Regula Pinpoints Top Three Business Challenges with Verification of International Customers
April 23 2024 - 3:00AM
Business Wire
In addition to the clear risks, such as an increase in fraud,
attracting new foreign customers presents less apparent challenges,
including the absence of standardized documentation and language
barriers. These are the results of a global survey conducted by
Regula, a global developer of forensic devices and identity
verification solutions.
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Top problems businesses deal with when
verifying foreign IDs, according to Regula’s survey (Graphic:
Business Wire)
Key challenges for businesses
When it comes to identity verification for international
customers, including a growing community of digital nomads,
organizations from various industries participating in Regula’s
survey tend to point out the following challenges:
- The lack of unified document standards. 41% of
decision-makers in all sectors report a significant challenge due
to the lack of standardized identity documents. This inconsistency
affects the efficiency and speed of IDV processes. For government
services, the problem seems to be even worse, since 48% of the
respondents in this sphere named this issue as the main
challenge.
- The increase in fraud. Identity-related fraud continues
to be a major concern, affecting 40% of businesses overall. Higher
impacts of fraud are observed in Banking and Financial Services
(48% of respondents call it a key challenge) and Retail (44% of
respondents).
- Language barriers. Complexities due to language
differences are reported by 36% of businesses. For the Healthcare
and Insurance industries, this is an even greater concern, with 41%
and 39% of respondents correspondingly naming it among the top
three challenges.
Dealing with new identity documents and facing new risks,
organizations strive to pursue a high level of identity
verification (IDV) security and accuracy, with every third of them
expressing the need for an increase in their IDV budget by up to
20%.
"As the world is starting to pilot the concept of digital IDs,
it is possible that in the foreseeable future, we will achieve a
certain level of identity document standardization. That means some
of the current challenges in international ID verification will
likely be mitigated,” says Henry Patishman, Executive Vice
President of Identity Verification Solutions at Regula. “In the
meantime, both businesses and IDV providers have to concentrate on
tackling fraud and language barriers. From our experience, we see
that there are two effective ways of dealing with these issues:
enhancing the set of document and biometric checks, with a strong
emphasis on data cross-checks to spot any possible inconsistencies
that may indicate fraud, and growing your own document knowledge
database to be able to read any document in any language
correctly.”
Major concerns for customers
In their turn, digital nomads who settle in foreign countries
for short or long periods of time also face challenges related to
identity verification. Predominantly, their concerns revolve around
the document validity period, which has an expiry date and proof of
residency, such as rental agreements or utility bills. Each of
these issues is a challenge for 19% of Regula’s survey
respondents.
Apart from that, 18% of digital nomads have difficulties with ID
verification because of their frequent travel and changing
locations, which create inconsistencies in the information
provided, and potentially lead to delays or rejection in identity
proofing. Another 18% of respondents feel a lack of trust and
credibility from institutions due to the unconventional nature of
their lifestyle and work arrangements.
As for the language barrier, 70% of digital nomads say they have
encountered language difficulties in understanding the instructions
during the verification process. However, only 16% of nomads cite
language barriers as a top frustration during the ID verification
process. At the same time, twice as many digital nomads (36%) feel
frustrated because of Internet connectivity issues: majorly relying
on public Wi-Fi networks, they face an increased risk of
cybersecurity threats and data breaches during the verification
process.
The research has also shown that only 29% of nomads are very
comfortable with providing sensitive identification documents
online while being in a foreign country.
To learn more about the concerns and frustrations for both
businesses and digital nomads, read the full report on the survey.
To find out how to cope with various difficulties during the
identity verification process, please visit Regula’s solutions page
and learn about the advanced technologies for document and
biometric checks.
*The research was initiated by Regula and conducted by Sapio
Research in September 2023 using an online survey of digital nomads
and Fraud Prevention decision makers across the Software/Tech,
Financial and Banking Services, Technology, Telecoms, Travel and
Hospitality sectors, and others. The respondent geography included
the US, UK, Germany, Spain, UAE, and Mexico.
Resources:
- Blog article Identity Verification in a Globalized World -–
https://regulaforensics.com/blog/identity-verification-in-nomad-era-research/
- Survey report Identity Verification in a Globalized World –
https://regulaforensics.com/resources/identity-verification-for-digital-nomads-report/
- Regula Document Reader SDK –
https://regulaforensics.com/products/document-reader-sdk/
- Regula Face SDK –
https://regulaforensics.com/products/face-recognition-sdk/
About Regula
Regula is a global developer of forensic devices and identity
verification solutions. With our 30+ years of experience in
forensic research and the largest library of document templates in
the world, we create breakthrough technologies in document and
biometric verification. Our hardware and software solutions allow
over 1,000 organizations and 80 border control authorities globally
to provide top-notch client service without compromising safety,
security or speed. Regula was repeatedly named a Representative
Vendor in the Gartner® Market Guide for Identity Verification.
Learn more at www.regulaforensics.com.
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Kristina – ks@regulaforensics.com