Identity theft is one of the fastest growing crimes both in the United States and around the world. During difficult economic times, some people get desperate, and they can resort to stealing information in order to access your money. When a consumer has his or her information stolen, that consumer will typically be made whole if any money is spent. How that process plays out depends heavily on how companies verify the information of customers. Those companies that use an identity verification service typically have more protection against chargebacks and other forms of liability. Those that don't confirm the identity of customers can be left holding an empty bag. Here's what business owners should know.
Chargebacks are a real issue
If there is one area where consumers have an advantage today it is in the chargeback process with their bank and card provider. If something looks wrong on a person's bank statement, they can easily file a claim with their card provider to get the money back. The card provider will then forcibly remove the money from a merchant's account if they feel the customer's claim is legitimate. While there are policies that must play out, merchants can have little recourse in this process. You must take steps to prevent yourself from losing money during this process.
An identity verification service can prevent fraud
Identity verification services are all about keeping people from being victimized by fraudsters. Importantly, merchants can use these services to ensure that the person using a card or bank account is the actual owner of that card or account. Thieves are getting better and better at stealing money today. The good news is that technology has kept up with these people for the most part. Today, thieves are up against strong identity verification procedures. The key is for businesses to make use of the technology that's out there to protect themselves.
Taking special precautions for online sales
It should come as no surprise that much identity theft takes places on the Internet. People skim credit card information off of readers before using that information to make their own dummy card copy. Others use the card information of a relative or friend. Without proper security procedures, it is incredibly easy for any person to access the cash of another person. Those merchants that take payments over the Internet must have in place a system that confirms identity. Often, an identity verification service will require the customer to input information like a Social Security number. In other cases, it will require two-factor verification. This helps to protect the merchant from both fraud and friendly fraud.
Merchants today have a responsibility to put in place barriers to fraud and identity theft. In addition to protecting your business from fraud, you'll also look more legitimate to customers who have come to expect strong security measures. Don't you want to do everything in your power to ensure that fraud and theft don't take place on your watch?