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Facial biometrics is one of the commonly used technologies these days and many industries and businesses are using it to curb fraud and crime on their platforms. The businesses are evolving in a digital era so remote customer relationships are common these days. These online business relationships are the supporting pillar of the remarkable growth of e-commerce, fintech, gaming, virtual assets industry, etc.
But it is also a source of huge risk namely, identity fraud. As per the report of insurance information institute of the U.S. 3 million identities were stolen in the U.S in a year and most of those identities were used to perform identity fraud with the businesses and the most common fraud was credit card fraud.
One stolen identity could take several facets to commit different frauds and facial verification solutions can detect these frauds using Artificial Intelligence. Below is a list of identity frauds that can be reduced with the help of facial biometrics.
Fake identity
Criminal entities develop a fake ID card with some random name and use it to onboard a business platform, enter a place, open bank accounts or make online fund transfers and currency exchanges. These fake identities are developed using the leaked confidential data of the people. Often these ID cards are the creation of the mind of a scammer. A fake identity data is useless for the business to trace back a customer.
Stolen identity
Criminals steal the identity of a person, by using his ID card, driving license, or account credentials to access his account, to get free services entitled to the original person, to execute illegal acts.
This is one of the most difficult frauds to trace as the criminal is using legitimate information and documents to onboard a platform. In case the merchant just requires the ID card, the criminals could get over the identity threshold easily. Face Verification collects useful data in real-time and ensures that the original owner of the identity document is using it.
Ghost identity
Criminals use the identities of dead people to develop synthetic identities and to get free benefits that were associated with that person, e.g. pension, insurance, etc. Ghost identities could also hit all types of businesses, government organizations, banks, insurance companies, etc.
It is almost near to impossible to trace this fraud with manual verification. Face verification matches the real-time face image with the face on the ID card and ghost identities can be traced within seconds without any hefty manual verifications.
Synthetic identity
Synthetic identity is a mix of stolen identity and fake identity. This type of identity fraud is difficult to trace as it includes some valid information such as ID card numbers and the remaining information is fake.
How does online face verification help curb these frauds?
Online face recognition is the best option to curb these frauds as it delivers highly accurate results with 99.99% accuracy. Biometric Authentication rely on artificial intelligence and machine learning to identify fake identities among the original identities.
It uses 3D depth perception to identify photoshopped and paper-backed images. It detects the 3D elements in the image uploaded for verification. The unique facial features detected are saved as algorithms and matched with the algorithms previously saved by detecting the face from the identity document. In case a criminal uses a fake or stolen identity, it will be identified instantly.
It also uses liveness detection and captures minor facial movements to detect that a real person is making verification and not a criminal. It ensures that a paper-backed image is not used for real-time verification.
To wrap up, identity theft is increasing and businesses are the dear target of the criminals to gain illegal funds. Using next-generation technologies such as facial biometrics will prove to be an effortless and cost-effective method in this prospect.
