Verify and rule

Identity Verification for Retail & eCommerce

The global boom of the eCommerce industry has spurred the rise of online fraudsters. Facing the growing degree of identity fraud, the retail and eCommerce sectors need to deploy effective countermeasures that would secure the transactions.
Try now
One stop shop compliance agent
Leave your email address if you want to know more about our solution.
The Importance of KYC & AML for eCommerce & Retail

In general terms, the fraud in online retail refers to committing transactions with the use of stolen or fake information:

  • Credit card data;
  • ID;
  • Account data;
  • Bank account details;
  • Credit card details.

The largest e-commerce fraud concern, however, is identity theft, when the combination of the abovementioned illegal actions is used with the client’s personal information (name, address, etc.) to make a purchase.

Fraudsters employ this data in diverse ways, from stealing physical documents to phishing attacks. Unfortunately, the more advanced the technology becomes, the more sophisticated tools hackers invent for fraudulent actions. Ultimately, in the U.S. only, up to 10% of the population suffer from identity theft attack each year. Therefore, retailers need to take adequate precautions.

Stopping fraud requires continual preventative efforts, which include measures ensuring that all transactions are safe, and all users are genuine. In this regard, eCommerce organizations must adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

Basically, legal compliance denotes that organizations must extensively employ identity verification tools to authenticate new clients, guard existing ones against account thefts, and prevent illegal transactions. However, retailers should also ensure that security measures do not impede customer experience since additional steps required for verification may increase cart abandonment and alleviate customer satisfaction.


KYC Use Cases in Retail & eCommerce

KYC procedures in retail and eCommerce help address the major challenges these sectors face in the digital environment.
The lack of proper identity verification

The lack of proper identity verification

The key issues with identity verification in the retail industry include the failed attempts of buyer onboarding, a lack of consumer validation, and insufficient digital identity security during the whole process.

Identity verification is intended to prevent dubious actors from entering the system. The respective digital solutions provide seamless ID checks and KYC & AML compliance. The robust verification system aids retailers in the following:

  • Eliminating supply chain and delivery problems;
  • Streamlining omnichannel transitions;
  • Offering efficient onboarding solutions;
  • Reducing the risk of cyberattacks;
  • Implementing excellent digital identity security and monitoring.
Cart Abandonment

Cart Abandonment

An abandoned cart refers to an incomplete purchasing process. It occurs when a buyer starts checking out but does not finish the online purchase for some reason. It can happen because of inconvenient payment options, missing product details, personal doubts, or other concerns. However, one of the core reasons for cart abandonment is the lack of credibility.

With effective identity verification services in place, retailers can elevate customer trust, thereby minimizing unfinished purchases. When a business has a reliable reputation, clients are more likely to complete their purchases since they have reasons to believe in the security of their online transactions.

Engaging Customers

Engaging Customers

Buying behavior and habits are changing drastically. Users strive to make informed decisions and seek information on products across multiple platforms. Correspondingly, eCommerce businesses should adapt to address the needs and requirements of modern buyers.

What exactly can retailers do to keep up?

Providing a secure customer experience is essential to attracting consumers. The robust identity verification system will help:

  • Guarantee a smooth omnichannel customer experience;
  • Streamline order fulfillment;
  • Enhance cybersecurity;
  • Drive visitor conversion.
What Makes Identity Verification Vital for eCommerce
As highlighted earlier, the retail industry suffers a lot from online fraud. Thus, the global industry losses due to online payment fraud comprised about $20 billion in 2021. Compared to 2020 ($17.5 billion), the number represents over 14 percent growth.
How can an identity verification system protect e-commerce organizations from fraud?
Alleviate the risks of payment fraud

As fraudsters are deploying increasingly sophisticated tactics, retailers become more exposed to cyber-attacks threats. Advanced identity verification methods help to minimize, if not eliminate, the risks of payment fraud. Modern solutions employ a range of techniques aimed to confirm the authenticity of a user. Therefore, buyers can feel protected and assured that their personal information stays untouched.

Counter credit card frauds

The stolen credit card transactions are responsible for a significant part of payment fraud in eCommerce. When fraudsters gain access to the information from the user’s account, they obtain an opportunity to make illegitimate transactions.There are plenty of forms of identity verification that help counteract fraud with credit cards. Modern solutions can perform the following:

  • Data extraction from documents – when a customer uploads a picture of their physical ID, and the system extracts the data from it with the following processing and verification;
  • Liveness detection, when users are asked to take a video of themselves to check their ID;
  • Watchlists auto checks, when the system automatically scans for forged documents to explore whether a customer has a suspicious background.
Protect business transactions
It is not only the customer that retailers need to verify and protect during their activities. Business operations require collaboration with other entities, which should also be trustworthy to avoid inflicting trouble. Therefore, identity verification systems can be applied to ensure that the company your business is going to cooperate with is legitimate and genuine and is not involved in financial fraud.
Why KYC is the Best Solution
for Retail & eCommerce Industries
KYC from KYCAID is a reliable, fast, and accurate solution for retail and eCommerce organizations. The verification procedures involve the most advanced methods and tools to ensure adequate results and minimize the time necessary for checks. If the system detects the slightest risk of collaboration with a person or organization, it will instantly notify you.
Get a free demo
Kycaid Logo
Welcome back
Not a member? Sign up
Forgot a password?
We are glad to see you again :)
Kycaid Logo
Create an account
Already a member? Sign in
The password must contain at least 8 characters, at least 1 uppercase letter, 1 lowercase letter, 1 special characters and 1 number without spaces.
Start and improve your business just in one click :)
Kycaid Logo
Forgot password?
Remember password? Sign in
We glad to see you again :)
Password Recovery
Kycaid Logo
Reset a password
password reset!
You can now use new password to sign in to your account
Oops =/
Don’t wait anymore!
Kycaid Logo
Please confirm your account by entering the authorisation code sent to [email protected]
Email verification