Reducing eCommerce Fraud with Automated Driver’s License Verification

eCommerce has been on the rise, with more people enjoying shopping without needing to leave the comfort of their homes. When the novel coronavirus broke out, eCommerce suddenly became a necessity, enabling consumers to acquire the goods and services they need while avoiding potential risks of contracting the virus. According to ACI Worldwide Research, retail eCommerce sales worldwide surged a whopping 209% in April 2020 because of the COVID-19 pandemic.

However, as eCommerce activities continue to expand, relentless attacks from fraudulent individuals are also catching up. Criminals use stolen personal information to create new customer accounts or hack existing ones to make fraudulent transactions and chargebacks. According to the Federal Trade Commission, online shopping-related fraud topped the most reported fraud cases during the pandemic.

Although regulations are in place to better protect customer data and privacy, enterprises often employ the bare minimum, relying on traditional identity verification methods to confirm a customer’s claimed identity. As fraudsters become more creative in bypassing cybersecurity, these conventional identity proofing processes are no longer enough to keep them at bay.

Online retailers must shore up their cybersecurity measures by deploying efficient identity verification solutions to weed out bad actors from the point of enrollment. They can leverage mobile facial biometric identity verification, which matches a person’s selfie against the picture extracted from their provided identity document and verifies they are who they say they are.

Supplementing the facial biometric identity proofing procedure is automated identity document authentication, which determines if a customer’s government ID is genuine or not. Users can take a quick snapshot of their driver’s license and send it for digital drivers license authentication.

Identity assurance is paramount, especially among businesses operating remotely. By harnessing the power of modern identity verification technologies, online merchants can streamline customer verification and quickly spot signs of fraud to mitigate criminal attacks. For more insights on the matter, here is an infographic from Ipsidy, Inc.