How COVID-19 has forever impacted the identity verification industry

How COVID-19 has forever
impacted the identity
verification industry

ID verification during the pandemic

The global pandemic has brought about widespread impacts, affecting employment, mental health, and physical well-being. In this article, we delve into its specific repercussions on the Identity Verification Industry.

Identity verification industry faced extensive impacts. Follow us on LinkedIn for crucial news updates vital for businesses and individuals.

An increase in the need for digital transactions gave fraudsters the opportunity to take advantage of an already-stressful situation.

The surge in Australians seeking early superannuation withdrawals created a potential for fraud due to the lack of authorization control.

Australian Financial Review Report

In May 2020, as reported by the Australian Financial Review, the Australian Federal Police initiated an investigation into a “small” number of fraudulent applications. Subsequently, this action came after the Australian Taxation Office uncovered instances of personal details being hijacked, all in a bid to defraud the program. Moreover, the authorities were prompted to act due to the increasing sophistication of these fraudulent activities.

Fraudsters stole tens of millions of euros in North Rhine-Westphalia due to a lack of formal citizen verification procedures, unlike other German states that required users to upload documents or fill forms.

COVID-19 challenges in business

What’s more, COVID-19 has created additional challenges for businesses in how they comply with customer verification obligations under the anti-money laundering and counter-terrorism financing (AML/CTF) regime. Luckily, AUSTRAC put together some information over on their website and they also introduced a new customer verification AML/CTF Rule to support the initiative which you can read about here.

COVIDSAFE app, by the Australian Government, accelerates virus contact tracing. Aimed at 8 million downloads for safer and quicker nationwide restrictions.

The Importance of Digital Identity Verification in the Pandemic

The pandemic emphasized the importance of digital onboarding in various industries, highlighting its value for businesses under diverse circumstances.

In solidarity, Scantek aims to assist your business in combatting the effects of COVID-19. Our web and mobile application can save you time and operational costs by providing instant customer identity verification and streamlined onboarding. During times of uncertainty and self-isolation, the crucial role of digitalization is emphasized, with Asia Money noting that digital banking is now deemed indispensable.

We hope this article helped to shed some light on the situation for the identity verification industry. Scantek is here to help you every step of the way so reach out to the team at any time for a free demonstration.

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