Guest Editorial by Gil Artmoore
While the number of identity fraud cases has steadily declined over the past few years, the financial burden borne by the victims has increased.
According to Javelin Strategy and Research, American Victims of identity theft lost $1.7 billion in 2018.
This is double the amount that was lost in 2016.
As malicious actors step up their game and adopt new strategies to steal personal data, you should consider adopting high-tech solutions such as Artificial Intelligence (AI) to protect your business from privacy breaches and identity fraud.
AI has lots of applicability in this area ranging from net identify verification processes to anomaly detection.
Below are some of the ways you can employ AI in your business to reduce the chances of identity fraud…
Do Large-Scale Customer ID Verification in Real-Time
Many online businesses are required by law to verify the personal details of their customers.
However, ID verification can cause friction for both the customer and the business because drawn-out ID verification processes hurt customer experience.
Customer experience is a key business metric that should never suffer under any circumstances.
In fact, according to Walker, a consulting firm, customer experience is poised to overtake product and price as a key brand differentiator by 2020.
To alleviate the customer experience problem when doing ID verification, businesses can utilize the power of Artificial Intelligence to automate processes.
Real-time ID verification is possible today because machine learning, AI, and computer vision can help businesses acquire and extract data from ID documents then verify the authenticity and accuracy of the data in real-time.
Typical ID verification processes that utilize machine learning and artificial intelligence take the following format:
A customer takes a picture of their government-issued ID card
The image is converted into computer-readable text
The customer takes a video or photo selfie and the system verifies if the face recognized matches the one extracted from the ID card
The customer takes a liveness detection test where the AI system verifies if the video was taken in a live setting.