April 19th, 2023 | Sterling

Why is Identity Verification So Important in the APAC Region?

Recent data hacks in Australia have highlighted the importance of protecting our identities from fraudsters, and other criminals who, may wish to use the information for nefarious purposes.

This trend isn’t limited to Australia. A 2022 survey by Experian found that a quarter of consumers across the Asia Pacific region have fallen victim to online fraud, with consumers in China and India representing the highest proportion (29% of consumers in each market).

Considering the growing concern around data privacy and identity fraud, we wanted to examine how identity verification solutions can help protect customers and businesses.

What is Identity Verification?

Identity verification’s best practice involves a review and matching of a person’s identity documents against the person who has provided the documents. This helps us to determine that we are dealing with the right person and that the person is who they say they are.

Identity verification has historically been conducted via a face-to-face, or in-person interaction; however, innovative biometric technologies are now making it possible to conduct identity verification digitally.

Last year, Sterling partnered with global identity company Yoti, to launch an exclusive portable digital identity offering in 2023. In this collaboration, Sterling’s international customers will be able to leverage an exclusive digital identity verification workflow, allowing them to take an identity-first approach, where a candidate’s identity is verified before completing other background checks, and before actually being hired. Furthermore, candidates who verify their identity through Sterling and Yoti will be able to seamlessly create a secure, reusable digital identity. Individuals will then be able to use their digital identity for future job opportunities, age verification, and any process requiring identity verification.

How Can Identity Verification Help Employers Mitigate Risk?

Identity verification helps employers minimise identity deception in several ways:.

  1. Identity verification helps to confirm the identity of prospective employees. This is vital as the employment of a new hire is a major investment for any business, and it is important to get the hiring decision right in the first instance and know exactly who’s joining your workforce.

With the level of identity fraud as high as it is in the Asia-Pacific region, businesses need to verify that prospective employees are not applying under fraudulent identities. This is particularly the case when hiring timeframes are being streamlined across industries, becoming shorter, and fraudulent candidates may easily slip through and cause damage to the business.

Incorporating identity verification solutions into the recruitment process enables businesses to mitigate workforce risk and helps ensure they’re hiring safely and building workplace trust.

  1. Identity verification solutions that meet regulatory requirements. Some countries require identity verification before an employee begins work. In Singapore, for example, an employer must maintain employment records of employees covered by the Employment Act, which includes their NRIC (National Registration Identity Card) number or foreign identification number.

Failure to conduct due diligence on applicants can have serious legal repercussions, especially when dealing with other businesses or clients that could affect their data security or any confidential information that could result in reputational damage and also financial penalties by regulators.

  1. Identity verification helps to ensures your candidate has provided accurate information, enabling documents used during background screening to be matched back to the candidate.Occasionally, people change their names informally, such as hyphenating their last name after a marriage, or they might use a middle name as their first name. As a result, variations, flags, or hits may occur, which could delay or cause an issue. We understand that errors don’t always result from attempts to defraud you. Your candidate might just have made a genuine mistake,

Having the right identity verification solution in place may prompt your candidates to exercise greater care and diligence when providing information during the hiring process.

How Can Sterling Help?

Sterling are experts at delivering identity verification solutions and other background screening services to businesses throughout the Asia-Pacific region.

We have nuanced experience and knowledge of each of the markets in which we operate and can therefore offer tailored advice and services to suit your unique hiring needs.

If you’re interested in learning more or incorporating digital identity verification into your hiring program, contact us at info@sterlingrisq.com to discuss your needs.

This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.