Why Would Companies Use Identify Verification in Their Business

Whether dealing with customers through a website, a web app, mobile app, or over the phone, knowing who they are can improve the business relationship. But there are other benefits to being able to check the identity of a new customer.

Here we lay out the reasons why ID checks are helpful, even for newer businesses that might see it as too much trouble to integrate.

Companies of all sizes worry about the increase in fraud, especially with the online business done at a distance. The ability to remain anonymous while dealing with businesses poses a considerable risk, especially to smaller businesses that cannot survive a significant amount of fraud in the first few months.

By using a knowledge-based authentication system, it’s possible to clarify who the person is that’s placing an order through their business. This avoids the risk of accepting payments and dispatching goods, which initially looks good but is subsequently rejected by the bank.

The approval process for getting started with a new business customer is time-consuming. There are several checks needed, sometimes across more than one system to verify enough details to authorize their account and let the transaction go ahead.

A company like Cognito HQ offers detailed verification services that match up a phone number and name to existing records to verify that the person exists. Cognito helps to prevent fraud and has industry-leading match rates.

Other information that is already known relating to their identity correlated with their phone number helps to round out their customer profile. Be using these types of verification services, the account can pass several early checks before the new customers get too far ahead in the sign-up and ordering processes. It also speeds up the final approval to go ahead with their order when breaking up the verification into different stages.

It is difficult for companies to know when a mobile user is seriously invested in the brand and app, or if they only occasionally use it.

While the business will likely have useful information to know how often the app is loaded, they aren’t inside the mind of the user themselves. Therefore, by requiring confirmation of basic identifying information from the user to access higher-level features, it separates the wheat from the chaff. As a result of that, the business now can readily work more closely with identified, verified users.

It’s not necessary to invest huge sums into the development of a verification system.

Look for companies that provide an SDK to developers. An SDK package lets third-party developers add code that allows for encrypted communication to verify the information entered already.

This is a cost-effective way of turning an app with unverified users into one divided between users who are verified already and those who are not (or who failed the checks).

User identification combined with verification brings mobile apps to the next level. Companies should readily embrace this technology to advance their relationship with their users and increase their fraud protection too.