The technology world is constantly evolving, and companies have to adapt their business and implement new trends. It is necessary for them to stay competitive, and following the latest trends in the digital world is one way to do that. One of the biggest changes is that face-to-face customer interactions have been substantially reduced, and online interactions continue to increase. Therefore, companies must enable higher security for their organizations by verifying their customers.
Digital identity verification is slowly becoming an important part of each company’s strategy. Without it, effective security measures cannot be sustained. Regardless of the industry, each company needs strong verification systems. The benefits are enormous, such as allowing companies to avoid fraudulent activities and identity theft.
So, if you are wondering why you should double-check your potential customers, read the following four reasons to find out more.
Reducing the risk of fraudulent activity
Client verification should be your top priority when opening a company. With this process, you can make sure you know who your clients really are, reducing the risk of possible fraudulent activities and identity theft. This way, you gain insight into customers who might be a possible threat to your company.
There are many ways to verify your client’s identity, but this process should be easy to do and not make your clients bored and make them go through several steps of authentication. So, you can implement identity management software with which you protect clients’ data and securely manage their accounts. It is important for your clients to know that they have control over the identification process.
So, with the software, you can make use of decentralized identity solutions where customers can store their personal data in a digital wallet, and they will choose what gets to be shared. An organization issues users verifiable digital credentials consisting of any data that can be connected with the user, such as a driver’s license, healthcare card, or national ID card. Also, these verifiable digital credentials include information about the issuer, who it was issued to, when it expires, etc. So, instead of assuming who your client is, implement a system that requires verified data of your clients to prove their identity.
Image source: CX Today
Improving your reputation
Keeping your reputation intact is important if you want to keep your client’s trust. In the age where there is so much choice, it is easy for people to use other brands’ services if they don’t get what they want with yours. Clients actively look for businesses they can trust. The main reason is that the percentage of data breaches continues to rise. In fact, in 2023, during quartal one, over 6 million data records were leaked worldwide because of data breaches. So, it is normal that people want to put their sensitive information in the hands of trustworthy systems.
When you implement strong identity verification checks, you show clients your seriousness about keeping their data safe. Failing to identify the need for trust between you and your customers will ruin your reputation, thus, reducing your revenue as well. Implementing a strong and, above all, smooth identification process will give them the assurance they need. Taking care of your clients’ needs will make them your advocates, improving your company’s reputation within the business world.
Saving on manual costs
Implementing a quality identification system is necessary because it shows that you are a reliable company that takes care of its devoted clients. Also, digitization of the identification system will reduce many operational costs because you will avoid paper and manual processes.
Using modern verification systems will make the process faster and help you save money that you can use for other things later on and improve your customers’ experiences. With this type of system, everything will be done automatically, and each client will be checked thoroughly in a simple, effective way, avoiding any fraudulent activities.
Image source: ITPro Today
Avoiding legal issues
As the number of data breach cases continues to rise, many countries implement laws for companies to protect themselves and their clients against any type of cybercrime. Implementing a mandatory client verification system and keeping the collected data records safe is one of those laws. Failing to implement such protection and having your data compromised will cause serious legal issues and impose harsh fines on your company. Also, all regulatory laws constantly change, so it is necessary to remain compliant, follow, and implement all new rules in your verification system.
Keeping both your company and clients safe is the most important activity in your everyday work. You need to implement a customer-friendly identification system where you check your clients’ identities in a safe and quick way and at the same time, protect their data. This way, you will protect your company from identity theft, improve customer experience, gain your clients’ trust, and ensure fraud compliance.
To gain deeper insights into how these digital credentialing systems are reshaping identity verification processes and bolstering security, you can explore the informative resource available at https://microblink.com/resources/blog/documentation-verification/.
Also, these verifiable digital credentials include information about the issuer, who it was issued to, when it expires, etc. So, instead of assuming who your client is, implement a system that requires verified data of your clients to prove their identity.