Both businesses and consumers fall victim to Internet fraud schemes in increasing numbers every day. For this reason, companies are turning to identity verification solutions. In other words, businesses both large and small are becoming intent upon authenticating their customers.
According to the FBI, online thieves steal millions of dollars from their victims every year. Therefore, it’s essential for businesses to protect not only themselves but also their customers.
Here are several reasons why companies should include identity verification on their website.
Identity Verification Combats Online Fraud
The change from magnetic strips on credit cards to computer chips has done a lot to reduce instances of fraud at the retail level. However, this technological advancement has done nothing to help online businesses. And it’s important to note that online fraudulent transactions are expected to exceed $6 billion over the next year.
For smaller firms, fraud can be an even bigger problem than it is for larger companies. That’s because smaller companies just aren’t able to absorb the costs associated with fraud. However, by having a system in place, you can establish proof that your customers are real. This helps to reduce fraud and its associated costs significantly.
It Improves Online Ordering
Online shopping has become extremely popular. In fact, according to data gathered by Statista, an estimated 224 million people in the United States will be online shoppers by 2019. Numbers like this can mean a big surge in sales for your company. How will you handle the increase in volume?
Add identity verification solutions to your website, and you will significantly streamline the ordering process. This alone will reduce the chances of costly mistakes.
What’s more, identity verification can simplify the checkout process. This is important because customers often become frustrated by complex checkout systems. As a result, they abandon nearly 70 percent of shopping carts before completing their purchase. However, robust authentication will give you fewer abandoned carts and more sales.
Identification verification systems can also help you to reduce shipping errors. Shipping errors cost companies money. To make matters worse, they also can cost your business its reputation as well.
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It Makes Mobile Transactions Safer
Mobile phones are an increasingly popular way to shop online. This fact makes identity verification even more critical.
The last thing your mobile customers want to do is spend time entering their information into your website from their phones. Consumers are also concerned with making sure that their data is protected while they’re using their mobile devices. Both of these issues can be resolved with identity verification systems.
As these kinds of systems become standard for mobile transactions, customers are going to come to expect them. This will be true regardless of the size of the company they are purchasing from.
It Helps You to Remain Compliant with Regulations
Federal and local governments require online transactions to comply with specific applicable laws.
For example, some products that businesses sell online require consumers to be at least a certain age. Additionally, you must report other products and services to certain governmental bodies such as the U.S. Internal Revenue Service.
This is why it is so important for businesses to verify their customers’ identity. When you fail to do this, you jeopardize your business’s existence. What’s more, your business could also face costly legal ramifications.
Whether you are a small business or a large corporation, identity verification is important. It keeps both you and your customers protected. What’s more, it improves your company’s efficiency, which will in turn lead to an increase in your profits.