When organisations think of identity verification, their main focus is on onboarding. They tick all the right boxes during this phase, working through identity verification, document checks, and fraud prevention. However, once the account is up and running, this scrutiny ends. In today’s digital world, this can be a dangerous approach. Identity is not always static, and neither are the risks surrounding it.
Changing Identities
In many cases, a user’s identity record changes over time. They move house, pass their driving test, get married, or just change their name. All of these factors will affect a person’s identity documents, and these changes can make them highly vulnerable to fraudsters. Continuous or periodic verification helps companies stay ahead of these issues by providing them with your latest information.
Many fraudsters will access and even purchase aged accounts, which have been inactive for a while. These are perfect to exploit because their original owner is not actively using them, and companies have already verified them during the onboarding process. Running periodic verification checks is an excellent way to stay on top of this, and utilising AI platforms like ours at eyeDP can help you automate the process and flag any documents that may have expired or are nearing expiration.
One of the biggest misconceptions is that additional verification increases friction for users. While this can be true if the process is not handled correctly, modern technology means that a well-timed, clear and simple verification request is not likely to have a major impact on the customer experience.
Different Sectors
In fact, in many sectors, such as finance and gambling, customers will often feel more assured when they know their information is being updated regularly. This can also remove problems for the customer later down the line. Keeping their identity and information up to date will make it easier for them to withdraw funds, rather than having to verify changes to their names or addresses when they just want to get their funds.
Of course, the value and importance of periodic verification vary between industries. In finance, for example, periodic checks can help prevent fraudsters from draining funds or utilising accounts for money laundering, whereas in gambling, they can stop bonus abuse from users operating multiple accounts, or protect those who have self-excluded from opening new accounts. These industries have much bigger stakes than others in terms of finances and reputation, so ongoing verification is quickly becoming essential.
A Smooth Process
The process does not need to be difficult for the company, either. Advances in automation have made continuous verification a much more viable option than it once was. AI tools, like the ones we provide here at eyeDP, have made it possible to verify documents at scale, meaning the onus is no longer on manual teams who are stretched thin by the constant demand.
While the idea of incorporating manual verification might sound like a huge change, this is far from the case. It begins with understanding where risks arise after onboarding. Companies should identify when identity information is likely to become outdated, and map out points in the customer journey where simple rechecks can be slotted in and do not cause a huge problem.
This approach can be highly effective in more heavily regulated industries, providing organisations with greater visibility into their user base and helping reduce the risk of exposure to fraud and regulatory issues.
As AI continues to evolve and fraudsters become more sophisticated, companies across industries are beginning to realise that security should not end at onboarding. Forward-thinking companies are now realising the impact of continuous verification processes, finding themselves one step ahead of both fraudsters and the competition.
