How to Fight Online Money Scam with Face Verification

How to Fight Online Money Scam with Face Verification

Even though businesses moving online is a convenience for everyone but it has led to an increase in fraudulent endeavors. The scammers have become more sophisticated in hacking and falsifying their identity in scamming not only the people but the businesses as well. Online dealings are done without physical presence and there is no way of knowing the person’s identity or legitimacy of business online which can easily return in an online money scam. An online identity verification process must be implemented to stop these fraudsters. The best way of verifying the identity would be to use the face verification process. The face verification process can be done to comply with the KYC policies and it can also help to prevent scams in the businesses.

What is Online Money Scam

Along with the individuals, now businesses can also be a victim of online money scam. In order to carry out the scam, fraudsters have fake websites and emails that trick the individual or even staff into giving out important information like credit information or passwords and this information can be used in stealing money, making illegal transactions, or transferring the funds.

Even e-commerce businesses have been scammed with stolen credit card information. While making online payments, the card does not have to be present and only card information is required. This way when thieves make a large order under someone else’s identity, the victim can request the bank to reverse the transaction. Meanwhile, the business will face not only the loss of product and money but they also have to face a large amount of fine for not properly verifying their customer. This can also result in customers claiming to have their identity stolen and use that to apply for chargeback falsely.

Nilson Report carried out a study on worldwide card fraud that states since 1993 the credit card fraud has increased every year and especially after 2010 the increase has doubled and it is expected to increase more from 2019.

Face Verification as a Solution

It has become quite a necessity to fight these online money scams. This is why businesses are required to comply with KYC regulations. KYC regulations require businesses to properly identify their customer to be certain that they really are who they are claiming to be. But since these online money scams are done through the use of technology, it would be better to use an automated face verification solution in identifying the customer.

Face recognition technology can be used as a biometric authentication as well. How it works is that the customer has to register their personal information with their ID card and a picture. Then whenever the customer has to make a transaction, they are required to submit their live selfie online. With 3D depth detection, the authenticity of the picture is checked to see if the picture is real and not taken from a screen or an old photo. Then the picture is matched with the previously submitted ID document picture to verify the identity of the person. If the picture does not match, the system will alert the business of the risk of a scam.

Face recognition technology uses artificial intelligence to verify the face with:

  • Face Matching

In this process, the picture of the person is matched with the ID document to see its authenticity.

  • Liveness detection

Liveness detection can verify the face through some small facial movements to detect if the person is real or not. It can even detect a printed picture or face mask used.

  • 3D depth perception

In this process, the video is screened deeply for facial features and skin texture. It also checks the contour points and edges of the face to see its authenticity.

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