What it Takes to Create Trusted Identities in a Digital Economy

Acuant CEO, Yossi Zekri, was interviewed in this exclusive with The Paypers. You can read the original here. Acuant was also a featured solutions provider in The Paypers Fraud Prevention and Online Authentication Report 2019/2020.

 

If we look at the current challenges faced in the identity-based transactions ecosystem, what risk issues are the most prevalent and why?

We all see the steady headlines regarding major data breaches and hackings that have penetrated leading corporations, which has yielded significant fake identities. Additionally, the rapid pace at which we have become a mobile-first world is now presenting new fraud challenges that businesses must quickly address.

AI-based identity fraud, including deepfakes and video replay, is also growing. Elementary identity proofing including passwords, social security numbers, and knowledge-based authentication are no longer viable for businesses who want to meet compliance regulations such as KYC and AML.

Synthetic identity fraud is another one to watch, and according to McKinsey, it is the fastest growing type of financial crime in the US, accounting for 80% of all credit card fraud losses. With synthetic ID fraud, there is no person to trace or collect from, so banks and lenders must take steps to prevent it. Financial institutions should look beyond a credit score and bring in third-party data such as social media accounts, cell phone records, previous addresses, email addresses, and phone numbers, while seeking a high degree of consistency for those attributes and ensure they are tied to a proven identity.

What must companies keep in mind when employing identity verification solutions?

There are no global standards today in identity verification, but there are solutions that offer a level of certainty for every level of risk. It is up to institutions to decide the amount of security they are requiring, and up to consumers to decide how much friction they are willing to bear. Consumers are more willing to bear it for things like opening a bank account as opposed to making a low value purchase on an app.

Establishing a trusted identity is the base for the digital identity of the future — and this is at the heart of what Acuant does. We believe you must start with document authentication to establish a trust anchor to set a level of trust associated with the initial identity/person. Afterwards, you can layer on specific solutions to further perform additional identity proofing (e.g. biometrics, device fingerprints, behavioural, data points etc.).

What role does the remote identity verification play in improving customer experience? Moreover, what are the best methods for verifying an identity remotely?

Being able to transact from anywhere at any time in today’s ‘On Demand’ culture has led to opportunities that can increase revenue, but also led to increased fraud attempts.

Verifying identities remotely creates additional challenges for businesses. They must be able to establish genuine presence, taking into account users’ risk appetite, and offer a diversity of solutions based on the type of transaction and the problem being solved. Once a trusted digital identity has been established, it paves the way for it to be re-used with less friction and increasing trust.

We recommend the use of multi-factor authentication, which can be quite swift and seamless today. The best methods start with capturing and authenticating a quality image of an identity document and then binding it to the person using the document with some form of biometric such as facial recognition with strong liveness test. For remote transactions this can be done via desktop or mobile device. Image capture features such as auto-cropping and glare detection can not only boost user experience, but also significanlty improve results 100%. Solutions must also be in real time, to decrease abandonment rates.

What is an identity corroboration hub?

An identity corroboration hub is the ability to build and a true digital identity. This means that you have established a verified identity via a trust anchor, tied it to a person, and now have access to a trusted identity platform that continuously authenticates this identity/person through real-time monitoring. Gartner has stated that by 2023, identity corroboration hubs will displace existing authentication platforms in more than 50% of large and global enterprises. They also state that there is a growing trend toward orchestrating identity proofing, fraud detection and orthodox credential-based methods that are traditionally used to provide confidence in the identity of returning customers.

The corroboration hub offers tracking and analysis of true identities linking their connections and their activities in real time, while protecting their privacy. This allows for true identity verification at any point in time, giving the ability to pinpoint fraud and also decide when and how you want to verify an identity (with what data points), expanding the scope of identity proofing.

Identity corroboration hubs prevent new account and transaction fraud, account takeovers, identifying the use of stolen or synthetic identities, and enable compliance with regulations such as KYC and AML.

How do AI and machine learning power up the current strategies of customer verification?

Is there any room left for manual checks in the future? Computer software can independently process millions of transactions at a rate unachievable by human experts and is necessary to scale. However, humans can apply their expertise and teach the computer how to spot the issues in the future. Human-assisted machine learning allows the model to improve through constant input and refinement of data with the oversight of a trusted identity expert.

