KYC verification is considered the ultimate line of defense against Identity thefts but with the passage of time, identity thieves have started coming up with new ways to defraud companies and businesses in cyberspace. KYC verification providers need to outsmart these identity thieves to provide better service to their customers. But for that new technological trends needs to be integrated into KYC software.
Over the years, identity thieves have used identity documents and credit cards to steal the identity of people to cause scams going into millions. Frequently updated security features on identity documents and even digital resources failed to fully safeguard common users from becoming a victim of identity thefts. Unfortunately, more often than not, KYC verification become the source of identity thefts as data collected from users to ascertain their identity, is actually stolen by hackers. Here is a detailed overview that how identity theft has become more problematic over the years, despite greater security measures
Higher usage of digital resources
More and more people are using digital devices and internet to conduct regular activities of their daily life. They pay their utility bills from the comfort of their home, they shop online even for the most trivial products and they share their daily life experiences with family and friends, using social media. Such a huge digital footprint makes them vulnerable to an impending cyber attack that can cause loss of important personal information leading to identity theft.
The menace of dark web
Like any commerce-based system, the demand of particular item creates necessary supply channels. Dark web is one place where the demand for verifiable and real credentials is very high. It is not uncommon for stolen identities and credit card details being sold on this cyber black market. Although, authorities have tried frequently to shut down such platforms but with little success. As a result, a number of identities are being stolen these days despite the higher focus on the security of data.
Lackluster data security measures
It is sad that how even the most visible brands and large companies have been eager to adopt technological resources for better service delivery. But, in turn, they have spent little to nothing on the security of personal data they collect from end-users. Personal information collected at the time of account registration or financial details collected for payment of products or services is at high risk of data hacking. Quite often we read press releases issued by large corporations declaring their failure to shield their customer’s information from data breaches. The utter negligence shown by companies handling user data of millions of customers is also a major reason for the rising trend of identity thefts.
Identity theft poses not only a financial risk for the individuals whose identity is stolen but for those businesses as well who engage with an identity thief. Only properly integrated KYC verification software can safeguard the interest of a business because official authorities and regulators are already keenly safeguarding the rights of persons affected by identity thefts. If we need to rid online marketplace from individuals with stolen identities, across the board adoption of KYC verification is the right way to go forward.