protection
Our system operates on the concept of risk scoring. It is a complex process that considers various data points and algorithms to assess the likelihood of fraudulent activity. The methodology also helps to keep user accounts safe. Here's a simplified breakdown of how our anti-fraud tool works:
- The system inputs extracted features into a trained model to predict the likelihood of fraud for each account or operation.
- It assigns a risk score to each user or transaction based on the predicted probability. This score can be a number or a label indicating the risk level.
- The system adjusts the risk score further based on factors like business rules, risk tolerance, and regulatory requirements.
The combination of different algorithms made it possible for us to create a unified anti-fraud solution. It relies on advanced technologies that help businesses and users keep their sensitive data safe.
Get Started with JuicyScore Today
Our dedicated experts are available 24/7. They will guide you through the JuicyScore integration process. You can start using our system right away and enjoy the advantages of our advanced fraud score technology seamlessly incorporated into your system in three easy steps:
- Integrate an SDK or JavaScript into your platform.
- Tailor configurations to fit your company's needs.
- Start collecting and analyzing data right away.
Get in touch with us today to arrange a demo and discover the array of features we offer.
FAQs
How does automated identity verification work?
It handles automatic user identity checks on autopilot. Businesses use the technology as an alternative to conventional authentication which is too time-consuming and costly. Automated ID verification is a faster and more reliable method.
How can automated verification help prevent fraud?
The technology uses specific algorithms to check and analyze user data. It detects potential anomalies and mismatches, which are a sign of potential fraud. Then, the system sends alerts and notifications to enhance businesses’ decision-making. It all happens in seconds letting companies react promptly.
How is automated verification different from manual identity checks?
Unlike manual reviews, it takes automated ID verification systems seconds to complete the full-scale check. As a result, it comes as a more flexible and cost-effective solution that improves the onboarding process and increases customer loyalty.
What industries and use cases is automated verification best suited for?
Automated verification systems can be applied across different industries. They will suit Fintech-focused companies as well as loan and insurance providers, banks, e-commerce platforms, and other digital businesses.