Grow your business in 2021
In 2004, Bill Gates predicted that over the years authentication methods like passwords will become less and less common, and that business will rely more an more on simpler authentication methods. Now fifteen years after the fact, passwordless authentication methods like biometrics, knowledge-based authentication and document verification methods are taking root for customer verifications. Although some companies still do not see the advantage of moving away from password-based authentications. They do not realise that it is entirely for the safety of their customers and their businesses. For them, it is not concerned with their sales directly or their business for that matter, and hence is not an useful feature for implementation.
However, with the increasing concerns of identity fraud and a significant change in regulations and liability, businesses are now starting to see its competitive advantage. A Switch in Regulations As cases of online identity theft and scam increase and with the increasingly sophisticated methods now being executed for financial crimes, regulatory authorities and governments have become proactive about implementing anti money laundering laws and compliance measures. Banks and online businesses are facing stricter regulatory requirements from their respective governments. Failure to comply with such regulations can lead a business to face serious sanctions and penalties, not to mention a loss of reputation in the market and among its customers. Increase in Liability Ever since the GDPR (General Data Protection Regulation) has shifted the liability from the buyer to businesses, companies are scrambling to implement safer and simpler customer verification methods.
Where online retailers cared about their sales point of view, this liability makes them think twice about safer authentication. GDPR levies heavy sanctions to businesses for not fulfilling robust data protection and security measures. Thus companies are now eager to adopt multifactor authentications and online verifications through a document verification service. A report from Gartner has predicted that by 2022 60 per cent of large businesses and 90 per cent of small or medium enterprises will have implemented passwordless authentication methods.
Moreover, the user nowadays has become more and more aware of their rights and market standards. The increase in data breach cases all over the world has also made the consumer increasingly aware. They realise that the protection of data is a responsibility of the entity collecting or processing their data.
Protection from Identity Fraud
One of the most affected entities of identity fraud are businesses, particularly online enterprises. Passwords can be easily breached by cybercriminals and scammers and hence are immensely insecure. Authentication methods like biometrics or digital identity authentication are some of the few fast and secure ways for user verifications. They are extremely hard to deceive and can be implemented easily. It seems that fifteen years ago, Bill Gates got the concept that password authentications are an insecure method. Today methods multi-factor authentication and online identity checks through document verification and facial recognition are gaining precedence in the market for user authentications. Thus, safer authentication can be a sound competitive advantage for businesses. For more details please visit: https://shuftipro.com/