A recent JD Power study showed that hotel guest satisfaction has plateaued as perks have become standard expectations. When picking and choosing exact specifications via an app is a better experience than getting to a hotel only to argue with a desk agent, it becomes clear why Millennials have such low engagement with the hospitality industry. It’s no wonder the hotel and rental car markets are being crowded by sharing economy businesses Airbnb and Uber.
As the hospitality industry shifts to accommodate customer preferences, influenced in part by the distinct priorities of the Millennial cohort, and more generally by all things digital—social media, smartphones, and apps for everything, the role identity verification becomes critical.
Scan-and-verify solutions such as desktop devices and mobile scanning apps that quickly capture and digitize all the information from a driver’s license, passport, or other identity card make for very customer friendly experiences. Accurate information is extremely valuable to big tech companies, but most hospitality companies aren’t taking advantage of even basic customer data.
The following are ways the hospitality industry can leverage customer data to promote a better experience and increase revenue:
Gain Customer Loyalty through Personalization
Millennials are hard to win over as brand ambassadors in the hospitality industry; a recent Gallup report found only 20% are fully engaged (sharing positive feelings or reviews for a brand) while 23% are actively disengaged (sharing poor reviews). Getting the right customer data is the key to increasing customer loyalty. Linking a scanned ID to a previous visit, amenities targeted toward their demographics, and keeping preferences on file for future visits can go a long way toward fostering brand loyalty.
Create Opportunities to Upsell while Combatting Fraud
Disney’s Magic Bands are tracking devices that can tell employees to interact with a guest by name or event such as a birthday. Not every company has the computing power of Disney, but if you can seamlessly and reliably prove the validity of your guest’s identity and securely collect payment this creates a lot of opportunities to upsell experiences and products. Verifying identity and payment information against a database can also help reduce risk and fraud such as property damage or preventing false charges to a room.
Invest in a Seamless Experience
Looking ahead, biometric technology and identity verification will also help travel and hospitality companies build more seamless door-to-door systems, a traveler’s identity to their itinerary, baggage routing, transportation, and hotel arrangements are tracked so they can move seamlessly from point-to-point. This vision of travel is infinitely more appealing than slogging from one check-in desk to another, and starting over each time with data entry, payment, and paperwork. While these innovations may not become widely adopted for several years, companies that lay the groundwork now will be poised for competitive advantage.
By utilizing advanced identity capture and verification solutions, hotels, rental agencies, and tourist attractions can start delivering a relaxed, smooth-sailing experience as soon as customers walk in the door.
Online fraud rose 15 percent between 2015 and 2016, and approximately $32 billion in costs associated with e-commerce fraud occurred in 2014. LexisNexis reported that 1.5 percent of retailers’ revenue is linked to fraudulent transactions. Continued data breaches also put online shoppers and retailers at risk. However, you can safeguard your eCommerce business from fraud by enhancing your existing security with easy to use, cost efficient technology tools.
How People Are Gaming the System
Before safeguarding your e-commerce operations, it’s important to understand how people are getting around security measures in the increasingly card not present (CNP) transactional environment. Some common ways eCommerce fraud occurs include:
Vulnerability in Mobile Devices and Infrastructures. Data breach occurs when vulnerabilities exist. Even the largest and most sophisticated businesses are vulnerable, as evidenced by headlines regarding Sony, Yahoo and retailers like eBay and Target. They can happen on almost any device, too, and with the rise in the use of mobile devices for both personal as well as business purposes, there has been an exponential growth in the number of well-organized cyber-crimes and independent hacks.
Account Takeover Fraud. Account takeover occurs when a fraudster uses a piece of stolen personal information to attempt to gain access to a private account. This does not have to be a social security number or PIN code – anything from an email address to a username, any identifier used in the validation process can work. As an example, a fraudster could use an email and login for any account and run that against services such as PayPal, eBay, Amazon and virtually any other mobile app – in minutes. Validated credentials can then be sold for hundreds or thousands of dollars on the Dark Web.
Chargebacks and Reversed Transactions. This form of “friendly fraud” happens more often than you think. More than 86 percent of chargebacks are estimated to be fraudulent. It makes it easy for customers to get a refund via their credit card companies by disputing charges while putting the burden on the e-retailer or business owner to prove that the charges are valid.
