3 Identity Verification Tips for Businesses

Identity verification is very important in every business. You need to verify the identity of both your customers and the people you work with. When you fail to do that, you increase your chances of being a victim of fraud, losing money and ruining your reputation.

In most countries, identity verification as part of KYC is a requirement for most businesses. Thus, if you have not implemented the right identity verification measures, you could end up in trouble with the authorities. This article highlights three key identity verification tips for businesses.

1. Choose in the Right Tools and Resources

The first key identity verification tip is to ensure you choose the right tools for verification. Whether you are selecting a simple verification API for date of birth and address verification, or more comprehensive data, do your research well and get this data from the right websites. Make use of services that are reputable and websites that are updated regularly. Try out the products before paying for a subscription. Also, you can consider comparing data from different resources.

2. Don’t Forget About the User Experience

You should do your best to keep fraudsters from signing up for your services. However, as you do that, you should do it in such a way that genuine customers will not suffer. If people signing up have a bad experience, your conversion rates will go down. Therefore, when choosing the resources to use when verifying data, check how the system works and how favorable it will be for your customers. Most identity verification service providers will have a description on their website on how their services work. According to Cognito, their verification API pulls customer data based on the submitted data in real-time. Cognito offers products for ID verification, PEP screening, and business verification among others.

3. Make Use of Both Business and Personal Verification

3 Identity Verification Tips for Businesses

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When you are dealing with a business, don’t just look up the owner’s ID and leave it at that. You should do business verification as well. Consider finding some data on the size of the company, the number of years the company has been in operation, addresses, online presence, and registrations among others. Looking into a business is important because people with personal clean records can open fake businesses. Fraudsters too can hire people with clean records to cover up their mission.

By putting measures in place to verify that every user is who he or she says they are is one of the measures you should take to reduce cases of fraud in your business. Other steps you can take to reduce fraud include segregation of duties, continual review of your systems and data, working with fraud experts to set up fraud prevention measures in your business, and making use of a transaction monitoring service. Take fraud prevention in your business seriously, because one small act can cripple your finances and even cause you to close down your business. If you aren’t sure which steps to take, you can always hire an expert or visit a consultant.

Francis Nwokike

Francis Nwokike is a Social Entrepreneur and an experienced Disaster Manager. I love discussing new business trends and marketing tips. I share ideas and tips that will help you grow your business.

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