Chris Hooper
Online marketplaces are experiencing an unprecedented level of global growth, with the channel predicted to account for more than half of all ecommerce worldwide by 2027. This makes marketplaces the fastest- growing retail channel on the planet, adding more than $1.7 trillion in sales in just five years.
Not only are existing marketplaces such as Amazon, eBay, OnBuy and Alibaba growing, new consumer-to-consumer marketplaces are springing up, with many serving the circular economy, while long-time brick-and-mortar retailers are also adopting the sales model.
Proactive measures such as enhanced on-boarding and authentication are the only way to readdress this balance. Before we take a deeper dive into the latest identity verification techniques it is important to understand how criminals are evolving phishing scams in their efforts to attack marketplaces and their users.
The full extent of the challenge facing marketplaces is revealed in the Veriff Identity Fraud Report 2023, which shows a 17.9% uptick in fraudulent online activity during the past year. This equates to nearly one-in-ten verification requests seen by Veriff now being fraudulent.
According to the latest Veriff data insights, one of the biggest challenges now facing marketplaces is the industrial scale of this fraud, with increasingly powerful organized crime gangs using methods such as phishing on a massive scale in an effort to compromise customer accounts.
Such organized crime gangs are only too willing to exploit the Achilles’ heel of the marketplace sales channel – the identity verification process.
Our latest research reveals that even in highly regulated areas, such as the financial sector, there has been a 79% hike in document fraud during the past year. This spike contributed to an increase in the overall identity fraud rate of more than one percent each quarter throughout 2022, and there is no sign this upward trend is likely to end any time soon.
Fast decisions
A 98% check automation rate gets customers through in about 6 seconds.
Simple experience
Real-time end user feedback and fewer steps gets 95% of users through on the first try.
Document coverage
An unmatched 10K+, and growing, government-issued IDs are covered.
More conversions
Up to 30% more customer conversions with superior accuracy and user experience.
Better fraud detection
Veriff’s data-driven fraud detection is consistent, auditable, and reliably detects fraudulent forms of identification.
Scalability embedded
Veriff’s POA can grow with your company’s needs and keep up with times of increased user demand.
