Excerpt: There are lots of sound reasons why a stricter ID verification system makes sense in your company including improving the customer experience and security.
Security is paramount in any business but there are solid reasons for having a stricter ID verification process in place for a small business. With technology increasing and the need to maintain robust business continuity, the incidences of hacking and scams is rising so having strong systems is vital. Here's why you need to look at stricter ID verification.
1. It Improves Customer Experience
Your customers are a priority. When they use your website or give their data to you, they need assurance it will be kept safe and secure. Having a strict ID verification system in place helps protect against fraud and gives the client the assurance of knowing you take their personal information seriously.
It also helps you know your customer. If you have staff that visit people's homes, knowing there are strict ID processes in place is reassuring to the public. But ID verification goes a lot further than a name check. These days, biometrics are a vital part of fighting the battle against crime in a technological and automated world.
2. Criminals Are Getting Smarter
A big reason for having strong ID verification is to stay ahead of criminals who are increasingly sophisticated. Scams and cybercrime are on the increase, and they are devastating to customers and businesses. What this means for businesses is that staying ahead of the game is vital, so the system can be as secure as possible.
A factoring company, for example, will need to ensure robust systems are in place for the automated processes used. Using technology such as biometric identification and other security checks will also help keep a business secure and avoid fraud. The days of having simple checks are over and advances in technology mean you can be better protected.
3. Know Your Staff
Another solid reason for having stricter ID verification is assurance your employees are who they say they are. Your staff have access to records, budgets, personal data and more. You need to be assured the person you are employing has the correct credentials, qualifications, and is the person accessing the system, for example. Invoice factoring needs to have very tight ID verification processes to ensure it is done correctly and there are no opportunities to send fraudulent documents. Using technology such as biometrics helps with this as does rigid checking processes.
4. Reliability Protects People and Businesses
Sometimes a business thinks it has an ID system in place, but is it one that is secure? In recent years, there have been some significant hacks on businesses that have caused damage and financial loss to a company. Inevitably, when this happens, questions are asked about security. To protect your business, having up-to-date and secure ID verification in place for a range of processes will help you stay safe.
5. Insurance Requirements
Having business insurance is a standard requirement. Claims for security breaches are commonplace so insurance companies are increasingly tightening up their clauses when selling a policy. More and more insurance brokers require a business to have processes in place for stricter ID checks. It's very simple. No process or inadequate arrangements in place will void a policy. Check the small print and make sure you are covered.
6. Data Protection Laws
If you handle customer data, you are duty-bound to protect it and prevent it from falling into the hands of criminals. Making sure your staff are trained is vital but so is having strict ID checking processes. Some data protection laws make it illegal to share data without permission and others will prosecute in the case of a serious data breach. Making sure you have the best system to protect your company will give others assurance and avoid you facing a legal battle because of a lapse in security.
7. Due Diligence
One of the most important reasons for having secure ID checks in place is to have due diligence around finance programs and other business processes. It is important to know your customer and to have some profiling in place so you can quickly pick up when something is outside a regular transaction. By using a system that can detect irregularities you help protect the customer as well as your business from fraud and financial loss.
8. Managing Risk
Your business, like others, will be managing a level of risk and will need to assess the severity of any risks. Data security features are frequently on risk registers, so by having stricter processes in place including training, encryption and ID verification, you are putting into place some good measures to protect the company.
By working to mitigate data breaches and fraud through having ID verification and other processes in place, you will have the confidence of customers and protect your business from damaging hacks and scams. Take some time to review your security and the technology that will make a positive difference to your business.
