Age-restricted businesses are prone to various threats concerning age verification. This is because the shift from in-store and physical to digital operations has made it harder for businesses to identify their customers. Businesses offering online services and product purchase makes it difficult to ensure that the customers on the other side of the screen satisfy age requirements. Therefore, businesses need robust age verification solutions to restrict minors from exploitation.
Industries like e-commerce, online gaming, gambling, tobacco, and liquor need to incorporate trustworthy, reliable, and authentic identity verification services to accurately verify customers in real-time and prevent minors’ access to age-oriented platforms. This way businesses can ensure KYCC obligations. The blog covers the major industries that are liable to carry authentic age verification.
Industries Obliged by Authorities to Conduct Online Age Verification
Online age verification is commonplace these days. As per Shufti Pro Funding, the industries are vestige their resources in AI-enabled solutions. These include:
Age Verification in the Gambling, Gaming, and Poker Industry
The gaming and gambling industry is rapidly growing and is expected to cross $1.6 billion by 2023. As per the stats by Newzoo, there are over 2.7 billion global gamers which makes it evident that the online gaming industry is sheltering billions of players. This is why online gaming and gambling platforms need authentic age checks as it is prone to various threats and minor-based challenges.
The UK Gambling Commission proclaimed that a huge number of minors onboard platforms for betting and playing other money-involved games without their elders’ consent. Their age ranges from 11-16 which makes the situation alarming. Therefore, AO gaming and gambling platforms need robust age verification mechanisms to validate the age of players prior to registration.
Age Verification in Digitally Operating Tobacco and Liquor Stores
As per various estimates, minor-based tobacco and alcohol consumption is skyrocketing while taking the lives of millions. Tobacco products like e-cigars, cigarettes, pipes, and vapes are illegal for customers under 18 years of age to consume in public. As per the regulatory authorities and Shufti Pro News highlights, the minimum age limit for alcohol consumption and tobacco purchase is 21.
The global tobacco market is expected to rise to unexpected levels which is why minors are massively getting attracted to it. And because of digital stores and e-markets, the access is not that difficult. Minors simply put in false information and as supporting evidence they use their elders’ documents. Therefore, online merchants should verify age before allowing customers to purchase AO products.
Age Verification in Drug Industry
Regulatory authorities have imposed strict regulations on the cannabis industry, due to which criminals started using illegitimate ways to smuggle it. These include illegal imports and trafficking. However, the healthcare industry is allowed to use marijuana for health-related concerns which is fueling the massive growth of this drug manufacturing. This legalization has made minors’ access easy because criminals manage to get their hands illegally on marijuana and sell it to minors at high prices.
Therefore, industries need age verification online, firstly to make sure that no criminals are illegitimately accessing marijuana and secondly to prevent minors from buying it.
Age Verification in E-commerce Sector
Where digital transformation is bringing advancements to the table, they are simultaneously creating harmful circumstances. The majority of the e-commerce services and products are now available online easily and some platforms lack authentic identity verification and KYCC checks. This increases the chances of minors’ manipulations. The products include alcohol, e-cigars, cigarettes, and subscription to AO platforms and sites.
However, as regulation mandates, the vendors, merchants, and services providers should conduct authentic age verification while validating identities. In case of failure to adhere, businesses can face hefty penalties. The e-commerce sector further faces the following issues:
Dodging the Payment Authentication Checks
Minors of today are enough sophisticated and bypass payment and credit card authentication checks with minimal effort. Minors do not satisfy the age limit which is why they can not make purchases that have restrictions, therefore, they use their elders; credential and credit card details to make purchases and escape the payment authenticity checks.
Increased Chances of Chargeback Fraud
All the world’s businesses are adopting digital methods for transactions and making payments, among these use of credit cards is the most common. However, age verification online helps in mitigating the chances of threats and payment scams as well as minimizing the chances of chargebacks. Criminals these days, buy online products and services, keep them for a minimal time, and apply for refunds. This way businesses have to face losses and for countering them, industries should employ age verification solutions.
To combat age-related fraud and the chances of minors’ exploitation, industries need robust age verification solutions. Through this, they can not only prevent instances of minors’ exposure to criminal threats but also ensure KYCC compliance.