This marriage of AI and human experts passes more good IDs/ customers, while catching sophisticated fakes, and providing a seamless customer experience. The key is to start with an automated solution that uses a strong algorithm, have a relevant data set, then add human oversight. And for cases where 100% certainty is needed or automated review was not able to provide an adequate answer for transaction, there is still manual review of documents by trained forensic experts.

 

Synthetic Identity Fraud Is The Fastest Growing Financial Crime — What Can Banks Do To Fight It?

Glenn Larson is the Vice President of Engineering at Acuant and is a member of Forbes Technology Council,  an invitation-only community for world-class CIOs, CTOs and technology executives. Read his article for the Forbes Tech Council below, or you can read the original here.

 

Synthetic identity fraud is a relatively recent phenomenon that is on the rise. McKinsey claims synthetic ID fraud is the fastest-growing type of financial crime in the U.S. LexisNexis Risk Solutions (via Yahoo Finance) found that “61% of fraud losses for [large] banks stem from identity fraud [and] 20% of the identity fraud incurred by these larger banks is synthetic identity fraud.”

Synthetic fraud differs from traditional identity fraud in that instead of assuming the identity of a real person using their credit, it creates a new identity using a real social security number with a fictitious name, driver’s license and address. How is this possible?

Traditional identity fraud is usually detected and reported relatively quickly because there is a real victim who is being affected. To create a synthetic identity, a scammer simply needs an unused social security number, often from a child. With this fresh social security number, they can establish a new identity with the credit bureaus.

The fraudster starts by applying for a loan with the synthetic identity. Because there is no credit history on file for this person, the loan will be declined. However, the fact the request was made will create a new credit profile in the database, and now they “officially” exist. Then the perpetrator continues to apply for credit at various institutions until they finally get approved — often for a secured credit card or some other product from a lender willing to work with high-risk borrowers.

These scammers are playing the long game: They can take months, even years, to build up good credit with small purchases that they promptly pay off, continuing to legitimize the identity. They use false identification documents, social media and P.O. boxes to make the identity appear real. Over time, they increase their available credit with new cards and higher limits.

Once there is the opportunity for a high payout, the synthetic identity “busts out” by maxing out all credit and disappearing. The Federal Reserve reported that the largest synthetic ID ring detected to date caused $200 million (or more) in losses from 7,000 synthetic IDs and 25,000 credit cards. Synthetic fraud costs lenders more than $6 billion annually, and the average loss is estimated at $10,000 per account.

There are some cracks in the system that have allowed synthetic identities to proliferate. The United States relies on social security numbers as identifiers, yet data breaches have exposed those numbers to those that would do harm. A report from security firm Flashpoint (via PCMag) shows how inexpensive it can be to purchase a social security number on the dark web.

For better or worse, credit bureaus assume the first person to apply for a loan with a social security number is legitimate, and there is no way to validate a number with the Social Security Administration. Also, in 2011, the SSA switched to random numbers, eliminating the geographical distinctions that would help identify fraudulent numbers or users.

Finally, because the number is often assigned to a child, they are less likely to access credit information and uncover the fraud, so it goes unreported for years.

But often the real victim is the financial institution. Synthetic ID fraud accounts for 80% of all credit card fraud losses, and there is no person to trace or collect from. But banks and lenders can take steps to reduce synthetic ID fraud. Early and faster fraud detection is key.

Banks are getting better at looking for suspicious behavior and adding more verification and authentication steps, particularly for digital onboarding and transactions. Financial institutions should look beyond a credit score and bring in third-party data such as social media accounts, cell phone records, previous addresses, email addresses and phone numbers while looking for a high degree of consistency for those attributes and ensure they are tied to a proven identity.

In order to prove an identity, banks can also utilize document verification and biometric screening — tools that can’t be fooled by deep fakes and image spoofing.

These threats are not only continuing to proliferate, but they could be a veritable ticking time bomb. There is an unknown number of synthetic identities currently lurking in the financial system. Until the United States weans itself from the use of social security numbers as identity verifiers, financial institutions will need to take necessary measures to protect themselves from synthetic identity fraud using all the tools at their disposal.

