It’s no secret – cases of identity theft and fraud continue to make headlines every single day. Because of this, it becomes more important than ever for organizations to protect customer privacy, deter fraud and meet compliance regulations. Additionally, when it comes to age restricted commerce (especially in a customer-not-present environment), protecting our youth and keeping the products and services intended for adults out of the reach of children is the #1 objective.
Age restricted commerce such as lottery, online gaming, wine & spirits, tobacco, social networking, wireless and others are not invulnerable to the risks associated with identity theft and fraud. And, as this dynamic industry continues to grow, only assessing if a customer is of age will no longer be sufficient. Determining a minimum age needs to be combined with gaining a deeper insight into the validity of an identity along with fraud patters to help protect customer privacy, meet compliance and prevent fraud.
When developing your Age Verification program, here are a few guidelines to follow:
Step One: Capture basic customer information such as name and address. You should also maintain the ability to collect Date of Birth or Social Security Information as well.
Step Two: Utilize an Age Verification platform that is combined with a robust identity solution to conduct an analytical search on billions of trusted data sources and return a result, including any identity discrepancies it finds.
Step Three: Check that returned identity for minimum age requirements and potential fraudulent activity, applying a deep set of fraud detection analytics to help minimize risk and loss.
Step Four: Depending on the results and your organization’s business rules you can now approve or fail the transaction.
Ongoing: The fraud landscape continues to evolve and change. Throughout your age verification program, it is important to be able to easily make changes to your business rules and processes in order to stay ahead of the fraudsters while also continuing to meet the guidelines set forth in the Children Online Privacy Protection Act (COPPA).
Additionally, it is important to not only assess age, but also gain further insight into an identity and potential fraud indicators so you can determine if the individual fulfills the organization’s business and compliance regulations.
Click here to check out our recent Press Release regarding IDology’s new & improved ExpectID Age solution!