Protecting people’s identities is extremely important for a variety of reasons. However, these days, it can prove difficult to do so because hackers and others can use modern technology to compromise security systems. As a result, most companies use some type of identity verification in order to protect people’s identities and their information. This is vital since it means that the company’s security is better overall.
The reason that most companies use some form of identity verification is that not doing so leaves their customers exposed to all sorts of risks. Limiting risks to customers is a good idea for all customers. Check out this link to learn more about identity proofing. Continue reading to find out about the risks customers can face if companies do not have identity-proofing solutions.
No Identity Verification Leaves Customers At Risk of Fraud
There are many risks that come with a lack of ID proofing. One of these risks is that customers will be more vulnerable to fraud if there is no identity verification system in place. A few kinds of fraud that customers could experience include credit card fraud and unemployment fraud. Additionally, fraud can put customer identities at risk, as well. Implementing an identity verification system means that it is far more difficult for fraudsters to successfully commit fraud against customers.
No Identity Verification Makes It Easier to Commit Financial Crimes
When a company in the financial industry lacks proper identity verification, it means that fraudsters can commit financial crimes more easily. Identity verification helps protect customers’ financial information and even their money from unauthorized access or hacking. Additionally, a lack of identity verification makes it easier for fraudsters to commit financial crimes in general.
Tax evasion and money laundering are two financial crimes that are made easier by a lack of identity verification. It is even easier to commit a financial crime like terrorist funding if there is a lack of identity verification in the financial industry. As a result, identity proofing is especially vital for this industry.
A Lack of Identity Proofing Can Lead to Unauthorized Access to Medical Records
It is also critical for the medical industry to implement proper identity proofing, as well. This is important so that only authorized users can access customer medical data. Without identity verification, it is much easier for hackers to get into customer medical data and use it for their own purposes. Hackers might even sell that information to other parties, too. High-quality identity verification can help prevent unauthorized access to medical records and protect customer privacy.
Students Can Be At Risk If There is No ID Proofing
Identity verification is important for the education industry, as well. Of course, for teachers, identity verification can help prevent unauthorized access to student academic records and protect their own personal information. However, identity verification can help protect students, as well. If an academic institution does not have identity verification, then both the students and the teachers are at risk of identity theft. This is a major risk and identity theft is a serious issue for anyone who experiences it.
It is also a good idea to point out that the education industry is one that is often not the most prepared for cyberattacks. As a result of this, educational institutions may not have a proper identity verification system in place to prevent identity theft and protect students, staff, and other employees. Cyberattacks on the education industry have also increased in recent years. This could be due to hackers’ awareness that the education industry is often unprepared for such attacks. Still, a lack of proper identity verification in the education industry leaves students, teachers, and others at risk of identity theft.
Account Fraud Is Another Risk Customers Face Without Identity Proofing
Fraud is a major concern for customers in the event that there is no identity verification system in place. This is even more true when it comes to customers of financial institutions. In addition to credit card fraud, customers are also at risk of account fraud without identity verification. New account fraud means that a user is trying to open an account fraudulently.
This means that the user is pretending to be someone they are not when they are attempting to open the account. Obviously, it is a major issue if a user is able to fraudulently open an account in a customer’s name. Without identity verification, it is much more difficult for financial institutions to discover new account fraud and report it so that the customer is properly protected.
As a result, users have an easier time creating fraudulent accounts and potentially harming real customers because they have fraudulent accounts in their names. Identity verification can include verifying documents and verifying the user’s identity with an image of their face. Regardless, a lack of identity verification opens customers of financial institutions up to account fraud. That is another reason financial institutions should implement identity verification systems.