Fraudulent activity is an issue that affects almost every business worldwide. From major retailers facing in-store and online credit card fraud to banks and financial institutions who deal with fraud on a daily basis, it’s a very common issue that many companies have tried to combat.
Most think that they have a firm grasp on the issue or are hesitant to admit that the problem is outside of their control. That said, without the right authentication tools, your company will always be left somewhat vulnerable to fraudsters which can cost your company a ton of money in the long run.
Here are some ways that the right ID authentication tools can save your business money:
Cut Insurance Premium Costs
Insuring your business against fraud is a necessary expense for bars, restaurants and other age-restricted businesses everywhere. That said, the cost of insurance premiums can be very significant and can range upward of $100,000 for extensive coverage. Luckily, some insurance providers offer credit to age-restricted businesses that utilize sophisticated ID checking software such as Intellicheck.
With the right ID authentication tools, you can cut back the number of under-age drinkers or smokers that are able to maneuver your existing ID checking solutions. This means less risk for insurance companies and can be used to negotiate lower insurance premiums. With this as an incentive, integrating Intellicheck’s solutions can result in up to $2,000 in premium credit which not only offsets the cost of the system but can save you money on hefty legal costs.
Prevent Hefty Fines and Legal Fees
When it comes to protecting your financial institution, you may find yourself with security measures in place to avoid violating anti-money laundering (AML) compliance regulations. For example, in the U.S. alone, over $23 billion in fines have been issued to banks and financial institutions due to AML violations.
Many institutions may hire a BSA officer or institute a strict set of AML compliance guidelines in order to ensure their protection against fraudsters. All of these aspects of AML compliance can be costly, especially if a fraudster is funnelled through your AML compliance programs and manages to scathe by. With the right ID authentication tools, you can prevent any wasted resources being dedicated to fraudsters who could have been caught early.
Stop Fraud in Real-Time
Ultimately, the only way to prevent wasted resources or avoid fines is by catching fraudsters as early as possible. If even one fraudster slips by, you could be facing thousands of dollars in losses. Even if your ID authentication tool catches one fake ID, you’re likely to see the return on your investment.
For example, as soon as companies get a highly accurate tool in place, they’re going to see at least one fraudulent ID relatively quickly. It is estimated that fraudulent ID in the retail or financial services space equates to an average of $1,500-$3,500 in fraud savings per fraudulent activity, and oftentimes more. With that in mind, it’s only a cost-saving solution if the platform is highly accurate and can catch even the more sophisticated fake IDs.
Save Money With Intellicheck
Many ID scanning solutions are easy to bypass as they only parse the data and display the information on your POS system, which doesn’t mean the document isn’t fraudulent. Intellicheck’s solutions take the next step up and can help you authenticate IDs with 99% accuracy. By catching fraud early, you can avoid hefty fines from BSA/AML violations, save money on insurance premiums, and prevent losses accumulated due to fraudulent activity.
In fact, Intellicheck’s solutions can authenticate an ID in real-time with greater accuracy than any other solution out there. Last year alone, more than $667 million in losses were credited to identity fraud. Protect your business from thousands of dollars in losses with Intellicheck.