Identity Theft. While ushering in the EVM chip helps to reduce fraud in person, it doesn’t stop fraudsters from viewing the physical card number, recording it and using it online. Moreover, hackers can get personal data online from doxxing (the internet-based practice of researching and broadcasting private or identifiable information) and can often link public information with bits of personal data, such as the last four digits of the social security number and the birth date and address from a voter’s registration database online.
Tech Solutions That Work
With the increase of card not present (CNP) and mobile transactions, the good news is that you can safeguard your online business with the right tech tools. Here are some quick and easy tech solutions to instantly prevent eCommerce fraud:
ID Verification via ID Authentication. Quick and easy ID capture can allow online retailers to validate an ID in seconds. Forensic tests can be performed in real time to ensure that the ID presented is authentic. Scanning the ID also allows retailers to get necessary information that is accurate to populate into your point-of-sales (POS) system and CRM. This allows for quick verification of customer data such as age and address to verify the sale of an alcohol wine club membership or other age or geographically restricted business. It also removes the inconvenience of manually entering in data, improving shopping cart abandonment rates.
Biometric Security Measures. Facial recognition match makes it easier and more user-friendly to verify identities and integrate with existing apps or systems. Customers can simply snap selfies to verify that they match the photo on their government issued ID from a webcam or mobile device. This extra step prevents fraudulent transactions by further binding a person to their identity.
By recognizing that there are quick and cost-effective tech solutions to manage online retail fraud, you can instantly reduce your risk and recognize good transactions while flagging bad ones. As a bonus, you get the added benefits of:
- Verifying Age and Address
- Clean CRM/Customer Database with Accurate Information
- Fast and Friendly Customer Check-out Experience
See what verification tools are right for your business!
Despite advances in technology, such as the spread of credit cards with microchips, in 2016 more than 15 million Americans lost $16 billion as a result of identity theft.
Financial services is an area where identity verification is crucial. Financial institutions must ensure that customers are who they claim to be, but they also do not want to make the verification process very difficult and annoying for customers. Mistakenly giving a malicious actor access to a user’s bank account could result in devastating consequences. But what are customers willing to do and what should they do in order to have security? We know that today, answering a few questions and providing a password is easily hacked by sophisticated fraudsters.
Fortunately, there are a number of solutions to protect customers from fraud that are also user-friendly and fast.
Onboarding and New Account Creation
Bringing new customers on board needs to be quick and easy, but also secure in order to protect both institutions and customers. When a new bank account is opened, it’s the institution’s responsibility to verify the identity of the user. The bank must first verify that the given name and Social Security number match a real person, typically by contacting one of the three major credit bureaus. Next, the bank must verify that applicants are who they claim to be by asking questions about their personal history, such as cities or streets where the applicant has lived in the past.
Financial institutions in the U.S. also need to comply with applicable security regulations when opening new accounts. “Know Your Customer” (KYC) is a policy for businesses who need to verify the identity of their clients in order to prevent crimes such as fraud, identity theft, and money laundering. KYC programs begin by collecting and verifying information about customers and checking them against a list of known criminals. Higher-risk customers have additional information collected, and their activity is monitored for potential red flags.
All of these processes can be streamlined and automated by the intake and authentication of data from a government issued ID, like a driver’s license. Authentication solutions that scan an ID, on a desktop or mobile device, can verify a credential in seconds to validate it. This then allows the institution to match the verified credential to the person. You may do this visually at a bank, or through a mobile facial recognition app that will match the photo on the ID to a selfie taken.
Mobile banking is a trend that is set for explosive growth in the years to come. In 2015, KPMG estimated that the number of mobile banking users would double in the next 4 years to 1.8 billion people.
This rapid growth of mobile banking makes the identity verification process even more important. Traditionally, mobile banking customers have logged onto their accounts using a username and password. In the event that they forget this information, customers need to provide data such as their Social Security number or credit card, or answer “out-of-wallet” security questions.
However, in recent years, banks have explored alternate security measures, such as biometric security. For example, many banking apps now make use of fingerprint and facial recognition technologies. In addition, some financial institutions allow users to verify their identity using their voice when they call the company’s phone number.
It is possible today to open an account and conduct all your banking without ever stepping foot in a bank, but you want to make sure that your financial institution is taking proper security measures and all the better if they are fast and easy for customers!
