Many of the businesses are still unaware of what age verification has in store for them. Gambling firms in Uk paid hefty fines due to gambling and money laundering conducted on their sites by the minors.
Considering the situation, regulatory authorities have introduced strict regulations related to AML and age-confined selling to eradicate money laundering and gambling addiction of minors.
Businesses must develop in-depth knowledge of age verification, its methodologies, and benefits as a result of rigorous modifications in verification regulations. Several firms need to include age verification technology in their systems for various reasons.
What is Age Verification?
It is a procedure in which the identity document of the customer is screened to validate whether the age provided is authentic or not. The process can be performed manually or via an automated process. Manual verification has become obsolete now as it is costly and prone to human errors. This is where age verification came as a ray of hope. Many industries now use this verification solution to validate the age of the customers remotely no matter in which corner of the world they are.
How to Perform Age Verification Online?
Age verification is a quick procedure that results in no time, saving time and efforts of the fraud officer as well as the compliance department.
- The customer is asked to provide their date of birth and show a government-issued ID card or other identity documents bearing DOB such as a driving license, passport, etc.
- The system after screening the document matches the date of birth on the document with the one provided by the user.
- When the age is verified, results are provided to the end-user and are stored in the back office.
Why Businesses Need Online Age Verification
Here are all those reasons why any company needs age verification.
One of the major reasons why any company requires to verify the age of their clients is KYC/AML compliance. In several countries such as the USA and the UK, online age verification has been made mandatory for several industries. If the organization doesn’t comply with the KYC regulations, they are imposed with heavy penalties. Regulatory compliance promises the company in gaining market value and generating great revenue.
Corporate Social Responsibility
Businesses that offer age-restricted items might utilize age verification to demonstrate their dedication to the public good. Daily, children die as a result of the harmful use of alcohol and drugs; in 2015, 442 kids died in the United States as a result of a drug overdose. Alcohol retailers should utilize age verification to help reduce the number of deaths caused by underage drinking.
It will assist the liquor store in establishing a reputation as a regulatory-compliant and socially sustainable enterprise.
Risk of Fake Identities
Children frequently use their parents’ or elders’ identification cards to make online purchases. If a company does not utilize identity verification in these situations, it risks losing its credibility and facing sanctions.
Identity thieves who exploit the identities of others to obtain free services are another source of risk for some firms. Needy persons are frequently provided benefits such as pensions and old age funds. Criminals may create false identities in order to illegally obtain those benefits.
Businesses that Require Age Verification Solution
It is a misconception that online gaming sites need to verify the age of their clients but the fact is that performing KYC, and KYCC is a dire need of every business.
- It helps the gaming sector in retaining approved customers and keeping minors away. Moreover, staying compliant with KYC, including age verifications helps the gaming sector avoid hefty fines.
- Age verification is a frictionless experience in the e-commerce sector where it helps mitigate the risk of selling products to minors.
- In the pharmacies and hospitals, it ensures that the age-exclusive drugs are not purchased by under-aged clients.
- NGOs and Government pension funds perform age checks to ensure that the services are offered to authenticated senior citizens.
- It can be used in e-voting to reduce the hassle and cost of the election process. Furthermore, it eliminates the risk of sophisticated fraud in the elections.
Online age verification isn’t going away, because of its greater awareness and the fact that it’s now on the government’s agenda. Businesses are increasingly recognizing the importance of preventing minors under the age of 18 from accessing age-restricted goods and services. And now is the moment to act; companies that do not move quickly enough may not only suffer reputational damage but may possibly go out of business if a substantial fine is imposed. Thus, performing KYC including age verification is the only solution to protect the company and children from purchasing products or stumbling across content that is age-restricted.