With emerging technology and innovations in the landscape of the IT industry, the incidents of data breaches are also increasing. With more everyday advancements, cybercriminals are getting stronger while using hacks to fight against those technologies. Well, this race is inevitable. The point to ponder is, how can a developer secure the system from online fraud?
For this, the very first step is to identify and verify the onboarding online customers. The customers are verified under certain security parameters and are allowed to process the request if they pass the verification process. Identity verification has different ways through which a person is identified. This is solely based on the purpose and requirements of a company.
Why is it Important for Developers?
This is the responsibility of the developer to integrate trusted online identity verification APIs in a system to avoid online fraud and payment scams. This helps in preventing the organization from harsh fines and the risks of reputational damage. The purpose of online customer verification is to ensure the Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. These compliances are necessary in order to allow only trusted people from using online services. Any intrusted entity can harm the system and so can become alarming for the company’s reputation.
The fraudsters find out loopholes in the system, exploit vulnerabilities and hack the system. They treat the system according to their wants. The biggest loss is the sensitive customer data and fines that organizations need to pay because of weak online systems. A developer must ensure that the security API which is integrated with the online system is secure enough to cope with all the cyberattacks and fraudulent activities. It should comply with the local regulators and company's SOPs respectively.
Standard Operation Procedures (SOPs)
A company has pre-defined SOPs which need to be catered in every product and should explicitly follow all of them. While integrating any third-party service into the online system, the developer should make sure that all the company’s guidelines and SOPs are properly followed. Any carelessness can result in a heavy loss.
Similarly, for security purposes, an online identification API should be efficient enough that it fulfills all the requirements of a company and do not harm the SOPs in any way.
Artificial Intelligence and Online Verification
With increasing cyberattacks and data breaches, there is a need for an exceptional security system that secures the sensitive information of customers based on security laws and local regulators. Online attacks can be prevented in many different ways, there could be an installation of firewalls, gateways, end-to-end encryption, etc. but even these are not enough to secure the online system entirely. Businesses should know the kind of traffic coming to their system. For this, there is a need for online identity verification.
Online customer verification services provide API that is integrated with an online system and authenticate each incoming end-user. Artificial Intelligence is used for user verification. Face recognition, document verification, id card verification, address verification, and similar ways are adopted to verify the onboarding customers. Several AI techniques are used to interpret facial patterns, unique biological patterns, character recognition, etc. for face and document verification. This helps avoid the risks of money laundering and fraudulent activities. Also, AML and PEPs background checks are implemented against which each identity is verified and allowed to proceed with the onboarding process if verified. A programmer can suggest a company who demands online identity verification to keep the boundaries away from attacks.
Last but not least, while building a product for a company, programmers should consider the requirements of local regulators to comply with them in order to avoid harsh fines and reputational damage. There are a number of regulations according to which security in a system should be implemented.
GDPR is an EU regulation for data protection and privacy rights of the citizen. This law ensures that the organizations which deal which user data should be careful about the collection, processing and storing of data. Also, a developer holds this responsibility of implementing security in the system based on GDRP requirements.
Similarly, FINMA is a regulation of the Swiss government which defines financial regulations. It supervises the banks and financial institutions and evaluates their ways of collecting and processing user data. Here comes the duty of the programmer to comply with these regulations to avoid the indirect or direct risks from a company.
Also, PCII is a regulation to protect the information infrastructure of the private sector. It analyses what security measures are taken in the system and how they fight with cyberattacks.