The world today is completely wired online. People like me and others who are working in the tech industry know this to be a forgone conclusion. Everything from reading the news to ordering groceries has moved to the Internet. If you are one who still ventures to stores for shopping, technology is right alongside, as you can simply scan your phone at the checkout register and pay for your goods, without any paper money exchanging hands. Services like Apple Pay and Samsung Pay, as well as other online wallets, are a necessity for consumers to keep up with vendors who have transitioned to the digital age of payments.
Fintech is one if the latest trends to skyrocket in popularity, with consumers uploading more and more sensitive information, such as credit card details, online. Yet with the string of recent security breaches at major retailers, and Apple entrenched in a legal battle with the FBI over the privacy of information, the age of fintech poses various problems for both consumers and vendors alike. Much of the security emphasis for online transactions is placed firmly on customer information protection, while not much is done on the side of merchants and financial institutions. This leaves the vendors in a bind, wasting valuable time pouring over documents searching for deception, rather than dealing with more business-related issues.
ID fraud is not just a problem in the financial sector, but for international security as well. Thousands of refugees have flocked to Europe, which also revealed a slew of fake passports being identified, with countless others falling through the cracks. The influx of people has led to border agents being overwhelmed lacking the necessary resources and overhead to keep up. With technology’s current influence on the world, why is there not a solution for ID fraud yet?
In November of last year I traveled to Israel and on the first night there I went to a group dinner in Tel Aviv where one of the people I met was Ron Atzmon, who for the past 20 years has been involved in advising startups and developing businesses on technology, security, and finance. During our meeting, he and I discussed the various problems associated with ID fraud, including costly manual ID authentication that is wrought with human errors. With a world that is plugged in as ours, he elaborated on the technology deployed by his latest startup, AU10TIX, an automatic service that authenticates official documents and IDs, in a matter of seconds.
Atzmon, who is the managing director of AU10TIX, describes it as airport level technology that is used to validate passports, driver’s licenses and other official documents, employed by banks and other financial institutions that operate a large majority of their business online. Atzmon and his team want to provide a technology service that will save time and money, while removing human error from the equation. In addition, AU10TIX will also generate records of IDs and documents scanned for future cross-referencing.
“Fintech vendors are seeking solutions that are both fraud-safe and regulations-compliant,” added Atzmon. “Our technology offers, fast turnaround speed, and complete security. With AU10TIX, an online fintech retailer can authenticate a client’s ID in just 10 seconds, saving valuable time and resources.”
How is this possible? Imagine you are an online retailer dealing with large financial transactions. You need to authenticate various documents and IDs required by regulations for online finance. AU10TIX will automatically validate all the documents required for the transfer of funds, and they claim it takes mere seconds to complete. Atzmon points out that AU10TIX is not just an advantage for their clients, but is also hassle free for the consumer. All that is needed on the customer side is the submission of the required documents and ID images, then technology will takeover and do the rest.
The technology used by AU10TIX is definitely a step in the right direction towards combating ID fraud. However, it still must contend with the more commonly accepted methods of OCR and data recognition, coupled with manual checks. If they can convince major payment and Fintech institutions to implement their solution, it could have a major impact on the way that companies authenticate official documents and IDs.