The fintech sector is growing rapidly due to the association of modern technology with banking operations. Thereby, this sector is expected to accumulate a $6,228.2 million market share by 2023 due to the incorporation of the latest advancements. Despite this unprecedented growth and digitization, the fintech industry faces severe identity theft and account takeover attempts.
Therefore, a streamlined identity authentication module is necessary to tackle such fraudulent behaviors of imposters. For this reason, the fintech sector should adopt online identity verification measures to automate the detection of illicit entities and ensure the identity protection of legitimate customers.
Stimulate Fintech Operations With ID Verification
Online identity verification operations hold immense importance in the regulation of fintech industrial operations. These authentication measures are driven by machine-learning modules, which automate the detection and elimination of high-profile customers instantly.
The digital identity authentication modules effectively recognize all the bad actors during the onboarding procedures of new fintech customers. This multi-layered authentication operation provides global support, ensuring the customer’s identity is examined against several databases in real-time.
Identify Prevailing Crimes in the Fintech Industry
Technological advancements have led imposters to bypass manual security checks for the sake of undertaking illicit financial operations. Therefore, fintech operators must emphasize the incorporation of online identity verification checks to minimize various fintech scams, which are examined below:
| Phishing Attempts | Phishing attacks are very common in the fintech sector. The imposters create fake websites that are encrypted with viruses to steal the customer’s credit card details for illegal banking transactions. |
| Presentation Scams | The imposters fabricate legitimate customers’ biometric details to manipulate the fintech operators into accessing online banking services. |
| Account Takeover | Identity scammers commit account takeover fraud by illicitly acquiring the customer’s account details, including email addresses and passwords, to modify the accounts to their benefit. |
| Payment Scam | The imposters illegally access the bank account details and use the credentials to conduct illicit monetary transactions. |
| Synthetic Identity Scam | Synthetic identity scams are recurring crimes that disrupt fintech operations. The imposters combine the customer’s legitimate information with fake data to create a new fraudulent account for the purpose of illicit transactional activities. |
Role of Online User Identity Authentication in Fintech Sector
Online identity verification solutions are crucial for the elimination of the above-mentioned fintech scams. These authentication measures ensure the protection of customer’s identities against document forgery, phishing, and payment scams. Some of the most influential online identity verification measures are discussed below:
- The elimination of prevailing scams in the fintech sector requires streamlined document verification measures. This is done through digital optical character recognition (OCR) scanners. OCR scanners are used to authenticate the customer’s documents because they effectively identify all the alterations and manipulations in the documents, leaving no room for document forgery attempts.
- Biometric identity authentication operations protect online fintech portals from account takeover attempts. These measures ensure secure customer login procedures, as customers’ legitimacy is determined through the validation of their facial, vocal, and fingerprint patterns.
- Identity verification modules ensure the assessment of customer’s risk profiles through customer due diligence operations. These checks ensure additional security against money laundering attempts. The fintech operators must conduct extensive CDD checks to evaluate the customer’s risk profiles in real-time.
Impact of Video KYC in Fintech Verification Identity
Video KYC is a digital component of online identity verification solutions that aims at identifying the imposter’s spoof attacks, synthetic identity operations, and deep fake attempts. Video verification modules limit the access of identity spoofs from legitimate fintech services. These measures include conducting extensive facial analysis of customers during the onboarding process. The customer’s authenticity is validated when examiners prompt the customers to perform certain actions. This ensures whether the customer is a legitimate entity or an impersonator.
Fintech Applications of Identity Verification Online
Online identity verification process are applicable in various fintech operations. These operations stimulate the customer’s onboarding process, which stimulates the elimination of high-profile customers from accessing the fintech operations. Moreover, digital identity authentication measures intensify mobile banking operations, which are stimulated through biometric authentication and AML screening operations.
Furthermore, biometric facial recognition and fingerprint scanning operators are used to authenticate access to automated teller machines. Therefore, the utilization of online identity verification checks protects the fintech operations from the illicit access of imposters and identity manipulators in real-time.
Final Thoughts
Online identity verification measures play a crucial role in the regulation of the fintech industry from illegal external access. These measures provide a paperless authentication procedure for the customers, which stimulates the examination of remote customers. Digital identity authentication operations effectively mitigate all the prevalent fintech scams, including phishing, impersonation, and account takeover attempts. Furthermore, the fintech sector must emphasize biometric identity authentication, optical character recognition, and AML screening procedures to limit the imposter’s illegal access. These services ensure that only legitimate customers proceed with the acquisition of fintech services in real-time.