To learn more about Acuant’s identity solutions, schedule a demo now:


The Rise of Self-Service Retail: How to Keep Shoppers Happy While Avoiding Fraud

Last week privately-held retailer Forever 21 filed for bankruptcy. Once a beloved and well trafficked store for the teenage set, the chain is the latest retailer to fall victim to consumers’ changing shopping habits, even as spending remains strong. According to the U.S. Census, retail sales hit a record of $6 trillion in 2018. But shifts in consumer behavior, including an increasing reliance on technology and greater focus being put on convenience, has left retailers on shaky ground.

Shifting Shoppers: Why Savvy Retailers are Driving Customer In-store

While shoppers will never wholly abandon brick and mortar stores, they expect retailers to offer an online/remote alternative. After all, with the convenience of online shopping at the click of a button, it takes a lot to convince customers to make the trek to a retailer to pick out their merchandise. Savvy retailers are investing in self-service models that provide a more convenient and personalized experience alternative to today’s shoppers.

One solution is the introduction of the “buy online, pick-up in store” (BOPUS) channel. A consumer orders online like normal and then, many times, gets free shipping and/or a quicker turnaround picking it up from the storefront. When the consumer comes into the store, they either interact with a self-service kiosk, like the huge Bell & Howell tower at Walmart, or with a store associate. Similarly, this is exploding in the grocery vertical with Kroger and Walmart both being heavy players.

Retail Fraud is on the Rise

Wading into these new offerings with eCommerce highlights a need for identity verification. In the US, fraud attempts have doubled year over year (from 2018) and have tripled since 2017, according to LexisNexis True Cost of Fraud study. Increased mobile transactions, sophisticated synthetic identity fraud, and more digital goods and services sold are driving this fraud increase. Retailers continue to struggle with verifying customer identity.

Specifically, retailers are seeing high losses in “return fraud.” Bad actors are finding or stealing receipts, coming into the store, taking the item off the shelves, and going to the return area to do a fake return. Folks like Home Depot and Walmart are prime targets because their stores are physically so big fraudsters can’t be monitored closely by store associates.

Balancing Shopper Experience with Security

Privacy, security and improved customer service can co-exist in the digital economy with digital identities. Improved customer service can be enabled by technology. There are certain, low risk functions (for example offering kiosks or applications to help shoppers find or purchase items) that can and should be completely automated. This enables employees more free time to be more attentive and provide personal attention to high priority shoppers and tasks. The level of assurance needs to match the level of risk.

Acuant’s Trusted Identity Platform speeds up, simplifies and strengthens processes for in store or digital transactions via cloud, mobile/apps, kiosk & desktop scanners. Retailers can catch fraud and verify age for regulated services and products via instant ID verification and facial recognition, all in seconds.

Want more information on how retailers can prevent fraud and create happy customers ahead of holiday shopping season? Visit us here to learn more.

Verifying Identity In Today’s Digital Economy: A Look At Regulated Retail

Glenn Larson is the Vice President of Engineering at Acuant and is a member of Forbes Technology Council,  an invitation-only community for world-class CIOs, CTOs and technology executives. Read his article for the Forbes Tech Council below, or you can read the original here.

Digital adoption has changed the very nature of business and customer interactions. Just 20 years ago, business was always conducted in person — whether applying for a retail credit card or purchasing alcohol. The rise of mobile phones has changed that dynamic. Now customers can be located anywhere, with very little to no interpersonal communication throughout the transaction.

While customers are thrilled with the flexibility this provides — no need to travel to a physical location and no transaction restrictions during traditional business hours — retailers are left to determine how best to verify customer identity virtually, a challenge that only increases in scope. According to a survey by the National Retail Federation, “92% of companies surveyed had been a victim of organized retail crime (ORC) in the past year.” Even further, “71% said ORC incidents were increasing.”

Retailers are left struggling to balance security with user experience. Research shows that the onboarding process is often the key indicator of the customer relationship. A laborious ID verification process during onboarding often results in an abandoned cart or — worse — a visit to the competition.

