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Identity Verification and E-commerce Platforms

The digital revolution has increased the use of technology in every part of our life. The world is now dependent on technology for every basic need. Businesses have moved to the means of the internet for their operation. E-commerce platforms were already developing and now the COVID-19 pandemic has given the final push for the businesses to shift online. Unfortunately, fraudsters have also utilized technology to carry out their criminal activities and e-commerce platforms are their major target for such activities. This is why a need for an identity verification solution arises to eliminate such fraudulent activities. In this blog, we will discuss in detail the types of fraud that E-commerce platforms can face and how identity verification solutions help to combat such frauds. 

Types of Fraud in E-commerce Platforms 

  • Identity theft 

Identity theft has become pretty common these days. Through the dark web and the black market, people’s identities are not as safe as used to be. The criminals use the stolen identity of the people to get access to their credit card information. Once they have that, they can use that to shop online while the money will be deducted from the bank accounts of the victims. Once the victims realize that they have been charged for something they have never bought, then they can claim their money back from the banks. The bank will reverse the transaction made and the business will be left to face the consequences. They will be further penalized for not carrying out customer verification properly. 

  • Chargeback 

A chargeback occurs when the customers ask for the reversal of their transaction. They can claim that their identity is stolen and the previous transaction was not made from them. This can cause businesses to face the loss of money as well as the loss of product. The bank will ask the e-commerce platform for proof of identity verification. If they have carried out proper identity verification process, chargeback fraud will be caught. 

  • Shipment

One of the important things for businesses to run successfully is to have a proper system for shipments and delivery. Delivery is a major part of online business. Getting products misdelivered can cause businesses a major drawback. Sometimes there are frauds involved while delivering the products. Identity verification solutions offering address verification can be a major help for such operations of an e-commerce platform. 

  • Money Laundering

Global regulators and governments around the world are majorly concerned about money laundering activities. E-commerce platforms have become a good source of money laundering. It is a good way of transferring money out of the country as well. Getting involved with such businesses can cause your business major damage. This is why an identity verification solution can be a great way to verify the businesses you partner with. 

  • Imposter websites

Imposter websites exist that pretend to sell something and take the personal credentials of the users through this. This is one type of phishing attack. Even your business can be a victim of the importer website. Criminals can use the name of your website to target their clients. You must have a proper verification procedure so your customers are assured of the authenticity of your website. 

Identity Verification Solution

AI-powered identity verification solutions can assist the e-commerce platforms in verifying all their customers and keep their businesses safe from fraudulent activities. This helps them maintain a good reputation as well. 

Let’s discuss the types of identity verification:

  • Face Verification

This is the type of verification process that uses the face of your customer to verify their identity. The customer will have to send their selfie and their facial features will be analyzed to verify the identity and fight spoofing attacks. 

  • Document Verification

In this process, government-issued identity cards are used as an identifier. The customer uses the identity cards for document verification. The AI-powered solution is trained to verify the format of the identity document as well. 

  • Address Verification

This process uses the address of the person to verify their identity as well as their address. The customer will have to submit an official document with a secondary document that contains their address. The solution will verify their identity and address against the secondary document. 

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