Customer verification is a process that is used by businesses with online products, services, or content to ensure that the information provided by their customers is correct and that the customers are who they say they are.
One of the most important benefits of customer verification is that it allows businesses to comply with government laws and regulations and adhere to guidelines set by regulatory bodies. Additionally, customer verification helps reduce risks of fraud or identity theft, as well as costs and expenses arising from incorrect or erroneous information provided by customers.
At the same time, customer verification helps protect users from fraudulent activities committed by other users and helps keep the business’s customer base secure from bad actors.
For example, customer verification allows businesses to make sure that the customer is not a crook, but also to make sure that the delivery address for products or services was properly provided by the customer. In addition, customer verification allows businesses with age-restricted products or services to make sure their customers are old enough before the products or services are purchased or delivered.
This not only saves against fraud losses but also eliminates the cost of delivering products or services to the wrong address.
Customer verification also helps businesses comply with “Know Your Customer” (KYC) guidelines and anti-money laundering (AML) regulations in order to avoid fines and penalties from law enforcement, regulatory, and other governmental organizations.