Identity verification, otherwise known as ID verification, is how an organisation accurately verifies the digital identities of its customers. Digital ID verification is one of the most powerful tools to counteract identity fraud, which is a growing problem in Australia and New Zealand financial institutions.
According to the Australian Competition & Consumer Commission’s (ACCC) Scamwatch, there was a significant increase of 234% in instances of identity fraud in Australia in September 2021. In New Zealand, Netsafe reported incidents of identity fraud increased by a staggering 86 per cent over the 2021 financial year.
There are many reasons for this leap in identity fraud: the increasing digitisation of businesses as a result of the COVID-19 pandemic, a greater willingness of consumers to conduct transactions online, and instances of natural disasters or economic uncertainty advancing opportunities for financial fraudsters.
Detecting and responding to identity fraud can be a challenge for financial institutions that are dealing with millions of transactions daily. That’s why so many are turning to Artificial Intelligence (AI) identity verification technology to help improve the speed and accuracy of identity fraud detection.
AI is estimated to be worth AU$22.17 trillion to the global economy by 2030, according to the CSIRO. It refers mostly to systems or machines that mimic human intelligence. These systems can perform tasks, iteratively improve themselves based on the increased data they collect, and eliminate the need for humans to do complex or mundane tasks.
What role does AI play in ID verification?
Verifying the digital identities of your customers, anywhere, any time and from any device, is a massive undertaking. Due to the sensitive and complicated information involved, it is prone to human error when left in human hands. Using AI and Machine Learning (ML) technologies, identity verification processes are faster, more accurate and contain less built-in bias. It helps a business of any size, from a small-to-medium enterprise (SME) to a multinational enterprise verify the identity of customers and address local compliance needs.
Using AI in an environment where billions of lines of code power millions of transactions is a key way to reduce human error, eliminate bias, and collate data to react faster to emerging threats. It also gives a business enough information to proactively address threats of the future.
As ID verification has moved online, biometric authentication has emerged as an effective means to accurately identify customers. It is also used to fulfill Know Your Customer (KYC) compliance requirements.
Biometric authentication involves the use of face scanning, fingerprints or voice prints to verify a customer’s identity. It will eventually replace other authentication methods such as typed passwords or PIN codes, which are much more prone to fraudulent activity and bad actor interventions. AI has been the key means for biometric authentication to succeed on a mass scale in large organisations. It would simply be impossible for a single person to match up face scans accurately enough to satisfy financial compliance requirements. Read more about GBG’s biometric capabilities, underpinned by AI.
How does GBG provide the AI to underpin digital ID verification?
GBG’s ID3global decreases your customers’ exposure to fraud by allowing you to run a wide range of rigorous ID verification checks on people located all over the world. The AI component uses more data sources than your average identity verification solution. Designed to make life simpler for you and your customers, ID3global is an end-to-end solution that uses innovative AI technology to create a seamless user experience.
Throughout 2021, GBG demonstrated continued efforts to combat identity fraud through intelligent ID verification. In 2021, GBG announced the acquisition of Verifi Identity Services Limited, commonly known as “Cloudcheck”, a leading provider of electronic Identity Verification (IDV), and Anti-Money Laundering (AML) solutions in New Zealand. Cloudcheck has established a leadership position in New Zealand’s electronic Identity Verification (IDV) market through understanding customer needs, solution effectiveness and speed to value.
GBG also recently announced the expansion of its flagship product greenID, the Australian-founded solution and industry leader in identity verification. The expansion means greenID has a broader capability to deliver across more channels. The new greenID Digital Identity Verification Platform includes facial biometric and document verification to ensure consumers can be successfully verified at higher speeds and with greater accuracy.
greenID now verifies more than 2 million identities for businesses across Australia and New Zealand each month.
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