need for identity verification
need for identity verification

The Critical Role of Identity Verification for Businesses in 2024

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Digital transactions are more than common in our activities today; they’re the foundation of global business. This makes strong identity verification systems more important than ever. As we end the first quarter of 2024, the digital world is changing faster than we’ve seen, highlighting the need for companies to focus on reliable identity checks. This is crucial to stay competitive and maintain trust and safety online.

The rise in online fraud makes this even more urgent. According to reports, the cost of online payment fraud could jump from $32.39 billion in 2022 to an astonishing $48.61 billion by 2027. This shows the huge financial and reputation risks for companies that don’t have strong identity checks in place.

Thankfully, the fast development of technologies like biometrics, machine learning, and blockchain offers new ways to fight fraud and improve identity checks. Companies now use multi-factor authentication, including traditional methods and new biometric technologies like face recognition, fingerprint scans, and voice analysis. A report by Goode Intelligence predicts that the global biometrics market will grow to $55.2 billion by 2025, mainly because of the increasing need for secure identity verification in different sectors.

This article highlights some of the major reasons you have to prioritize digital identity verification solutions in 2024. Here are some of the reasons to take into consideration:

  1. The Surge of Digital Transactions: 

The global e-commerce market is on a trajectory to hit a staggering $6.3 trillion by 2024. This boom in online transactions, while opening avenues for growth and accessibility, also paves the way for increased fraudulent activities. The stark reality is that as our digital footprints expand, so does the playground for cybercriminals. Implementing robust identity verification measures is no longer optional; securing transactions and maintaining the hard-earned trust of customers is necessary.

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E-commerce projections
  1. Navigating the Complexities of Regulatory Compliance

The regulatory landscape is tightening, with laws like the GDPR setting the precedent for data protection and privacy. Non-compliance is a risk businesses cannot afford, with penalties reaching up to 4% of annual global turnover. The message is clear: as regulations evolve, so must our approaches to identity verification. It’s not just about avoiding fines; it’s about fostering a culture of transparency and trust.

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Compliance statistics
  1. The Alarming Rise of Identity Fraud

Projected to affect more than a third of adults globally by 2024, identity theft is a looming threat with losses expected to surpass $25 billion annually. This isn’t just a statistic; it’s a clarion call for businesses to fortify their defenses with advanced identity verification technologies. Protecting consumers from identity theft is not just a regulatory mandate but a moral obligation.

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Identity theft statistics
  1. Meeting Consumer Expectations: The Ultimate Goal

At a time when privacy concerns are at an all-time high, over 77% of consumers demand businesses that respect their privacy and secure their personal information. The path forward is clear: businesses must implement secure, user-friendly identity verification solutions that protect and respect consumer privacy. It’s about building a relationship based on trust and security.

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Data privacy statistics

As we continue in 2024, the importance of identity verification in securing online transactions, complying with regulatory requirements, combating identity theft, and meeting consumer expectations has never been more evident. Businesses that invest in sophisticated identity verification technologies will safeguard themselves and their customers and gain a competitive edge in the digital marketplace. The future is digital, and in this future, identity verification is the key to unlocking trust, safety, and success. Learn more about Prembly’s identity verification solutions here, and get started here.