Regulated Industries Face Strict ID Verification Legislation 

Regulated industries — like alcohol, gaming, tobacco, vaping and cannabis — require more stringent compliance for verifying customer identity. New federal regulations require that retailers prove they are not selling “age-restricted” products online to customers who are “under the minimum legal age.” Failure to comply can result in steep fines or, in more severe cases, jail time.

The rise in popularity of “vaping” — especially amongst minors — has brought increased focus and legislation on the e-cigarette industry. According to a study by the American Academy of Pediatrics, “approximately 3 million U.S. adolescents currently use e-cigarettes. This includes those who never smoked cigarettes.”

The FDA weighed in on this growing public health concern during a March 2019 address. Scott Gottlieb, outgoing Food and Drug Administration commissioner, shared new age-restriction-related policy for the purchase of flavored e-cigarettes. The purchase of flavored nicotine pods will be limited to retailers and websites that impose age restrictions.

Individual states and counties have taken steps to fight this epidemic on their own. For example, California’s recently enacted Stop Tobacco Access to Kids Enforcement Act, or STAKE Act. Meant to prohibit the sale of tobacco products to anyone under the age of 21, the STAKE ACT mandates that distributors and retailers post a notice at each point of purchase, and it requires online retailers to verify the age of prospective consumers.

Adapting To An Era Of  ‘Customer Not Present’

It’s no secret that mobile commerce has exploded. Forrester estimates that “sales made via smartphones is expected to reach $209 billion by 2022 and in 2018 accounted for approximately 23% of all online sales.”

Rising mobile and e-commerce transactions present challenges in verifying customer identity; however, there are steps retailers can take to minimize risk and add benefits:

• Require Customer Accounts: Taking this step ensures that customers provide adequate, verifiable information about themselves during the initial purchase process only (onboarding), making ongoing purchases much faster and easier, providing the ability to personalize targeted advertisements and marketing campaigns in subsequent client engagements.

• Use Identity-Verification Software: Savvy retailers are adopting online fraud-detection tools like risk-based authentication and new account fraud prevention. Especially pertinent for retailers in highly-regulated industries, identity verification software ensures compliance with mandates and legislation.

• Get to Know Your Customer: Retailers that properly manage customer data — whether it be purchase history or personal preferences — are streamlining the process for future business and creating a “stickier” relationship with their customer base

• Meet Customers Where They Shop: The growing number of global transactions means that it’s more important than ever to provide solutions to identify and protect users on the move. Be mobile! Look for solutions that can streamline the onboarding and information gathering process (eliminate unnecessary typing where possible) on all channels — especially on smartphones — while accurately identifying each customer.

As retailers struggle with the hurdles imposed in identity verification — especially for those in highly-regulated industries — it’s important to keep in mind there is no one-size-fits-all solution. Ultimately, your solutions and practices need to provide a streamlined, balanced and customer-centric approach. How you go about doing that is up to your business and what works best for your customers.

 

To learn more about Acuant’s identity solutions, schedule a demo now:


Digital Identity Is The Key To CX

Glenn Larson is the Vice President of Engineering at Acuant and is a member of Forbes Technology Council,  an invitation-only community for world-class CIOs, CTOs and technology executives. Read his first article for the Forbes Tech Council below, or you can read the original here.

Digital Identity Is The Key To CX

It’s no secret that today’s consumer is experience-centric. Not only have organizations realized the tie between customer experience and revenue, but 88% of businesses view customer experience as a competitive differentiator. Data shows that customers are willing to pay more for a better experience, and often experience trumps both price and product.

Companies like Apple, Uber and Venmo have set the bar for what customers now expect from brands. Not only should the service be fast and intuitive, but personalization has become the expectation of mobile-first users. The first customer touch point is incredibly important as well; a clunky or time-consuming onboarding process can result in frustration or — even worse — abandonment.

Then consider the more than 70 million digitally-savvy millennials who have grown up with internet access and who expect near-immediate response times. Having grown up with access to services like Netflix and Amazon Prime, they value speed and efficiency. These individuals use smartphones to conduct their business, whether for shopping, services or banking. Over the past several years, we’ve seen a steady rise in what’s been dubbed the “experience economy” — attributed, almost certainly, to the buying power of millennials.

