Stop Retail Fraud with Identity Verification
From verifying vendors for your marketplace to managing age- or membership-restricted purchases, Daon’s identity solutions can help you protect your business, reduce overhead, and grow your footprint with minimal investment – all while creating a better user experience for your customers.
Biometric identity solutions are just beginning to make inroads with the retail industry, but the possible applications are far-reaching. Many common challenges both online and brick-and-mortar merchants face can be solved by knowing exactly who is on the other end of each transaction. Integrating that knowledge into automated systems can also open up new opportunities to expand offerings, reduce overhead, and make it easier for your customers to make a purchase.
At Daon, innovation is part of our DNA. That’s why the chance to help our retail partners solve problems with new strategies and cutting-edge technology excites us. We’re ready to push the limits of what’s possible with some of the world’s most iconic retail organizations.
Identity fraud can be a significant challenge for retail organizations. From something as common as a falsified age to something more nefarious like an illegitimate vendor, identity verification (IDV) is an effective solution, no matter the complexity of an issue. Integrating ID document scanning and biometric image matching into your onboarding process ensures that the person you are doing business with is not a known fraudster, misrepresenting themselves, or opening multiple accounts.
Marketplace Onboarding
When a vendor creates problems in your marketplace, it tarnishes your reputation. Your customer won’t focus on the culpability of the vendor – they’ll focus on the fact that you allowed the incident to happen. Not only does this make it harder to do future business with affected customers, but rectifying the situation costs time and money.
The most effective way to prevent reputational harm is to ensure that only reputable vendors are represented in your marketplace. Identity verification not only serves as a deterrent to bad actors by requiring real proof of identity, but the ability to check against previous enrollment records means IDV can also eliminate repeat offenders.
Age-Controlled Transactions
Alcohol, tobacco, pharmaceuticals, paints, solvents, pocket knives, fireworks – there are countless products that, either by law or an abundance of caution, require the buyer to be a certain age before they can make a purchase. But how, in the age of online shopping, self-checkouts, and AI-generated document images can a business be certain that a customer is the age they claim to be?
Integrating identity verification into the onboarding process for your e-commerce site, apps, and POS systems allows you to capture the true birthdate of each customer from their verified ID, and to qualify purchases based on that information. Authenticating at the time of purchase takes seconds, involves less friction than requiring customers to display an ID, and removes human error from the equation.
Automated Retail
Self-service retail is a growing segment, and it’s just getting started. Retail locations are adding everything from self-checkouts to automated lockers for order pick-up. But what about behind-the-counter purchases?
App-controlled vending with identity verification allows for self-service purchases/pick-up of everything from alcohol to prescription drugs. Customers onboard to the app with a validated ID and facial biometric and then authenticate with a selfie at the time of purchase/pick-up, guaranteeing their identity, and, if required, their age.
This technology is already in use at stadiums and golf courses, allowing for things like self-service alcohol vending – but that’s just the beginning. With this technology, a traveler having allergy issues could grab a behind-the-counter decongestant at the airport; a busy parent could get an important prescription after pharmacy hours; lockers could be used to deliver high-value purchases with the certainty that the person who ordered the product is the one picking it up.
Not only does applying this technology improve customer satisfaction and allow for the reallocation of headcount, but it also opens up the opportunity to expand your footprint with minimal investment.
Membership Management
Member account sharing has become a financial burden for a number of industries. Retail is no different. Member warehouses, membership-based e-commerce sites, and other exclusive retail operations are having to crack down on password/member ID sharing, but there are several challenges involved. Many of the methods employed to stem this activity cause unwelcome friction for members who aren’t abusing their access. It can be worse at retail locations, where intrusive spot checks not only create discomfort for compliant members but are also subject to human error and in-the-moment emotion, which can cause bigger issues.
Identity verification can positively identify members at the time of entry or the point of sale. It eliminates credential sharing and creates no additional friction. It also decreases in-person confrontations, which can often escalate.