Want a Thriving Business?
Focus on Age Verification!
A report by Insurance Information Institute states that almost 14.4 million cases related to identity theft were reported in the year 2018 with a constant surge in these numbers with each passing day. Apart from this, with more businesses moving towards online platforms during the COVID-19 pandemic, data breaches and cybercrime damages are estimated to reach $6 trillion by 2021. With issues like identity theft becoming a critical pain point for online businesses, opting for Age Verification Solutions seems to be the way forward.
Through AI-based document verification solutions, checking the authenticity of identity documents is not a problem anymore.
Age Verification Solutions
To confirm the age of customers and for the protection of minors, some of the most common Age Verification Solutions that are acquired by numerous businesses include the following:
- Biometric Authentication
A thorough identity screening solution enabled with verification of a customer’s age is crucial. The process involves verification of the user's identity using biometric features such as fingerprints, iris scan, voice recognition, facial features, etc. Biometric verification not only helps in identifying under-age customers, but it also limits the access towards age-restricted products. The user's identity can be verified accurately and efficiently by analyzing behavioral and physical attributes. As a result, it promises high security against fraudulent activities, greater efficiency, and preferable convenience for legitimate customers.
- Online Document and Identity Verification
Through AI-based document verification solutions, checking the authenticity of identity documents is not a problem anymore. The process involves extraction of user’s PII from government-issued ID cards, passports, utility bills, or any other type of authentic identity document. The details are then used to perform accurate comparison checks based on the user’s facial identity. Similarly, online identity verification verifies users through liveness detection, fake image detection, 3-D depth perception and video based authentication. Additionally, the process can be enhanced with the incorporation of 2 factor authentication, which involves the verification of user’s email and user’s phone number.
Industries That Require Age Checks
It is estimated that in 2021, 53.9 percent of all retail e-commerce will be generated via M-commerce. Millennials seem to be in the forefront of this trend, with 86% of them making online purchases through their cell phones. With the ease of online purchases, it has become increasingly difficult for businesses to verify a person’s age online, especially since buying items has become as simple as providing credit card details. A list of age-restricted industries that acquire age verification software and solutions to combat the issue has been provided below:
- Alcohol and Liquor stores
- Tobacco stores
- Online gaming
- Online dating
- Purchasing weapons
Age Match for Fraud Prevention
A Statista report states that about 1.46 billion consumers shop online and the number is expected to rise by 46% at the end of 2021. Consequently, a rise has been seen in the rate of cyber frauds and scams. According to the Identity Theft Resource Center, 1.3 million children’s records are stolen each year. Self-reported data to the FTC also indicates that over 14,000 identity theft victims were under the age of 19 in 2019. Age verification helps businesses counter such problems, which if left unattended could cause them to lose credibility and face hefty fines and penalties.
With the increasing use of internet and mobile phones among teens and children, online businesses have to take safety measures to prevent children from using any service or content that contains explicit material by setting up an age verification process on their website. This helps underage customers browse through age-appropriate content and prevents any law-breaking.
Pension or Provident Fund Fraud
Fraudsters manipulate the age of a user to gain access to financial benefits from an organization. By claiming old-age benefits with false or modified documents, businesses can face huge losses. Efficient use of age verification solutions assist in the screening of legitimate customers
E-cigarettes, also known as vaping, is not an illegal industry. However, it contains potentially harmful substances, such as nicotine and diacetyl flavorings that are linked to serious lung diseases. Easy access of such products can prove to be harmful to minors. In 2020, FDA approved the policy that restricted the sale of E-cigarettes to underage customers. Vendors need to ensure the product is not being sold to minors through a proper age verification system.
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