A Balancing Act: User Experience Versus Risk

The challenge comes in providing a smooth experience that still adequately protects both the user and the company. There is significant risk associated with exposing personally identifiable information (PII) and the answers to knowledge-based authentication (KBA) questions, which can easily be bought and sold on the dark web. In fact, nearly 15 billion identity records circulated in underground communities in 2018.

Establishing identity in a digital world is fraught with challenges and questions around how to collect, process and manage PII data. With hackers looming large, it’s on merchants to find more secure methods of establishing identity. For businesses, providing the customer experience that clients demand while ensuring security is all about balancing an acceptable level of risk with the smallest possible amount of friction. Here’s how to go about it.

Digitize And Automate Onboarding

That first touch point — customer onboarding — truly sets the tone for the relationship. Today’s customer turns a nose up at a lengthy, arduous onboarding process. No one wants to deal with manual paperwork. You can streamline the process while still keeping risk in check by using technology that captures ID images, data and identity verification in one process.

Omnichannel Is Imperative

Consider the banking industry. According to research from the American Bankers Association, 72% of Americans most often access their bank accounts online. Millennials, in particular, are exploring banks that offer mobile account enrollment and access, as they prefer to avoid visiting bricks-and-mortar branches.

Savvy businesses will empower their customers to transact whenever and however they wish. There are many ID verification solutions available to enable easy onboarding but still enforce stringent security protections. These methods can capture and digitize PII to quickly verify that the person is who they claim to be.

Loyalty Programs + Personalization = Return Customers

Today’s shoppers expect a targeted user experience based on previous behaviors, purchases, likes and even dislikes. Collecting customer data that provides insights into customer preference is one key to achieving customer loyalty. In particular, companies in the hospitality, gaming or retail industries should keep track of customer demographics to offer more targeted experiences. For example, retailers can offer specific product recommendations based on what the customer previously purchased or offer targeted savings/promotions for favorite items.

Enabling quick, automated signup for loyalty programs is also key. Customers are generating and sharing more data than ever, and with machine learning and artificial intelligence capabilities, companies can take this opportunity one step further by allowing for personalization at the regional and individual level. It’s true that some may find this technology unsettling, and there should always be a prominent option in place to allow customers to opt out. But at the end of the day, we know that millennials, by and large, are all-in on highly-personalized experiences.

Vaping and Cannabis Industries are Booming: Learn how to Easily Comply with Age Verification for Sales of Regulated Goods Online, Mobile and On Premise

Mobile commerce, by any measure, is booming. Forrester estimates that sales made via smartphones is expected to reach $209 billion by 2022 and in 2018 accounted for approximately 23% of all online sales. For businesses selling age-restricted products such as tobacco, e-cigarettes and cannabis, selling online is more challenging. Retailers must verify a customer’s age to meet federal regulations. In fact, it is the responsibility of retailers to ensure they do not sell age-restricted products online to people who are under the minimum legal age, and failure to set up reasonable measures to confirm the age of potential purchasers can result in fines and even possible jail time.

New laws that permit the sale of cannabis in certain states have started a whole new industry for online sales and distribution – including home delivery via “Uber” like apps. At the same time, e-cigarettes and vaping are becoming increasingly popular, particularly among teens. In 2018, more than 20% of high school students reported having used e-cigarettes in the last 30 days.

Access to these products is easily available via online sources and online retailers often rely on the purchasers to confirm that they meet the minimum age requirements by simply checking a box or providing a date of birth.  Requiring a credit or debit card isn’t enough for proof of age either, as minors can obtain these cards as well. For today’s boundary-testing and technology-savvy teens, these techniques are not adequate and fail to limit access to age-restricted products. In one study, underage buyers were able to use their real ID and a prepaid Visa card to order alcohol online and have it delivered to their home without anyone verifying their age.

As a result of online and mobile sales of restricted products and the proliferation of these products among minors, the U.S. Food and Drug Administration (FDA) announced in November 2018 that new steps to restrict illegal underage use of e-cigarettes would be coming. One proposed measure would require that online stores implement better age-verification measures – far stricter than the self-verifying measures that are common.

