Technical advancement is reaching a new level every day. Every day we observe something innovative that surprises our thinking. Technology has reached that point where all business fields are dependent on some kind of machine. Advanced technology has made our life easier and allowed businesses to perform their tasks more efficiently and effectively.
Improving internet speed and its wide availability has allowed businesses to shift their business online. The shift has proven to be incredibly successful for businesses as it has allowed them to engage with a larger amount of customers more efficiently. More and more customers are moving to online purchasing and it is benefiting the online business industry.
Online Business Risks
While the technology has opened new gates of opportunities in different business sectors, the benefit also comes with some risks. The popularity of online business has also captured the attention of fraudsters. Many businesses and customers – as well- have been the victims of frauds and scams.
The commercial sector and financial sectors have been a victim of fraud through identity theft for a long time. Financial Sectors are in more danger to fraud and hacking as they consist of more rewards for fraudsters. Ever since the increase in consumers’ online presence, fraudsters have also developed advanced tech to manipulate individuals and businesses. The trend of online scams is increasing and causing billions of dollars of loss in the global market. Businesses are developing advanced technology to help them detect and prevent any fraud.
Use of Artificial Intelligence for Fraud Prevention
You might have heard the term “Artificial Intelligence” from science fiction Hollywood movies or in news. The technology is so sophisticated that it does not require human help. It sounds so good to be true. But let’s define what artificial intelligence is and its uses.
Artificial intelligence demonstrates intelligence like human intelligence and it is capable of performing many tasks that can be performed through HI but better. This technology is being used in many different sectors to help them work more efficiently. Artificial assistance in our cell phones like Siri, Bixby, Alexa, etc is some examples of AI. But the technology has many vast uses.
Artificial intelligence has now been used in the detection and prevention of frauds and scams. The development in the field of AI has allowed businesses to fight fraud and the system has achieved great success statistically to prevent many incidents.
Fraudsters and Scammers are taking the help of advanced technology for their misdeed which is why they are put against a highly developed AI-based system to protect businesses from such cybercrime. AI-based Know Your Customer (KYC) verification is helping businesses to prevent such crime.
Know Your Customer Verification
KYC verification is an AI-based system that allows businesses to verify their customer identity while they onboard him/her on their platform. It is an identity verification software that helps in verifying the identity of an individual to guide business if the customer is a threat or good for the company. Many businesses are required to perform verification of customers to ensure any kind of fraud involvement.
Online platforms especially financial sectors like banks need to be ensured before letting an individual entry. In order to know your customer, the system requires some documents to verify their identity. Some businesses also take the help of face verification for their customers’ identity verification. Businesses are engaged with one another which is why knowing your partner is also important.
Whenever we enter into an online business site for purchase or open an account in a bank, we are being asked for some documents. These documents vary with the type of business and their requirements. Documents that we are being asked are usually following
- ID Card
- Driving License
- Social Security Number
- Credit / Debit Card Number
These documents are run through a document verification AI-based system to verify their authentication. Documents are scanned and uploaded to the system through OCR technology and they are verified through the data available.
Face Verification is another kind of identity verification system which consists of facial recognition. The technology is mostly used by financial sectors and the public sector to store and keep the information of individuals.
It works by capturing the picture of a face and running it through available data in the database. If the face matches with the information in the database, the individual is allowed to enter the platform.
Know Your Business
Every business requires the assistance of another business. Some businesses outsource their marketing or supply tasks to another firm for better results and low cost. Many businesses buy or sell to other businesses and their relationship is for the long term.
There can be fraud associated if your business partner is not authentic. This is why knowing your business is important. Know Your Business (KYB) is also an AI-based verification system that allows businesses to verify their business to make sure of their work and prevent themself from any fraud.