How do you know which organizations your business partners with? And how well do they know your business?
As digital transformation accelerates, and businesses face increasing cyber risks and vendor identity fraudis a question that needs to be asked.
Today’s business environment is full of risks. Business-oriented cybercrimes have become more advanced, and criminals are using sophisticated techniques such as phishing, business email compromise (BEC), and even. the creation of fake shell companies.
For businesses, the consequences of falling victim to such attacks are serious. In addition to financial loss, they risk damaging their reputation and losing the trust of customers, partners and regulators. The complexity of business networks, often involving multiple organizations across borders, exacerbates these risks. Many businesses do not have a coherent way of verifying their identity, which makes it easier for fraudsters to falsify fragmented and out-of-date information.
Against this background, the need to define a single, authoritative source for business information has emerged as a critical issue. From security to regulatory standards, unified business information is important not only for reliability but also for processes such as obtaining loans and working capital.
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Business Information: A Shield Against Fraud
PYMNTS Intelligence shows that many managers report that they are forced to close the door to new customers because the former lacks proper systems to eliminate fraudsters.
And this costs them opportunities – very small businesses with little history and few ways to identify themselves. Financial institutions rely heavily on accurate business information when assessing creditworthiness and approving loans. Inaccurate or inconsistent information can lead to a delay in receiving the working capital, or worse, a loan rejection.
“No one has put together a single, pre-populated list, a comprehensive view of every business worldwide, and a two-way platform that allows parties to connect securely together with each other and create real-time, mutually agreed upon monitoring,” CEO of Markaz Hany Fam that said at PYMNTS. “Thirty percent of small businesses are denied basic services like credit cards, bank accounts, etc., because they cannot be verified. And we see that number again and again all over the world. ”
In another interview, Family stressed that in those days “know your customer” and “know your business” important initiatives, financial institutions and other companies lack the right approach identify accidents and deceivers that could leave them open to sanctions (for breaching sanctions lists) or leave them vulnerable to projects.
Like Show Identity CEO Roger Desai tell PYMNTS, it’s great a crime like a cheat to enter Change Health Care provided more transaction information. This becomes fodder for scammers looking for “repeat” relationships that can give them grist for business fictitious projectsfake invoices and and even employee data suitable for creating artificial identities.
Providing accurate, up-to-date, and complete reporting of business information is key to reducing the risk of fraudulent activity and ensuring that businesses they can do business with confidence with certified organizations – especially like themselves the transaction the trend towards digital B2B payments. Corporate information can help verify authenticity of parties involved in transactions, to reduce the risk of fraud.
But while the need for a single source of truth for business information is clear, creating one is not an easy task. Businesses face a number of challenges in defining and storing aggregated data.
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Creating a Unified ID Solution
Many businesses operate with protected data resources that contain various types of personal identification information. Integrating these systems into a single, powerful source of truth is often needed investment in technology and data integrity commitments.
At the same time, a business information system that works in one country or industry may not be recognized in another. The lack of global standards for the verification of business information creates problems of cooperation, especially for international companies. Governments, regulatory bodies and industry associations must work together to develop common protocols for the management of business information that can be used across borders.
Businesses also need a balance between exposure and privacy. While participants need access to certain identifying information, businesses it must ensure that important data is always protected. Navigating the complexities of data privacy regulations, such as the European Union’s General Data Protection Regulation (GDPR), adds additional challenges.
However, advances such as artificial intelligence (AI) and machine learning (ML) can help businesses analyze large amounts of data to detect discrepancies, detect fraud and ensure data integrity. it is always on time. These technologies can also help automate the verification process, reducing the time and costs associated with manual data checking.
And the market is to answer to this requirement. During the summer, the business information platform Niva started after collecting $3.3 million for its authentication solution, while he Verity raised $18.8 million to support its growth Verified payment platform.
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