What Risks Industries Will Have To Encounter If They Lack Age Verification?

Many online companies offer age-oriented services that are supposed to be accessed by customers of appropriate age. However, the technological advancements have made things easier for minors to illegitimately access the products and services that are not for them. Minors simply provide fake credentials and upload their elders’ documents to dodge the age verification processes. Therefore, industries need robust solutions for restricting minors and ensuring reliability. 

Age verification solutions have a variety of use cases from e-commerce to the tobacco industry. Furthermore, industries are mandated to ensure KYCC compliance which has increased the need for online solutions. Also, the conventional methods are less reliable because digital age validation methods offer a set of encrypted steps to back the industry’s legitimate operations. The blog covers the differentiation between digital and conventional ways of verification, the set of steps, and consequences in case of lack of age checks.

Why Digital Age Verification is Better than the Manual One?

As Shufti Pro Funding highlights, digital age verification services have taken over conventional practices. From tobacco, liquor, and alcohol stores to e-commerce industries, age validation has become crucial to restrict minors and prevent criminal manipulation. Previously, underage customers were easily verified when they stepped into the physical stores, however after industries shifted online, the verification has become somewhat tricky. As per the standards set by Food and Drug Administration (FDA), the set age for buying and selling tobacco, liquor, and alcohol is 18. Therefore, digital businesses need robust solutions for im-time verification.

These regulations are equally applicable to digital businesses as well. However, online platforms mainly just ask for a username, password, and date of birth without requiring supporting evidence for getting the age verified. Hence, to combat these instances from happening, industries need to require real-time selfies or videos along with pictures of authentic govt-issued documents. After submission, the AI-backed technology will extract the required information using OCR, validate documents, and verify identity in minimal time. 

Moreover, with the evolution in biometric technology, industries can verify customers with more than just documents, they can carry retina and vein pattern scans while mapping the face features. Ultimately, the system will authentically verify the customers’ identities in real-time.

How Does the Encrypted Age Verification Online Process Work?

Age Verification online solutions enable industries to onboard legit customers while preventing fraudulent attempts and criminal concerns. Moreover, they verify customers in real-time to ensure that no minor is registering on the platform. Furthermore, it consists of the following steps:

1. Data Entry

In the first step, the customers are asked to provide their identification details in the online form presented on the screen. For instance, full name, proof of address, and date of birth.

1. Submission of Supporting Documents

After the successful submission of information, the customers are asked to upload supporting documents as evidence for the identity claim. The end-users then upload photos of ID cards, driving licenses, and passports for identity proof. For proof of address, the end-users are required to upload utility bills, rental or ownership agreements, or credit card bills.

1. Extraction of the Required Credentials

Moving on, the online age verification solution uses OCR technology to extract relevant and required information. Also, it carries out authentic checks on the provided documents to detect forgery, if any. 

1. Verification of Provided Data and Displaying Results

After extraction and validations, the system runs identity scans to verify age and if the customer is successfully verified or not, the system displays the results on the screen of end-users. 

Absence of Authentic Age Checks – Consequences Faced by Industries

The absence of a robust age verification process can lead to non-compliance and compromising of the whole reputation. Simply put, this will increase the chances of minors accessing AO content and services. 

Increased Chances of Non-Compliance Penalties 

As per Shufti Pro News, authorities have put forth GDPR which applies to every business and industry regardless of what they offer. This regulation covers the privacy and security conversion of both customers and industries related to record-keeping. The regulation is important for industries for age verification and failure in compliance can lead to hefty fines of $22.5 million. However, digital solutions enable the industries to authentically get the age verified while minimizing the chances of penalties.

Exposure to a Compromised Reliability and Reputation 

Industries claiming to be reliable are all about ensuring a positive customer experience. Clients’ satisfaction and experience onboard play a pivotal role in ensuring the improved reputation of any business. Therefore, industries should invest in digital age verification solutions to restrict minors. Ensure authenticity, improve security, and uplift the company’s reputation. 

Final Verdict

Age verification online services have powered by artificial intelligence which helps businesses to comply with KYCC. Global age check regulations such as the GDPR, FFDCA, and others. Hence, the digital services are reliable and guard the business’s operations.