Over 50% of all cyberattacks are done on SMBs (Small & Medium Businesses). It’s an eye-opening fact for small or medium-sized businesses. In today’s world of digital security, one thing that many companies say they have but may not actually be the case for most businesses is a robust data verification system for protection against cybercriminals. Many businesses also argue that data security and verification are only required for fintech companies and not for other companies since their data is not that sensitive. However, since almost every other app is based on a subscription model, which requires a customer’s sensitive data to be saved for several user experiences and billing purposes, it’s becoming increasingly important to focus on data security.
What is Digital Data Security?
Digital security is a process designed to protect the company’s digital infrastructure and users from outside threats. When you think about digital security and tools such as biometrics or IP verification, you mostly associate them with expensive technologies used by large companies and tend to omit the fact that they also impact the users of online and physical stores. The truth, however, contradicts our perception. Biometric or IP verification does involve and secures the users and their data.
The internet is a vast, ever-changing landscape that impacts us all. Every time you use the web, you leave your footprints in the digital world, and you can be easily traced with that data because many companies are willing to buy the data for several business purposes. As long as it’s for the business, it’s still understandable, but things become serious when used for all the wrong reasons, like defrauding, identity theft, etc. Moreover, it’s becoming increasingly easy and cheap to acquire data, which is a strong reason why digital security is essential.
Why Digital Security?
Have you ever read the terms and conditions of a new platform? The data says that less than 1% actually take time to read them. That’s crazy! In conclusion, most people do not read and understand what they are accepting when checking “I accept terms and conditions.” This can be seen as another step towards accessing a service quickly without understanding how it will impact digital security or if there is even any benefit at all from continuing all those services, which require you to agree to your data being shared and sold indefinitely after you’ve given consent to agreeing to accept the terms and conditions.
Without accurate data and identity verification, anybody can con anyone on social media platforms, which has been the case for several years. There are numerous stories of people conning by stealing information, posing as someone else, and many other methods. Tinder Swindler, a series on Netflix, shows how a man conned many women by getting to know them through Tinder. You might wonder why an app like Tinder needs data security or identity verification, but imagine if there were technologies such as biometrics, email verification, IP address verification, credit verification, or facial identification. Such incidents wouldn’t have happened because the conman had to verify his identity first. Even if he managed to defraud anyone, it would’ve been super easy to track him down.
Digital Security and Data Verification Restores Trust
Businesses from the largest to the smallest understand that if there’s no trust, interaction can never happen, and it also works similarly for users. For example, a person can’t register with a financial institution without providing biometric data or personal information like their date of birth. Similarly, when it comes to businesses, data verification plays a critical role. For instance, a trading company may receive a registration request from someone who can’t provide all of the requested identity data for verification purposes, maybe because the person is actually a bot or trying to fake an identity. The trading company won’t entertain the request because it seems fraudulent. Therefore, it’s important to have trust, and data verification is essential in establishing that trust between the parties involved in a transaction. Moreover, it is crucial that both companies and users take steps now to protect themselves from fraud and scams because it’s their responsibility.
Combating the Threats with Proper Digital Identity and Data Verification
According to one report, around a third of customers are concerned their personal information has been stolen, while many worry about exposing their data while shopping online. As a retailer with both online and offline stores, it’s essential to create an infrastructure that assures your customers will experience safe transactions and will stop fraudsters. The future of retail is now threatened by new, sophisticated tactics used exclusively by fraudsters. As they multiply, synthetic identity theft—which blends real customer information with fraudulent data to create a new identity—leaves companies vulnerable and unprepared. Machine learning and real-time data verification are the pillars of the future of eCommerce. This strategy can aid companies in effectively preventing fraud while ensuring top performance.
Conclusion
Currently, it is almost certain that any online business is required by law to perform AML (anti-money laundering) and KYC (know your customer) checks on their customers or users. Reliable identity verification is a must for this purpose. Additionally, users can manage their age and identity verification processes more securely with the use of a trusted identity verification service. With the help of end-to-end encryption, customers’ uploaded data is protected by FTx Identity’s age and identity verification solutions, which also protect retailers from violating the law by selling products with age restrictions to minors.