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Understanding Authentication & the Vital Role of Digital Identity Verification in Your Business

What’s Digital Identity Verification for Business.

Authenticationis the act of proving that something is true, genuine, or valid. It involves confirming an identity fact, such as conducting digital identity verification for businesson a credit card holder during an ecommerce transaction. While identification only indicates a person or thing’s identity, authenticatinginvolves verifying that they are whoever they claim to be. It is the mechanism of associating an incoming request with a set of identifying credentials. The credentials take the form of a password, which serves as a secret only known by the system and the user. In computing, authentication is the process of verifying the identity of a person or device. A common example is entering your username and password when logging in into an account ora website. Authentication can also be used to confirm theusers in a server. During the process, the user or computer has to prove its identity to the server. Usually, authentication by a server entails the use of a user name and password. Digital identity verification for business is important because it enables organizations keep their networks secure by permitting only legitimate users to access their protected resources, including computer systems, networks, databases, websites, and other network-based applications.

The Authentication Process Explained

To authenticate generally means to verify who the customer is. Authentication takes the form of logging into an account by use of an email and a password.For instance, to sign in to your account, a link is sent to your email account, and you are required to click it to confirm that you are the legit user. Authentication helps to proves that the same person is using the same sign-in details as earlier. On confirming that the details match those of in earlier sign-ins, the user is allowed to access the account. Most sign-inprocesses are simple and last only a few steps. The usermustis prompted to key in their email/phone number/username and then enter a password. The customer must provide the same credentials the next time they log in—and this serves as proof the same person is accessing the account.

Protecting Customer Payment Information

Digital identity verification for business is essential in ensuring all customer personal details such as name, phone number, physical address, credit card info remains undisclosed. The revised payment services directive(PSD2) works to protect customers whoshopfor items online. The regulation is a set of directives internet businesses must follow to ensure total payment safety for all their shoppers. The Strong Customers Authentication (SCA) is anotherstrategy responsible for protecting a user’sconfidential info when conducting transactions online. SCA aims at reducing fraud activity and making online payments more secure. SCA requires a business to use at least two of the following three elements.

    1.Password or pin.
    2.Phone Number or token.
    3. The fingerprint of face recognition.

Theuser name and password are not secure enough. A second factor is needed to verify that a user is who they claim to be. Post-pin verification such as studying customer typing-speed and so on is the next level of authentication. This not only prolongs the login process, but makes it more secure.

The Journey of a Digital Customer.

Onboarding is the first step intheshopper’s journey. It is at this stage that trust is initially established. It is also a critical moment when a scammer can use stolen info to set up a seemingly legitimate account so you must embrace digital identity verification for business. Many organizations do not spend quality time assessing an individual's legitimacy, or whetherthe info they enter online belongs to them. Intelligent authentication will require you to collect data about the individual customer journey. Below is the shopper’s journey:

    1.Sign up.

This is when a user fills in personal details during registration. The customer is required to fill in his/her name and phone number. The user then creates an email and a password. A verification message is sent to them through an SMS or email, to help confirm that they are behind the registration. The information provided at this stage enablesone to authenticate the customer’s identityevery time they want to log in.


This stage lets the system verify that the person signing into the account is the same individual.

    3.A background check.

This process helpsa business to vet if a user can be trusted. The first step is to check if the client has been involved in any criminal activity. This is in compliance with the Under the Anti-money Laundering regulation. The security check is done regularly to ensure that no criminals are introduced into the system. Only users with a clean criminal background are registered as new members and allowed engage in business with the company.

    4.User commitment.

If the authentication process goes through successfully, the customer can now commit to the business and make a purchase or enter into an agreement. Getting complete credentials from the customer and following the right authentication process will ensure total payment safety and the best customer experience.

The Pros of Digital Identity Verification for Business.

It’s main benefits in a nutshell;

    1.You can gain customer trust
    2.You expand your reach into new geographic markets in digital channels.
    3.Reduce the cost of onboarding a customer.
    4.No need to meet a customer in person, and their digital identity is already verified.
    5.It gives users quick and convenient access to your services without compromising on security.

Identity verification is a necessary process for all businesses, as it ensures that a shopper’sis really who they claim to be. Identity is the attribute of identical, the correspondence of one thing with another when compared. Character is the set of unique traits and characteristics associated with a unique and irreplaceable individual. Identity verification is an essential requirement in most processes and procedures, both online and offline. The following are some of the benefits of digital identity verification for business:

    1.No more formal meetings.

With the new technology put in place, digital identity authentication has replaced old manual ways of verification. Digital methods are faster and more convenient. Businesses such as banks and insurance companies that need constant communication with their customers hugely benefit from it. With the new ways toverify user identities, you don't have to check IDs when discussing a contract. Your business can trust that the user is who they claim to be digitally. This is important more so whentrying to build client trust online.

    2.Earn client trust.

A strong authentication process can help you earn client trust. The Electronic Identification, Authentication, and Trust service (eIDAS) is the European regulation designed to ensure that electronic interactions between business and consumers are safe, faster, and more efficient. eIDAS provides the standards for how service providers are to perform authentication. Assure your clients that you are eIDAS compliant.

    3.User-friendly dealings.

Digital technology is now taking over almost all aspects of business. It has helped ease down the registration and enrollment of new customers.Everything is now done online. Customers value the speed, convenience, and security of their accounts. Digital identity verification for business provides a faster sign-in process. It also provides customers with the comfort and control they want as part of smooth user experience.

Digital Identity Verification: The Old, the New and the Future!

It’s almost 3 years since the top-four Card Companies in the US made signatures noncompulsory for most of their transactions, yet consumers are still made to sign—and this continues even with its dwindling ability to ensure that only the rightful card-owner uses it to initiate transactions. It seems like PINs and signatures can’t suffice in a payments world where cybercriminals are learning to breach all security walls. Last year but one (2018), the NRF conducted a study where over 40 percent of retail officials said they’d ditched signature requests for card transactions or intended to do so by the close of the year. Thirteen percent planned to follow suit in 2019. And no need to beat around the bush about it! Cybercriminals find PINs easy to breach while signatures lack the “something a user knows” aspect that makes authentication more accurate. These two aren’t secure enough even if individually combined in EMV chip cards. Signatures, were never part of online business, but merchants adopted it to address authentication issues like account takeovers and synthetic identities—which involve criminals taking over a legit shopper’s account or using partially-true info to create a fake account, respectively. And with billions of personal customer data circulating the internet, nailing authentication can be a little tricky.

What Next for Digital Identity Verification for Business?

    1.The multi-step approach.

With many technologies available, merchants should now work towards multi-step authentication! To stay safe, use two to three walls of security. For instance you can combine the use of biometrics with PINs and personal questions (something only a customer would know). That way, a criminal may still fail in one step even if they pass another.

    2.Post-PIN verification.

An excellent way to reinforce your PINs is to add a post-pin verification step that looks into biometrics like customer habits. Habits like password-typing speed, frequently visited websites etc. can help make the authentication process more accurate.

Contributor: admin
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