Identity Verification: Introduced years ago as a single currency, Bitcoin, cryptocurrency made waves in the technology and finance industries with over 1800 cryptocurrencies and 500 exchange platforms available today. But despite stepping forward as the future form of cash, it does not have the strongest track record with scams occurring daily along with other tragic events such as 44 billion worth cryptocurrency that was stolen in 2019.
To tighten security and make crypto money as reliable as fiat money, all measures are continuously explored and considered. As a means to make exchanges tension-free, the cryptocurrency platforms look into online identity verification solutions.
Why need identity verification?
While crimes exist involving old-fashioned cash or fiat money, a large number of crimes happen regularly with cryptocurrency. Only a slight difference would be that fiat money has more security with tracing notes and transactions and that makes it more recoverable where cryptocurrency owners can’t recover their losses most of the time. Hence to allow for cryptocurrency to be safer, the use of identity verification is sought out.
Expected development of the identity verification industry
Analysts found that organizations are in reality increasingly slanted towards advanced identity verification arrangements because of the facilities that they convey in administrative consistence.
It is anticipated by research and markets to inquire that the identity verification industry will develop at a Cumulative Annual Growth Rate of 16% during the forecast time of 2019 – 2024. It requires to develop from $6.0 billion of every 2019 to %12.8 billion by 2024.
This development of this industry is sponsored by expanding mindfulness among organizations with respect to the utilization of specialized answers for KYC and AML consistence rehearses. A report anticipated in 2018 that the 2019 worldwide spending on KYC and AML consistency will increment to $905.
It is because of expanded consistency examination by worldwide and local guard dogs, consistence is not any more an alternative yet a required piece of business activities.
What crypto crimes are taking place?
The existence of cryptocurrency as money only makes it natural for its illegal pursuit. The names of the illegal activities list below should not strike as surprising as the existing crimes done with regular fiat money as well. Bitcoin lists down the most common cryptocurrency crimes as the following:
- Fake Exchanges
- Free Giveaways
- Meet in Person
- Money Transfer Fraud
- Phishing Emails
- Phishing Websites
- Ponzi Schemes
- Prize Giveaways
- Pump and Dumps
- Pyramid Schemes
- Scam Coins
What identity verification solutions are available?
With the advancement in technology, better and more effective security now exists to fight the issues that make cryptocurrency unreliable as a payment medium compared to fiat money.
There are plenty of solutions that will provide for the needed security.
Using their face as a means for identity verification provides quick. And easy use rather than depend on passwords and pins. With today’s technology, extensive facial recognition technology using 3d-depth analysis and liveness detection makes it distinguishable whether a real human is present before the camera or a picture use to spoof the system.
Online identity verification solutions make it easier to get customers’ documents verified. OCR makes it unnecessary to make physical visits for the registration process through the automated online process capturing details directly from the customers’ image provided online. This simplifies the verification of people to combat fake people and criminals.
Using geolocation along with document verification makes it easier to verify a customer’s location. This helps reduce the possibility of suspicious users along with preventing chargebacks with the help of accurate location information.
You can also find like this list from Crypto Head.
Consent Note Verification
Recording a customer’s consent before making a decision that would lead to chargebacks. Such as online purchases provides added security that makes businesses safe against chargebacks and other exploits. It serves as evidence that becomes useful to prove transactions.
Since identity theft is possible majorly due to passwords and pins. OR that makes it not enough as a security measure. The two-factor or multi-factor authorization ensures safer and accurate online identity verification.