The trends of online shopping have been changed by giants like Amazon, eBay, Ali Baba, etc. They have made digital platforms a new normal for everyone. Customers can now visit their desired online market and can buy stuff anytime and anywhere.
Online shopping and payments may seem a convenient method but they are not completely secured from various fraud risks including their confidential information exploitation. Similarly, in the e-commerce industry, synthetic identity fraud is also a threat that involves the purchase of goods using someone’s account illegally.
The online market has seen massive growth and customers are making purchases through this channel more frequently as it is a time-saving process and buying of products can be made without the hassle of going anywhere. Hence for secure and risk-free online shopping, e-commerce platforms must implement biometric security solutions.
Proactive Measure of Biometric ID Verification for E-Commerce Problems
Online shopping has become the most popular trend among the masses as it is reliable and convenient, order placing can be done remotely, and hassle-free deliveries at the customers’ location. Though the retail sector brings orders to customers’ doorsteps, they are also facing high risks of identity fraud which later results in chargebacks, failed shipments, and additional address correction charges.
Legal authorities have made it a must for e-commerce sites to ensure Know Your Customer (KYC) compliance in order to mitigate the criminals’ digital onboarding. Retail stores are targeted by fraudsters to conceal their funds as they lack biometric recognition checks. Criminals can easily flow their illegal funds while making expensive purchases.
Real-time customer verification is provided using Artificial Intelligence (AI) powered biometric screening to analyze their distinct biological features. Restricted products such as tobacco, liquor, website memberships, and others are offered by some e-commerce sites. This requires customers’ age verification. So, biometric security systems must be integrated.
Advantages of Implementing Customers’ Biometric Authentication for Retail Stores
Advanced technologies are being integrated by retail stores, such as
Facial Feature Recognition
Real-time Selfie Analysis
Moreover, they help in the validation of transactions, prevent fraud like account takeover, and deter external breaches. E-commerce sites’ operations have been streamlined by biometric recognition solutions as it reduces the additional use of resources.
AI and ML-based biometric user authentication help online retail stores to provide an overall enhanced shopping experience to the customers, hassle-free order placement, safe transactions, etc.
False Chargeback Claims
Digitization in e-commerce operations has increased the false chargeback claims due to which, these sites are now exposed to huge financial losses. However, online retail stores can prevent additional loss by doing complete and accurate verification of customers and their addresses through instant and real-time biometric screening. It will also help this industry to mark more revenues and restrict fraudsters from breaching the systems.
Account Takeover Fraud
Though e-commerce sites offer a wide variety of products and services, the most critical task is to secure their customers from account takeover. This type of fraud helps fraudsters to hide their actual identity by bypassing biometric security systems and using spoofing attempts.
Online retail stores can validate transactions to prevent account takeover fraud and Card Not Present (CNP) through the integration of biometric recognition systems. These AI-powered identity verification solutions map the biological features of a customer which are impossible to replicate. Thus, biometric identity verification ensures that the customer or buyer trying to make a purchase is an actual account holder.
Compliance with KYC and AML Regulations
Fraudsters are rapidly adapting to digitization while improving their capabilities in order to exploit e-commerce sites. Fraudsters try to exploit legitimate buyers by committing deep fakes, spoofing, phishing, and ransomware attacks. Moreover, this allows them to make purchases using someone else’s payment information.
E-commerce sites must bring an efficient biometric ID verification as a countermeasure as they are on the verge of facing identity fraud, and other cyberattacks. Retail stores must increase their efforts to provide an enhanced and risk-free customer experience. They should also check the transactions to ensure that they are discouraging fraudsters in every manner. In this case, online retail stores must integrate biometric security solutions like facial feature analysis to prevent identity fraud.
Retail stores failing to comply with AML/KYC regulations will not only experience reputational damages but will also face legal action. They will also have to pay heavy fines in the worst scenarios. This is why the implementation of AI-powered biometric recognition is a must to reduce fraudulent onboarding. These identity verification solutions allow e-commerce sites to place preventions for criminals by deploying real-time facial feature verification during digital onboarding.
Nowadays, fraudsters are trying to deploy various strategies in order to exploit e-commerce sites due to which retailers have to face financial and reputational losses in the market. E-commerce sites must integrate effective biometric recognition services to recognize legitimate buyers and imposters. Real-time identification also helps to prevent fraud enabling customers to shop in a risk-free environment.