5 Identity Verification Solutions That Are Transforming E-Commerce Businesses

With advancing technology came the birth of eCommerce businesses that saw them outshining retail businesses as we knew them. However, this new birth also came with a fair share of challenges, especially those related to online security and fraud.

More cases of fraud, identity theft, and related cybersecurity problems targeting eCommerce businesses and their customers became rampant. Some businesses returned to the traditional retail business formula they were used to, while others advanced their security systems to improve protection. Below, we’ll look at five identity verification solutions that have helped transform eCommerce businesses from frail online solutions to the secure, successful businesses we see today.

OCR Solutions for Reduced Risks of Payment Fraud

Optical Character Recognition (OCR) is a timely technology transforming how eCommerce businesses capture, store, and manage user data for safe payment. This technology can help scan bank cards in an app and the web to verify users’ information before processing payment. Businesses can also integrate online ID-scanning and recognition solutions from top SaaS suppliers like OCR Studio to verify users’ IDs before registering their payment information on the business website.

All these steps ensure a safer way of receiving and relaying payment on eCommerce websites and apps. Business owners don’t have to worry about lost business due to fears of insecurity and fraud. Verifying customer identity before signing the up on your website helps filter out fraudulent people who might be preying on your genuine customers.

Qualified Electronic Signature (QES) for Improved Trust

The success of an eCommerce business is characterized by different levels of transactions and agreements that demand different levels of trust. Since you’re doing business with people you’ve probably never met physically, having a digital, legally binding solution for sealing agreements can make a difference. QES is the digital, legally binding solution to sign off agreements and proceed with businesses with minimal fear of losing your investments.

When ranking electronic signatures, QES is regarded as the most advanced of the digital signature solutions, offering users the highest level of trust. A signer’s identity is verified through a face-to-face equivalent process run by a Qualified Trust Service Provider (QTSP). A digital certificate is then created as a binding contract. Only 27 EU member states consider the QES a legally binding signature, just as a handwritten signature is binding.

While still gaining interest from other non-EU countries, the QES is quickly becoming a strong digital tool for verifying identity and improving trading processes. Companies from the US and other areas doing business with EU companies need to understand the local expectations surrounding digital signatures, especially QES, and adhere to them. QES will likely become the standard operating practice for highly sensitive business transactions globally whenever eCommerce companies do business.

AI and ML Verification Systems for Combating Deepfakes and Advanced Fraud

As AI advances, deepfake-related identity fraud is also on the rise, with perpetrators targeting consumers with AI-generated audio or video formats impersonating celebrities to defraud them. Attackers have ridden on the advantage of the complexity of AI to generate complex attacks that targeted users may not easily detect at first sight.

For instance, through synthetic identity fraud, the perpetrators can combine real and fake identity components to defraud unsuspecting targets. They can use real names and addresses combined with fake social security numbers to lure customers into transacting online.

The eCommerce and corporate world is left to deal with this sophisticated and emerging threat that presents an intimidating new challenge in fraud. Due to these complexities, standard cybersecurity measures might sometimes not work, hence the need for advanced AI and machine learning (ML) solutions to curb these threats. As fraudulent attackers use AI to build their attack strategies, businesses must also respond through AI to counter the attacks.

The continually advancing machine learning algorithms can identify and block suspicious anomalies in real time, protecting your business from advanced fraud. You can also use real-time liveness checks to verify the person you’re dealing with during a contract is real and not an impersonator. Fraudsters can pre-record a video impersonating someone you know or digitally produce a replica to win a contract.

Authentication for Strengthened Defence Against Identity Theft

The impressive success of eCommerce is also mainly due to mobile commerce success, where users can buy and sell products at the convenience of their smartphones. While selling and buying through mobile devices offers great convenience for both parties, it has its share of security challenges. Fraudsters target many mobile shoppers to steal their authentication data and perform fraudulent activities.

That’s why eCommerce businesses must continue embracing the various mobile identity verification methods such as two-factor and multi-factor authentication, Touch ID, and Face ID verifications. These identity verification processes add extra layers of security, ensuring customers can access their accounts comfortably whenever they buy. MFA and 2FA guarantee users additional verification credentials, protecting them even when their cards or passwords are stolen.

Additionally, mobile verification solutions like codes sent to users’ emails or mobile devices mean they’re the only ones able to access their accounts unless they lose their devices. Using biometrics and hard tokens can also limit access to authorized persons only.

Encryption for Digital Document Validation

With the rising use of electronic documents and mobile verification, there’s a need to rethink identification and document validation for heightened protection. Attackers now target e-documents stored in users’ mobile devices. As eCommerce businesses share crucial documents with partners for verification and appending of e-signatures, the documents become exposed to various threats the business might not have control over. This is true because mobile devices are personal properties and are difficult to manage remotely.

Through advanced encryption and safe communication protocols, businesses can ensure the safety of these documents, limiting access only to the recipient of the documents. Additionally, AI-driven rigorous digital identity verification processes can be customized to changing threats to offer reliable solutions to these challenges. Businesses must also continue studying the evolving digital identity verification trends to ensure their documents and data remain tamper-proof and original.

Effective eCommerce business management starts with understanding you’re up against strong identity verification challenges that you must address head-on for success. By implementing these solutions, you can easily transform your business for successful growth.