Digital Identity Verification: Why Is It Important?
Cybercrime has become a significant threat to the financial technology (fintech) industry. With the rapidly evolving digital financial services, fraudsters have found complex technologies to defraud customers. To curb this menace, startups have embraced robust digital identity verification for payment services.
In Nigeria, no week is saved from thousands of customers filing complaints or writing bad reviews about their ordeals with the traditional banking sector. Some victims of payment fraud have become a shadow of themselves, while others have taken legal action to retrieve their stolen funds.
The Problem of Bank Verification Number
The introduction of Bank Verification Number (BVN) and other Unique Identifiers seems insufficient because of the significant number of compromised cases associated with them. For instance, a stolen mobile device can leave you in stitches if your SIM card is linked to your BVN. With regulations tightening, identity verification's cost is on the increase, and cutting corners on government compliance can be tempting. However, such companies are fined outlandish fees.
Brands like Pay4Me have started verifying the identity of their customers through a combination of identity documents and other relevant information. To counter money laundering, fraud, and other illicit financial activities, brands must protect themselves with robust customer verification processes.
Why Do Customers Need Digital Identity Verification?
Customer First
As a customer, your safety is paramount whenever you want to make payments online. While the Nigeria Data Protection Regulation (NDPR) is putting fintech on its toes, companies have introduced identity verification to protect you and the company you use from fraud.
Digital identity verification protects against the following:
1. Terrorist funding
2. Fraudulent documents
3. Identity theft
4. Internal-server hacks
5. Trade of illegal goods
6. Political corruption
7. Market manipulation
8. Gang funding
9. Drug trafficking
10. Human trafficking
Brands Second
Compliant identity verification helps businesses sort identification processes and avoid future costs, retroactive compliance, and non-compliance fines. In addition, it helps them win the trust of their customers against the following:
1. Vulnerability to brand sabotage
2. Fraud
3. Hacks
4. Data breaches
5. criminal activity
Note: Customers get verified once but must update their expired documents to stay verified.
What are the Benefits of Identity Verification?
Streamlines Customer Experience
A verified customer finds it easier to transact business with a company without fear of hacking or data breaches. The process saves brands from unnecessary administrative costs and satisfies customers with a better experience.
Detects and Prevents Identity Fraud
Digital ID verification helps businesses easily detect and prevent identity fraud or modern fraud techniques.
Improves Regulatory Compliance
Identity verification enables businesses to act by Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Furthermore, it ensures minors don't make payments not authorized by parents or guardians.
Enhances Security
Digital ID verification gives businesses an advanced security feature that curbs criminal activities on its payment feature.
Streamlines Onboarding Processes
With digital ID verification, customers don’t need to submit physical copies of their identification documents or visit offices for a cumbersome verification process before payment.
Protection of Sensitive Data
Customers' sensitive data, like personal information, are protected when customers get verified. The data is encrypted, and makes it difficult for anyone to access such information because of the advanced technology implemented.
Reduces Friction for Customers
Customers don't suffer from re-verification whenever they want to use the business for any service offered. As a result, customers transact businesses within a short time.
Read: How to Avoid Student Visa Scams
Why Must I Pay For Verification?
Pay4Me uses independent identity verification firms to ensure our company and customers comply with various KYC/AML policies. The brand requires payment for verification to prevent identity theft, confirm identity, and maintain a trustworthy platform.
Why Pay4Me Requests For ID Verification?
1. Customer verification provides essential protection for Pay4Me and improves customer trust.
2. It protects our customers and businesses from threats such as identity theft, fraud, and risks to minors.
3. It ensures that you remain in compliance with government regulations.
4. To comply with the Nigeria Data Protection Regulation (NDPR).
Where Does Identity Verification Information Come From?
1. Government database
2. Credit history
3. Public Records
4. Internal customer data
Why Identity Verification in Financial Services Is Critical?
Identity verification improves businesses' fraud-prevention capabilities, reduces financial losses, streamlines compliance with KYC rules and other regulations, and increases customer confidence and loyalty.
Read: How to Protect Yourself from Travel Scams: An International Student Guide
How Does Pay4Me Verify My Identity?
1. Pay4me verifies the authenticity of your ID document to help determine if the ID document is real or fake.
2. It matches your ID with photos of your face.
3. It validates your ID number on your documents to ensure they are not expired or fake.
Pay4Me offers you a trustworthy platform to transact your cross-border payments. With our seamlessly implemented ID verification, you don’t have to worry about losing your identity or funds when you use us.