Biometric Security - The Way Forward to Improve Online Retail Shopping

Amazon, eBay, Ali Baba, and other giants are changing the trends of online shopping. They are making digital platforms a new normal for customers to visit for their retail needs. Online shopping and payments may seem convenient but they are vulnerable to various fraud risks including the exploitation of confidential information. Similarly, synthetic identity fraud is another threat in the e-commerce industry that involves impersonating legitimate buyers and making purchases by using their accounts.

Retail sales reached $26 trillion in 2021, an upsurge of 9.7% from 2020, and are further forecasted to see more growth. Hence, for secure online shopping, e-commerce platforms require biometric security solutions. Read on to know how these IDV services benefit the retail sector. 

Biometric ID Verification -- Proactive Measure for E-Commerce Problems

Online shopping is the most popular trend among the masses due to its features such as reliability, convenience, remote order placing, and hassle-free deliveries. While the retail sector is bringing orders to customers' doorsteps, they are facing a high risk of identity fraud. This later results in failed shipments, additional address correction charges, and chargebacks. Payment scams and camouflaged purchases are more threats that collectively expose retail stores to regulatory scrutiny. 

Legal authorities have made Know Your Customer (KYC) a liability for e-commerce sites to mitigate the digital onboarding of criminals. In order to conceal their funds, fraudsters target retail stores as they lack adequate biometric recognition checks. It becomes easier for criminals to flow their illicit funds while making high-value purchases. 

AI-powered biometric screening services provide real-time customer verification by analyzing their distinct biological and behavioral features. Some e-commerce sites offer restricted products such as liquor, tobacco, website membership, and others. This requires such platforms to integrate biometric security systems to ensure customers fall under the age limit.

Compliance with KYC and AML Regulations

Criminals are rapidly adapting to digital transformation while enhancing their capabilities to exploit e-commerce sites. By committing phishing, deepfakes, spoofing, and ransomware attacks, fraudsters target retail stores to exploit legitimate buyers. Moreover, this helps them make purchases by using someone else's payment details. 

E-commerce sites are on the verge of facing a tremendous increase in the flow of illicit funds, identity fraud, and other risks. They need to bring in efficient biometric ID verification as a countermeasure. In order to provide a secure and enhanced customer experience, retail stores need to double their efforts. For this, they should also monitor transactions to ensure they are facilitating criminals in concealing their proceeds of crimes. In this case, biometric security solutions help retail stores prevent criminals by validating payments through facial feature analysis. 

Retail stores failing to comply with KYC/AML regulations will not face serious legal repercussions but also experience reputational damages. In worse scenarios, they will have to pay hefty penalties and can end up under sanctions. On the contrary, AI-powered biometric recognition will mitigate fraudulent onboarding. By deploying real-time analysis and facial feature validation during digital onboarding, these IDV solutions enable e-commerce sites to place preventions for criminals. 

Benefits of Integrating Biometric User Authentication for Retail Stores