Identity theft is a household term these days, with over 12 million victims of identity fraud in the United States alone annually being reported. Billions of dollars are being spent to prevent identity theft, and businesses are jumping in to fix this problem, since it can cost them big bucks as well.
According to the Federal Trade Commission (FTC), identity theft has been the number one complaint for years. The internet has become a hot bed of fraudulent activity, with criminals and fraud protection companies vying neck and neck to outdo each other.
But recent security measures have helped business cut out fraud with new technology, making individuals and businesses feel more confident in their protection.
How Does Fraud Hurt Businesses?
Almost all business transactions in larger businesses go through the cloud, or the internet. Even small businesses are becoming more and more electronically dependent as cash becomes obsolete.
Fraud can take many forms and each form impacts a business negatively.
Minor, every day types of fraud that can cost major money can include basic customer fraud, when a person intentionally gives false information to defraud a business. ID theft and misrepresentation is the same thing on a higher level. Payment fraud can occur when someone uses one of your customer’s accounts to make fraudulent transactions. Depending on your type of business, you may also see sleeper fraud, which is when someone develops a relationship with your business specifically to build a line of credit and then runs off with your money.
Larger types of fraud that usually occurs in bigger companies or on a bigger scale include professional fraud, where a person that has a trusted advisory position uses their role to switch your funds into theirs. Sometimes this occurs so slowly and gradually that by the time you notice the funds are missing, the person is gone.
Account takeovers occur when someone is able to access your accounts and use them without your knowledge. Insider fraud happens when someone on the inside of your company’s important information uses that info to cheat you intentionally. There is also the potential problem of money laundering, where illegal funds are processed through your business so that they look legitimate, leaving you with the problem of dirty money and lots of questions to have to answer to government authorities.
Real World, Real Time Security
Artificial intelligence has grown in amazing leaps and bounds over the last decade, and security companies have been using that technology to make their products safer. Now, a mix of artificial intelligence, computer programming and ID experts work in tandem to provide real world identity verification in real time, when you need it most.
This immediate security can cut down on fraudulent credit card use exponentially, saving businesses and individuals millions of dollars every year.
How Does It Work?
The basic steps are simple. The business will scan the front and back of a person’s ID using the most up-to-date technology available, depending on your security company. From those images, data is extracted and sent to a computer with AI and computer vision, where it is verified in real time against security features programmed into the machine.
You can safely and quickly determine if a document is authentic, and then continue your sale knowing that your purchaser is the rightful owner of the credit card they are using.
Find Your Security with the Right Company
Considering all of the potential sources of threats and how much even one bad case of identity fraud can cost you, it’s no wonder people and businesses throughout the world are willing to pay for promises of security and identity verification.
Take some time to research security companies and how they can help your business, and find the one that is right for your protection.