California has already enacted the STAKE Act, which prohibits the sale of tobacco products to anyone under the age of 21 and imposes mandatory steps for online retailers to verify the age of prospective buyers. These steps include matching the customer information to a database of verified individuals and if they cannot be verified requiring the purchaser to submit an age-verification kit with valid government identification.

To better comply with current and potential future legislation while still providing a positive customer experience to of age purchasers, retailers should implement improved online and mobile identity verification solutions, as well as in store when applicable. This will protect them from legal implications and guard their reputations in the communities they serve.

There are now technologies that can help merchants accurately verify a customer’s age using their mobile device or desktop camera in seconds. The customer can simply submit a photo of their government-issued ID for forensic authentication to ensure it is a genuine, unaltered ID. The speed of verification means that legal buyers can be assured of a quick, painless experience. On premise, this can be accomplished with either a mobile device or a scanner connected to a desktop or even a self-service kiosk solution.

For an extra layer of protection with remote transactions or for initial sign up to make recurring transactions easier, merchants can employ facial recognition technology to confirm that the person making the purchase is the same person in the ID. The buyer can take a selfie and compare it to the extracted biometric data from the ID. Again, results are given in seconds. In addition to these offerings, Acuant provides liveness detection which confirms that there is a live person in front of the camera – not a static image. Retailers can also use that information for future transactions (using only facial recognition to verify and transact), as well as for records management and marketing to age-appropriate customers.

While age-restricted products like e-cigarettes should not end up in the hands of children, legitimate buyers should be able to purchase products with ease. At the same time, retailers must protect themselves from fraud and fines due to increasing regulation. Acuant’s ID verification solutions allow merchants can take advantage of the boom in mobile commerce while staying on the right side of the law and delivering a superior customer experience.

 

free download KYC: ID & Age Verification in the Digital Economy

Three Ways to Combat Rising Retail Fraud

Reports show that fraud challenges and cost pressures continue to plague retailers across the U.S. A study from ACI Worldwide projects a 14 percent increase in total retail fraud attempts and a 17 percent increase in value this year compared to 2017. Areas of particular concern are the sharp rise in card-not-present (CNP) and mobile commerce fraud, according to the annual LexisNexis “True Cost of Fraud” report. The number of merchants selling goods via mobile channels, especially digital goods, is growing, but there are significant risks. For each dollar lost to fraud, online merchants can ultimately expect to lose $2.94 in revenue. That number jumps to $3.29 per dollar for m-commerce retailers.

The dramatic growth of mobile sales and the need to acquire and retain customers are driving retailers to move to m-commerce. Millennials are particularly likely to purchase from their mobile devices, but m-commerce transactions are rising across the board as smartphone ownership is at all time high. Half of U.S. adults (51 percent) report making online purchases via their smartphone according to Pew Research.

So what can retailers do to mitigate the risks of online shopping? Here are three ideas to keep identity scammers at bay.

 

 1. Require Customer Accounts

To better know and understand their customers, retailers can require shoppers to set up an account. Taking this step will ensure that customers provide more information about themselves during the buying process. In order to make on-boarding seamless, merchants can allow mobile shoppers to use their smartphone camera to capture the identity document and auto-populate key customer information directly into the system using Acuant’s IDscan technology.

 

2. Verify Your Customer

As mobile commerce is the sector most susceptible to fraud, particularly identity fraud, retailers are realizing the importance of both ID authentication and verification. With AssureID, merchants can know that the identification document is valid and use Acuant’s FRM technology, to authenticate that the customer is the person in the document. In the digital ID capture process, Acuant runs up to 50 different authentication tests per document in seconds. Acuant then validates the identity of the user, comparing facial biometrics from a liveness-tested selfie to the identity document. The combination of Acuant’s solutions enables a streamlined workflow for shoppers while reducing the risk of fraud from identity theft.

 

3. Choose Cloud-Based Solutions that Utilize Machine Learning

Online fraud detection is growing in complexity and demand, and its tools are being used for risk-based authentication and new account fraud prevention. Security and risk management leaders involved in online fraud detection should use machine-learning analytics and cloud-based deployment options, states Gartner’s 2018 Market Guide for Online Fraud Detection.

