- Online retailers have been the common victim of credit card fraud.
- Cryptocurrency facilitators are very common victims of money laundering crime, done through cryptocurrency transfers
- The travel industry has been using identity verification to identify fraudsters and identity thieves.
The business model of every business is different from others, the prospective clients and the future goals are unique to every company. There are always some common threats that are the same for every business like the threat of being defrauded by identity thieves. According to a report of Insurance Information Institute (III), three million identity theft and fraud reports were filled in 2018.
This huge increase in identity frauds and the use of these stolen identities to defraud businesses has increased the concern of the business circles. That is why many businesses are using Artificial Intelligence-based products to mitigate their risk of fraud. A PWC report stated that 20% of enterprises are planning to use AI organization-wide and 27% have already implemented AI in certain areas.
Below is a brief description of how different industries are using AI-based identity verification products.
Financial institutions are considered the most crucial industry for which AI-based identity verification systems are very important. KYC(Know Your Customer) and AML(Anti Money Laundering) verifications are a mandatory part of banking systems these days. Many businesses are providing KYC verification services for banks and other types of financial service providers. Banks use these AI-based services to identify fraudster, identity thieves, money launderers, PEPs (Politically Exposed People) and shell companies.
Fintech companies are also using AI-based identity verification services to reduce the increased risk that comes with their complex business model.
Online retailers have been the common victim of credit card fraud. Fraudsters buy expensive goods off stolen credit cards and later when the theft is reported the business stands liable for the refund to the real owner of the credit card. This fraud trail causes double loss to the business in the form of lost goods and the refunds made to the credit card owner.
Also, the e-commerce businesses that build B2B relationships with online available businesses conduct identity verification on their online vendors.
Cryptocurrency facilitators are very common victims of money laundering crime, done through cryptocurrency transfers. The regulatory compliance makes it compulsory for them to conduct identity verification on their members. It helps them remove the money launderers and identity thieves from their databases.
The travel industry has been using identity verification to identify fraudsters and identity thieves. The person trying to get a visa through a travel agent might be a money launderer or a wanted criminal.
Airports are using AI-based identity verification software to identify the money launderers, wanted criminals, PEPs, drug dealers, etc.
The hospitality industry uses identity verification services to verify the identity of their guests. Sometimes the criminals use the discrete hotels and lodges away from their crime scene to hide from authorities. Running an identity verification process saves the hotel the hassle of investigations from authorities.
AI-based identity verification services are no more a thing related to a few industries it has widespread advantages and flexible structure to fit any industry and multiple types of business models.