Governments are increasingly turning to advanced technology like ePassports to secure their borders and its about time. Some nations like the Netherlands and Brazil use ePassports throughout their countries, but in many cases, it seems like the technology is far ahead of the adoption. With 328 ports of entry, more than 7,000 miles of borderlands and 95,000 miles of shoreline, the U.S. cannot rely on physical barricades and security checkpoints alone. ePassports that contain biometric information can be used by border security to quickly verify the identities of travelers without sacrificing accuracy.
Biometric passports include microprocessor chips that are embedded into the cover. Currently, facial, fingerprint, and iris recognition are the three types of biometric methods used in e-Passports. The chip contains a digital file of each biometric feature, and a comparison of features is performed at the time of crossing. The International Civil Aviation Organization (ICAO) has detailed the specifications that machine readable travel documents should have to create standardization across countries. Public Key Infrastructure (PKI) is used to authenticate the traveler’s identity through the passport chip. PKI makes it difficult for identity thieves and other criminals to forge ePassports.
Facial recognition is another component of ePassport technology that can aid with border security. Canada is already planning to use facial recognition technology within their major airports by the end of 2017. This new technology aims to allow passengers to use self-service border kiosks to assist with clearance. As biometric identity verification becomes more reliable and commonplace, consumers can use this technology through their mobile devices or at self-service kiosks in airports.
The omnipresence of biometric technology will enable more thorough screenings in less time. Chip readers can also be used in more commercialized settings, like in the hospitality industry. International travelers can use ePassports at self-service kiosks in hotel lobbies to bypass the language barrier and check into their rooms. ePassports can expedite the check-in process for hotel guests while leaving hospitality staff free to provide more personalized service.
Our new partnership with Mount Airey Group, a provider of identity solutions to federal agencies, launches the industry’s most comprehensive authentication product that will strengthen border control by minimizing the use of fraudulent passports. Acuant CHIPTM – our chip reader technology will be a core component integrated with Mount Airey Group’s Ozone® ePassport validation product.
The comprehensive ePassport solution is designed to handle a host of issues unique to passports with individualized policies for every country, and complies with all ISO and ICAO standards. We expect demand for these solutions to grow with the continued proliferation of ePassports and chip technology for border control as well as for commercial use. The convenience of ePassports makes them optimal for airports, where long lines at security checkpoints are common. Mobilizing chip reading technology in border environments will also enhance the coverage, responsiveness, and flexibility of field operations. Biometric technology is poised to become a vital component to national security and by converging physical and digital identities through ePassports, border security can improve accuracy and effectiveness.
The digital economy has brought about the democratization of goods and services thanks to the advancement of technology, such as increased broadband connections with high-speed. It’s also helped modernize the sharing economy to push it forward so that people can enjoy its benefits of convenience, simplicity and consumer empowerment to share almost anything from bicycles and homes to medical equipment. Even businesses are increasingly allowing their employees to take advantage of the cost savings from using ride-hailing and home rental apps. However, the rising threat of identity fraud is becoming synonymous with the growing digital economy. Discover how identity fraud affects the sharing economy and what action you can take to combat it.
Identity fraud is growing.
Identity fraud steadily increases, and technology is making it easier to do. ID fraud increased by 16 percent between 2015 and 2016, and the sharing economy is not immune. The sharing economy can provide a loophole for businesses that fail to do a thorough background check on providers or hosts of services. Moreover, ID fraud is often facilitated via technology with hacking being as simple as exploiting your enterprise’s vulnerabilities or phishing for information from consumers. These instances can potentially leave your business at risk for cyber attacks and liability suits.
ID fraud presents opportunities for “fraud-fighting” technology.
While reputation ratings have been used to help reduce fraudulent behavior, a more digital resolution is gaining popularity for being user-friendly and more secure. As a solution to circumvent identity fraud in the sharing economy, businesses are taking matters into their own hands with “fraud-fighting technology. Businesses and even governments are using biometric security technology, such as facial recognition systems and devices that detect fingerprints digitally. ID scanning or scan license technology, ID authentication and ID verification services also help to mitigate identity theft. They offer the main benefit of being able to verify people’s identities in real-time.
Despite the rising risk of identity fraud within the sharing economy, there are several solutions to address identity fraud. Sharing economy businesses can utilize these user-friendly ID verification solutions to instantly reduce fraud and protect both themselves and consumers. With Acuant, it takes less than 10 seconds to authenticate an ID, and another few seconds to match the photo on the ID to a selfie taken with our facial recognition match. Our solutions are all made to support person and card not present transactions for all operating systems that dominate the digital economy. 10 seconds can amount to saving millions of dollars.