Identity Verification for the Rescue of Freelance Industry
With the technological advancements, the ways of business dealing have also changed. Now there is no obligation of physical meetings, now trading is done over video meetings. The freelance platform provides ease for business interactions. The employees and employers meet over an online website and agree on a contract.
The freelance industry is assumed to grow at a rapid pace in the future. As per the current trends, more than half of US citizens will be doing freelancing by 2027. By studying these stats, it can be said that freelancing will be above all other sectors. Due to its benefits, it is considerably admired. The workers can work from their home at flexible hours and they are their own boss. The freelance sector is expanding globally and gives the comfort of international dealings. A freelancer can communicate with a person miles away without any issue. Because of freelancing, mobile wallets, and cross-border payments services are rising. The benefits of freelancing are beyond limits but it also has some issues. For instance, fake jobs or fraudulent experts for a specific task.
A large community is moving towards freelance platforms there is also a risk of identity frauds. These frauds can be countered by identity verification of the buyers and sellers on the freelance platforms.
The process of confirming the identity of a person is known as identity verification. As freelancing is done over the internet, identity verification should be performed over online platforms. Luckily there are automated and remote id verification methods that can verify a person with a meeting. The verification is conducted by online and AI-powered software. Financial services named this method as know your customer, it is the set of two verification methods explained below:
Biometric authentication is not a new term for the masses nowadays. Every new smartphone has a fingerprint scanner integrated into it along with facial recognition software. Users are using fingerprint verification for mobile phone unlocking.
The process in which a document is checked against fake or false ones is known as document verification. Fraudsters make fake or steal legitimate id documents for identity fraud.
Walkthrough of Identity Verification
A freelancer should be verified during account sign-up. He must be screened through the above verification for giving him access to trading.
Below is the process of online id verification:
- The freelancer gives his personal details to the website like his first and last name and residential address
- Then he is required to upload documents supporting the above information e.g an id card or international passport
- These documents are verified by the document verification process and data is validated
- For biometric verification (facial recognition) the freelancer have to capture a live selfie
- Selfie is matched with photo id on document
Benefits of ID verification for the Freelance Industry
Let’s understand the benefits through an example of a seller scam. In this scam, a freelancer agreed to complete a task and asked for some advance payment, and got paid. After some time the freelancer disappears and it is revealed that he was not a legitimate freelance. By verifying the identities of freelancers, this risk can be mitigated. Not only freelancers but also employers should be screened. Because there may be a scenario where an employer is involved in a scam.
ID verification will also help in securing the financial payments of buyers and sellers. As the freelance platform works as a third-party mediocre. It is the obligation of the website to assure legitimate identities on its channels. Due to the involvement of finance, it is also at risk of online financial scams. ID verification will help in making the overall freelance environment secure and reliable.
Summing it Up
The skyrocketing speed of the freelance industry can hit if it does not deal with identity scams and payment frauds. Currently, online id verification can help in this scenario by performing all types of verification using a phone or webcam. Buyers and sellers will have more trust in freelance platforms.