Buy or Build? How to Get Started with New User Verification
New user verification is an integral part of security for e-commerce, entertainment, and technology companies alike. Data from the Federal Trade Commission shows that total fraud and identity theft chinese malaysia phone number list cases have nearly tripled over the last decade. New user verification solutions aim to combat these crimes by confirming the identity of a new user during the registration or onboarding phase of a service or platform.
The decision to build or buy a user verification system isn’t always straightforward. Technical resources, cost, and scalability are just a few factors that can help your business choose to buy an out-of-the-box verification API or create a custom solution in-house. Keep these pros and cons in mind as you weigh your options.
Build vs. buy: understanding your options
Before we discuss the pros and cons of each path forward, let’s first understand what the new user verification process entails.
New user verification is when a customer registers for a new account or service, and the business requests personal information such as the customer’s name, birthdate, and address. The company then verifies the accuracy of this information, which might involve simple steps like confirming the customer’s email or phone number through a one-time passcode.
For more sensitive transactions, such as opening a bank account, applying for a loan, or transferring large amounts of money, businesses might cross-check the provided details against various databases to ensure they align with existing records. Some companies use biometric verification in addition to one-time passcodes, such as fingerprints or facial features.