Mobile commerce is where retailers are seeing strong growth and given the current retail environment, no merchant can afford to ignore this trend. At the same time, it is important to balance the risk and the opportunity to ensure that retailers are protecting themselves against loss while still providing seamless customer experience. Acuant provides solutions that are best in class, securing transactions, protecting PII data and providing a pleasing customer experience.

 

Learn more about Acuant’s identity verification solutions and visit us at NRF 2019: Retail’s Big Show, Jan. 13-15 in New York. We’ll be in our partner Aila Technologies booth # 1240 demonstrating our solutions and happy to book meetings on-site here.

 

 

 

Why Vape Shops Need to Embrace Modern ID Verification

The FDA ruled earlier this year that electronic smoking devices including vape pens and e-cigarettes fall under the category of “tobacco products,” which makes them unavailable to anyone who is under 18. This means vape shops and other retailers now need to verify the ages of customers who want to buy them. The new legislation went into effect August 8, 2016 and will no doubt hugely impact the $3.5 billion a year industry.

The new regulations are in place because the FDA has seen a significant increase in minors who are using electronic smoking devices over the past five years. Back in 2011, 1.5% of high schoolers were using e-cigarettes, but by 2016, that number jumped by 16%. With the new ID verification laws, electronic smoking devices will be harder for minors to access.

Sellers will now have to make sure customer ages are verified before they can purchase an electronic smoking device. When the age restrictions weren’t in place, merchants used to offer free samples to customers and electronic smoking devices were also available in vending machines. The new regulations prevent customers from buying electronic smoking devices without a verified photo ID. Retailers will have to ID customers who look younger than 27 and want to purchase an electronic smoking device.

Verifying IDs can be a difficult process for store clerks, especially if they are doing it by hand. Accuracy in ID verification is critical for retailers under this new regulation because if they fail to verify the ages of customers, they can be hit with huge fines.

Acuant offers a solution for retailers needing a fast, easy and reliable age verification. Whether in the vaping, alcohol, lottery or market, retailers can use Acuant’s ID card authentication solution to accurately verify customer identities and ages in seconds. Acuant’s AssureID solution automatically recognizes IDs from all 50 states, making it easy for retailers to implement across national locations. With immediate image processing and data intake, customers won’t have to wait in long lines while cashiers verify customer IDs. Instead of manually checking IDs, which can lead to inaccuracies, cashiers can use Acuant’s solutions to electronically verify ages with a scanner or mobile device. Acuant’s instant ID verification technology guarantees accuracy and speed, so retailers will be able to remain in compliance and transact with confidence.

Gun Control: Current Purchasing Process and Technology’s Role

The topic of gun control is making headline news more and more consistently. With recent tragic events and ongoing gun control law battles, one might start to question and research what laws currently exist around purchasing a firearm today and what that process looks like.

When a customer buys a firearm from a Federal Firearm Licensed Dealer, they have to fill out government forms like ATF Form 4473, from the Bureau of Alcohol, Tobacco, Firearms and Explosives. ATF Form 4473 requires customers to fill out personally identifying information like names, addresses, and dates of birth. Customers also have to include information from valid government-issued photo IDs, like a driver’s license that includes their current address.  A National Instant Criminal Background Check System (NICS) background check transaction number is required as well. This background check determines if prospective firearms or explosives buyers’ name and birth year match those of a person who is not eligible to buy.

Firearms sellers rely on customers to fill out forms accurately, since they have to keep a log of all purchases. The ATF can inspect purchase logs, and lying on federal forms for a firearms purchase can result in a felony. Incorrectly filling out forms for a firearms purchase can result in severe consequences for the buyer and the seller, so it is imperative that the information gathered is accurate.

Intelligent data capture and identity verification can help to reduce fraud and errors in the firearms transaction process. Our recent partnership with ITouch Technology, a developer of multimedia technology for the hunting and fishing sports industry, has created a self-service kiosk solution that enables electronic capture of customer’s identification to be utilized for processing the ATF Form 4473 and NICS background checks. ITouch Technology’s kiosk application has been developed for use by federally licensed firearms dealers, and offers Acuant’s solution for accurate identification capture and information gathering.

