The technological revolution has radically transformed every industry in incredible ways. They protect against security breaches, identity theft, document forgery, fraud, scams, phishing, and financial crimes. Biometric identification is one solution that has emerged to verify customers and protect online businesses from financial losses. Every online company registered in e-commerce marketplaces should ensure an efficient biometric authentication system to boost its security apparatus.
Growing Significance of the Online Commerce Industry
The number of online buyers has soared during the past few years due to the rapid digitization of every sector. More specifically, it increased with the onset of the global pandemic 2020. Online purchasers are expected to grow further, reaching a whopping figure of 2.77 billion by 2027. Therefore, online companies selling their products and services must secure the customer database by filtering out potential fraudsters and scammers. They can achieve this feat by taking the necessary security measures during customer onboarding. Identity verification is a crucial know-your-customer step, and it allows businesses to analyze the level of risk associated with customers. Online businesses should use a biometric verification system during customers’ digital onboarding.
What is a Biometric Identification System?
Biometrics refers to the electronic or computerized recognition of natural persons through the uniqueness of their physical traits. Likewise, a biometric system is used to elevate the overall security of an organization. In the case of the e-commerce industry, biometric identification is crucial to deter fraud at the hands of consumers, as well as businesses. It streamlines the know-your-customer and business verification processes. Furthermore, biometrics enable online companies to align with governmental rules and regulations, achieving global regulatory standards.
How Does the Biometric ID Authentication Work?
As mentioned, biometric verification involves the recognition of humans’ physical characteristics. It is an automated process that detects specific human features such as facial characteristics, fingerprints, hand gestures, and voice. This state-of-the-art technology functions by scanning the features and storing the persons’ data in the organization’s database. The data is preserved for future check-ins. When a registered client signs in the biometric system, the organization automatically knows their identity and lets them access it. The most significant aspect of AI-based biometric verification is its distinguished nature from manual identity verification procedures in the e-commerce sector. The latter is performed by providing ID cards and keeping long passwords, which risk getting stolen, hacked, or forgotten. Thus, traditional methods are ineffective, unreliable and unshielded.
Modes of Biometric Verification in E-Commerce
The e-commerce sector greatly benefits from biometric user authentication since it operates entirely via the web space. Therefore, various biometric modes authenticate the users to boost the integrity and security level of the e-commerce realm. They are listed as follows:
Fingerprint biometric verification is the oldest and most common type. It functions by recognizing finger patterns that are unique to every individual and cannot be forged or copied.
- Facial Features
Facial recognition is another, much widespread and most accepted means to verify users. The web-based businesses and marketplaces detect the facial characteristics of customers’ faces, such as eyes, nose, mouth, and even facial expressions. This technology serves as a convenient and swift way to access the user account.
- Iris Recognition
This technology is the latest addition to biometric identity verification services. It works by recognizing the uniqueness of the human eye. It identifies the region around the eye pupils and saves the captured data. The e-commerce industry must adopt this revolutionary technology to transform its functions radically.
- Voice Pattern
Recognition of voice patterns is another biometric verification method used in different sectors. A company’s database stores the voice of every individual during the client onboarding process. However, voice recognition is less reliable than other methods because human voice can now be manipulated through artificial intelligence easily.
These types are used for different purposes. For instance, online businesses register customers through one of the above-cited biometric identification methods. Similarly, the e-commerce platforms, such as Amazon, or other small-scale markets, onboard online business companies. They also record the biometric data of business owners and maintain it in their database.
Fraud Deterrence Through Biometric Security System
Online businesses have become a target of fraudsters who mislead them. The most common fraud technique is registering wrong identity information, such as an incorrect address. Individuals create fake accounts on e-commerce businesses. They place orders without verifying their addresses and identity data. Thus, the items get delivered to the wrong addresses resulting in substantial financial losses. This also damages the company’s reputation and integrity. Therefore, biometric recognition is immensely crucial for e-commerce businesses to secure themselves from non-serious customers, imposters and fraudsters.
Similarly, the e-commerce markets, local or international, should ensure their security by verifying all the businesses through a biometric system. It is critical because false home-based businesses get registered on these platforms. They are not government-authorized and scam customers by taking money before delivering orders. This leads to consumer fraud and scams. Online marketplaces may face legal consequences and financial compensations, significantly damaging their public image.
In a Nutshell
To conclude, biometric authentication technology is indispensable for the e-commerce industry to ensure fraud deterrence and compliance with financial regulations.