Case Study: My Experience With Management

How Identity Verification Can Help Businesses Not to Lose Money

Identity verification is where the documents presented by a client are verified to ensure that they truly belong to the person presenting them. Many times people may carry along documents that they are not theirs and present them o either a bank or any other institution in pressmen that they are the owners of the papers. If the institutions dealing with such unfaithful customers are not careful, they can end up losing billions of dollars through such presence. At times thieves can use false IDs to open accounts and transfer money from the rightful owners to those other accounts so as to use the money which does not belong to them.

That is why institutions need to be cautious when they are accepting identification from their clients to make sure they do not take any stolen IDs. You can either verify identification on person to person or use online methods to help you in verification. The identification services are beneficial to social networking sites, internet forums, and many others. The services become very necessary especially when opening new bank or financial institutions accounts.

Various institutions are supposed to comply with The Anti-Money Laundering and Know Your Customer Rules if they are to prevent the wrong practices by some unfaithful, clients. With the increasing use of social media, online gaming and e-commerce among others, the use of identification verification services is very vital. When it comes to financial institutions, the process of identity verification is governed by a statutea statute known as Know Your Customers. When clients present their identification the data is sent to the identity verification service. The services will then check the data against the private data to see if they match with what is provided.

Optionally, the knowledge-based authentication questions can be asked the person holding the identification documents just to be sure he or she is the true owner of the documents. When the data is displayed to the identification service they find specific information like whether the customer is genuine. They will also would want to verify whether the customer ID has been taken. Another thing that the service would want to establish is whether the customer could be aware that their ID is being used by other persons.

The institutions say those who are using other people’s Ids to the administration and stay all sorts of transactions with them. Therefore the identification verification process is a fundamental process to many companies as they prevent them from losing money. It is a requirement that all institutions dealing with money like banks should apply the Know Your Customer Policy especially when they are opening new accounts to make sure that they open accounts for the right people.

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