Instead of manually filling out forms, Acuant’s software gathers data from government issued ID’s and auto-populates the information into government approved forms. Filling out forms manually can often result in inaccuracies, which can cause problems for buyers, sellers, and the ATF. Intelligent data capture guarantees accuracy.

Sporting goods retailers that sell hunting and fishing licenses can also benefit from intelligent data capturing solutions. Instead of filling out applications with a retail employee, customers can instead apply for a license at a self-service kiosk. Customers can scan their ID’s at the ITouch Technology self-service kiosk. Acuant’s solution will verify the customer’s identity while automatically filling out a license application with information gathered from the ID. This solution eliminates errors while the verification element ensures the person’s identity.

Purchasing a firearm is a serious matter, and immaterial of current federal regulations, it is clear that technology solutions can play a positive role in the current process.

5 Reasons Why Every Business Needs Identity Solutions

Gathering information from customers and verifying the identities of those who provide it is becoming a simpler task, with the advent of identity solutions that enable businesses to capture, process and verify information in a single step.

Most identity solutions combine hardware systems, software and even cloud-based solutions to make capturing information as easy as swiping a credit card. No more paper forms to fill out. No manual typing of information. It sounds almost magical when you think about it.

But is this new technology simply the latest fad or something your business should seriously consider? Here are 5 reasons why your business should be investing in identity solutions now:

1. Streamlined Processes & Greater Accuracy

process

Whether they are paper-based or computerized, using forms to gather customer information has its limitations. Customers spell things wrong, leave things blank or mistype information. Handwriting can be difficult to read on paper-based forms, leading to data entry errors. Even your own employees can make mistakes when typing information or merging it with other data in the system.

By contrast, the technology behind identity solutions virtually eliminates manual input of information for greater accuracy.

A simple swipe of a driver’s license, state-issued ID, passport, or other ID easily captures relevant information, intelligently populates the fields for use in third party databases, and verifies the identity of customers in a single step. This saves time, money and frustration by simplifying a formerly complex process.

2. Better Customer Relationships

By eliminating the annoying pile of paperwork that most customers fill out on their first visit, you’ll be one step ahead of your competition, making your business more customer-friendly from the start.

Furthermore, the additional time you can spend with your patients, clients or customers when you eliminate the lengthy check-in process becomes a great way to start customer relationships on a positive note.

Even customers who shop online will appreciate the streamlined process that identity solutions allow, enabling them to proceed through to checkout with minimal input of information.

Finally, you’ll build trust with customers when you take the time to verify their information. Customers will appreciate your attention to safeguarding their identity, building rapport and brand loyalty.

3. Increased Security

With threats of domestic terrorism on the rise, it’s more important than ever to verify the identities of customers and other visitors that enter your store, facility, practice, or campus. Identity solutions are a great tool to instantly verify the identity of any visitor quickly and easily, making both customers and employees feel safer.

The integrated technologies of many identity solutions can give your business the ability to process and verify visitors quickly, while capturing detailed information and images from visitor ID’s, business cards, or passports.

4. Deter Fraud

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Excerpted from LexisNexis.com

By verifying the identity of shoppers both in-person and online, you’ll decrease fraudulent transactions which lead to lost merchandise and chargebacks that cut into your bottom line.

Identity solutions don’t just verify that the credit card or other payment method is valid. They also verify the identity of the card user, effectively preventing transactions from lost or stolen credit cards.

5. Regulatory Compliance

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Using identity solutions is a great way to comply with legal requirements imposed by state and federal laws. For example, if you serve alcohol or sell other products that cannot be sold to minors, identity solutions enable you to verify the identity and age of potential customers, so you stay in compliance with the law, avoiding costly fines and even lawsuits. Financial service providers can ensure that their customers have a fast, positive experience when opening accounts while meeting the Know Your Customer (KYC) and Customer Identification Program requirements.

Identity solutions are also a great tool to help medical practices and other businesses comply with growing HIPPA regulatory compliance requirements.

Emerging identity solution technologies are changing the way business is done for the better, leading to reduced paperwork and greater accuracy, increased security, less fraud and better compliance with regulatory requirements, while providing a better customer experience all around. If you’re interested in moving your business forward, while saving time and money, it’s time to consider identity solutions for your growing business.