Identity fraud and minor-based risks are making headlines every day. Industries lacking accurate age verification checks are the most prone to these threats. This is because digitization is easing minor access to industries’ platforms. They use their elders’ information to bypass the verification process and make purchases. Similarly, minors onboard Age-Oriented (AO) platforms by providing fake information and easily solving the puzzles.
Therefore, industries need to employ an authentic age verification solution. The AI-powered tools verify customers by verifying their documents, analyzing selfies, and detecting liveness. If minors are using fake information, the system will identify them by analyzing their background and real-time selfie. The blog covers how the process works and the risks that industries will face if they don’t verify age.
Online Age Verification – Working Mechanism of the Process
Minors’ bypassing the age verification process to illegitimately access online platforms will expose them to several consequences. For instance, digital manipulations like inappropriate grouping, blackmailing, and other criminal threats. To prevent these consequences, regulatory authorities are forcing strict regulations.
As per the standards industries like tobacco, e-commerce, social media, and alcohol should accurately verify age of their customers. Online age verification solutions help these sectors to safeguard operations and restrict minors’ access. Ultimately, they can ensure compliance by incorporating the following steps:
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Submission of Information
In the first step, the system asks the customers to submit their information in the online form. It includes full name, date of birth, and address.
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Uploading Supporting Document
After the submission of information, the age verification system asks the end-user to upload supporting documents that act as evidence. Documents include government-issued ID cards, passports, and driver’s licenses.
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Data Extraction
The AI-powered age checks then extract required information by using OCR technology. The details include mainly the date of birth for age identification.
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Verification and Results Display
After data extraction, the age verification system runs analysis scans on both the documents and information. Moreover, it uses biometrics to detect liveness and ensure that the customers are behind the screen. The system then cross-verify the details and displays results on the screens of end-users.
Consequences Industries Face in Case of not Performing Age Checks
Getting the age verified is a regulatory obligation for every industry to protect minors from falling prey to online manipulations. The AI-powered age verification solutions here help the industries accurately identify minors. This way they can ensure regulatory compliance while securing their overall reputation. The regulatory authorities are bringing in effective standards to protect their greatest assets – minors. As per these standards, industries should not only identify registering customers but also verify the existing ones.
To ensure industries stay compliant with the age verification regulations, authorities are imposing hefty penalties. Furthermore, this does not end here, the industries will further have to face the following consequences if they fail to satisfy the verify age standards.
Increased Chances of Fines
Industries offering AO products and services are mandated to adhere to the General Data Protection Regulation (GDPR) guidelines. The age verification standard mandates every industry regardless of what they offer to secure the data of customers. Similarly, authorities mandate e-businesses to verify age of customers during onboarding and also keep track of them.
Otherwise, industries will face hefty penalties and worse comes worse, ending up becoming a part of sanction lists. However, by incorporating age verification solutions, industries can prevent this from happening.
Financial Loss
Industries like e-commerce are facing the most difficult situation in delivering the products. This is because the minors use fake information to place orders and are mostly returned when delivered. This causes e-commerce businesses to face hefty chargeback amounts. But with accurate age verification in place will prevent such instances.
Similarly, parents of minors accessing AO platforms also face financial loss. This is because minors escaping the age verification online process are unaware of the consequences and fall prey to criminals. They then blackmail ultimately resulting in huge financial losses. However, robust age verification solutions will help industries to minimize these risks.
Reputational Damages
Shifting businesses’ operations online is not enough to enhance customers’ experience and uplift reputations. Failure to comply with the verification regulations also brings reputational damages. Therefore, industries need to develop an effective mechanism so that they can onboard the customers who satisfy the age requirement.
In a Nutshell
Age verification solution helps industries to ensure KYCC compliance by accurately identifying customers. Minors use their elders’ credentials and payment details to dodge the age verification process and onboard AO platforms. Therefore, industries should employ authentic verification online to protect minors’ from falling prey to digital manipulation. Ultimately, industries can ensure regulatory compliance and uplift their brands’ reputations.
