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Over the years, online fraud including identity theft and credit card fraud has increased in volume as technology and accessibility to the internet has developed. Preventing it has been the main objective for businesses and banks for some time now. Verifying customers is the first step to prevent such fraudulent activities to take place. However, manual procedures for identity authentication are long and tend to frustrate customers. This is likely to decrease any company’s customer satisfaction levels. For customers posing a higher level of risk, additional information may be required, that may make the whole process even longer.
For the purposes of increasing customer satisfaction, identity proofing procedures in any business need to be streamlined. There has to be a way that can fulfill the requirement of fraud protection for the business, all the while reducing the hassle for customers to provide more information in order to purchase a product or service. The three best ways to make the process of identity authentication more user-friendly are.
Eliminate the Need for Paper-based Authentication
For years enterprises have been using manual authentication procedures to verify a customer’s credentials. However, since manual authentications take longer and tend to frustrate customers in case they are asked to produce more information to complete the process. To eliminate this annoyance, the fraud prevention industry has come up with automated solutions for identity verifications that can verify a customer in real time.
Such methods use AI tech to scan a user’s documents and authenticate them. Any document including ID cards, driver’s licenses, passports, credit/debit cards, utility bills can be scanned electronically to be verified by the authentication software. Such services are provided by third-party SaaS providers, thus saving the hassle for each business to develop their own digital verification systems. Electronic ID verification systems have been tried and tested by a number of different industries including e-commerce, retail, financial services, and insurance.
Reduce the Time for Identity Checks
It has already been established that maintaining paper-based verifications for customers is a nuisance for them, and can damage customer relations for a company. Asking customers for more and more information – and the time it takes for you to authenticate it – can frustrate them unnecessarily. Methods like electronic verifications need to be used in order to reduce the time of the whole process. Moreover, systems should be put in place to recognize the device used by the users to access the website so that they do not have to verify themselves every time they try to access your services.
Majority of the Customers are not Scammers
Companies should understand that most of their customers, online or otherwise, are not using their services to commit fraud. To streamline the whole fraud detection process, they should implement methods that can identify legitimate customers and direct them to what they require as soon as possible. Additionally, systems should be put in place that can reduce the number of false alerts, reducing the time it takes to chase after a completely valid user. Thus, it can be ascertained that enhanced identity authentication procedures can improve customer services of any company.