Time to listen up, businesses operating in today’s digital world. Protecting your clients’ sensitive information is non-negotiable. With the rise of online fraud and the increasing sophistication of perpetrators, it is imperative that you take action to confirm your clients’ identities and secure their data. The status quo of relying on document numbers is no longer enough. It’s time to get serious.
Don’t think that document identity theft is just a numbers game. The Australian Cyber Security Centre reported that identity theft cost Australians a staggering $2.2 billion in 2019, with an average loss per victim of $9,000. And that’s just the tip of the proverbial iceberg. Many victims don’t come forward to report their experiences, making the true cost likely higher. The damage to a business’s credibility and reputation, not to mention the monetary losses, is devastating.
Just in case you missed it one of the largest data breaches in recent years of a “pseudo identity” was credit agency Equifax that had a data breach in 2017. This saw over 143 million people names, addresses, dates of birth, Social Security Numbers (equivalent to Tax File Number) and drivers licence numbers exposed, with a small subset also including their credit card numbers. It was recently reported that upgrading security cost Equifax USD 1.4 billion, and a recent class action settlement of USD 125 per person is expected to cost the company an additional USD 500 million.
The Problem with Conventional Methods
Let’s be clear, relying solely on document numbers for verification, client information storage, and data transmission is no longer sufficient in today’s digital world. Why? Because identity documents can be easily purchased on the dark web for a mere $20. This makes businesses vulnerable to documents also known as “card-not-present fraud” and exposes them to unexpected risk. And don’t even get me started on the traditional methods of client information storage and transmission via insecure systems. They leave businesses vulnerable to cyber attacks and data breaches, with devastating consequences for both the business and its clients.
Don’t believe it if someone tells you that a computer running Windows 10 is secure – it can potentially be accessed in under 10 minutes.
The future is Biometric Data Businesses like One Click Verify where the customer must bind the traditional document number verification with biometric verification that perform real-time likeness detection, such as face recognition and fingerprint scanning. Other forms of biometric verification include iris scanning and voice recognition. These methods are more secure because biometric information cannot be easily stolen or duplicated. Plus, biometric verification meets the essential legislative and regulatory requirements for Know Your Client, Anti Money Laundering and Counter Terrorism Finance in digital world which traditional businesses use to rely on face-to-face transactions. To avoid potential legal consequences, it’s a business’s responsibility to ensure compliance with these and other regulations in the digital age.
The Benefits of Biometric Verification
The implementation of biometric verification systems offers numerous benefits to businesses. First, it provides a higher level of accuracy and protection compared to conventional methods, lowering the likelihood of clients becoming victims of fraud and preventing sensitive data from falling into the hands of cybercriminals. Second, biometric verification ensures compliance with the necessary regulatory frameworks established by the Australian government legislation and regulators. Third, using biometric verification can provide a competitive advantage by demonstrating a commitment to protecting clients’ sensitive information and maintaining credibility.
Shameless plug, though, One Click Verify is your partner in Biometric Verification. One Click Verify is leading the market in biometric verification services. We understand the challenges businesses face in protecting their clients’ sensitive information as the product was commercialised from our own online tax business part of the Australian Taxation Office Annual Operation Security Framework. With over 65,000 clients already, we are confident and dedicated to helping our customers make the transition to a more secure and compliant solution. The transition to biometric verification won’t be simple because client verification shouldn’t be, though we will make it as simple and straightforward as possible thanks to our user-friendly and integrated services. And for those businesses who find the transition challenging, we have multination partners who are able to support them in their move away from storing and transferring sensitive client data.
It’s time for businesses to take the protection of their clients’ sensitive information seriously. The conventional methods of relying on document numbers and client information storage are no longer enough. Especially with the increase to the maximum penalties under the Privacy Amendment from The Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022 increases the maximum penalties for serious or repeated privacy breaches from the current $2.22 million penalty to whichever is the greater of:
- $50 million;
- three times the value of any benefit obtained through the misuse of information; or
- 30 per cent of a company’s adjusted turnover in the relevant period.
Implementing biometric verification through real-time likeness detection provides a secure and compliant solution. One Click Verify is your partner in biometric verification and is ready to help you make the necessary changes for the protection of your clients and your business.