Age verification to protect businesses from fraud

With the sphere moving towards the digital world and smartphone devices, every child is now vulnerable to the digital world. Whether it's about watching youtube videos and playing video games online, minors are continuously using smartphones and tablets. On the internet, everyone has the freedom of staying anonymous. Staying unidentified on the internet allows anyone to get inscribed on any site using any identity data.

 Usually, to register on any website, we require an email address and some credentials like name, gender, age, etc. Any minor can authorize a free email account and utilize it for age-restricted websites such as dating, gambling platforms, cannabis, and drug sites by misrepresenting their age and identity. Similarly, the same thing goes for adults as well they can authorize services and items by misrepresenting their age. 

It is assumed that by the end of 2021, 2.4 billion will conduct a purchase and services online. Therefore, during COVID’19 situation when the whole world is under self-imposed lockdown, people are staying home and making transactions and purchases online, more people are anticipated to shop online then assumed previously. 

Age verification:

The procedure of age verification in which the ID document of the client of an organization is screened to authenticate if the age data provided is true or not. This procedure can be carried out manually or through an automation process. Manual verification is not practiced commonly because it has an increased risk of human error and the process is long. To resolve this problem online age authentication is used commonly by many organizations to help remote online age verification of clients from anywhere around the world.  

Listed below are the reasons why organizations need to verify the age of their clients :

1. Regulatory compliance:

One of the important reasons why organizations need to authenticate the age of their clients is regulatory compliance. Regulatory authorities in several countries like the UK and USA have made age verification vital for some organizations and large amounts of fines are implemented in case of non-compliance. It helps organizations requiring credit rating and market value. 

2. CSR (Corporate social responsibility):

CSR includes the operations and activities of an enterprise that don’t acquire financial gain but yield it in enhancing its market value and brand image among the masses. Organizations that sell age-restricted items can use age verification to show their devotion to the benefit of the masses. Liquor sellers should implement age authentication checks to play their part in reducing deaths due to the minor consumption of liquor.  

3. The increase in fake identities:

Often the minors use the ID cards of their adults to conduct a purchase online. In such circumstances, if organizations do not utilize age verification it might end up losing their value and will also face heavy fines.  

Another way of risk for some organizations is when fraudsters use the identities of other people to get free services and products.