eCommerce platforms are required to prove their customers’ claimed identity for compliance with Know-Your-Customer (KYC) regulations. Moreover, US online merchants, who accept credit card payments, are mandated to meet the Payment Card Industry Data Security Standard (PCI DSS) to protect consumers’ payment data. Meanwhile, in the EU, businesses must follow through with the General Data Protection Regulation (GDPR).
Apart from corresponding penalties, failure to protect consumers’ data also entails revenue loss and customer distrust, which often take a long time to recover even if the incident has already been resolved. Still, confirming if someone is who they claim to be is more challenging in a remote setup. Therefore, an efficient method of identity verification to distinguish bad actors from good customers is needed.
Traditional identity verification methods are no longer enough to keep out the bad guys as they are susceptible to theft and other forms of circumvention. Conversely, modern identity verification solutions offer a stronger barrier against fraudulent attempts. Many are already using mobile facial biometric identity proofing, which harnesses commonly used mobile devices to perform the procedure.
To further eliminate risk, eCommerce retailers can layer their defenses with automated identity document verification, ensuring that the person’s provided government ID is genuine. Customers can use the same mobile device to take a snapshot of their driver’s license and send it for review. Since the process is automated, it completes the task faster with reduced error.
Online merchants should be able to trust that the customer is real even if they cannot see them in person. With modern identity verification solutions supplemented by automated identity document authentication, eCommerce businesses can confidently transact with legitimate individuals and ensure due diligence with regulatory compliance.
For more information about the role of drivers license authentication in securing eCommerce operations against cybersecurity threats, an Infographic from Ipsidy, Inc. is provided below.