By Barley Laing the UK Managing Director at Melissa
Ecommerce fraud will rise from $44.3 billion in 2024 to $107 billion globally in 2029; a growth of 141%, according to Juniper Research. This has the potential for a significant negative impact on retailers’ bottom lines in an industry with tight margins, and also on their reputation.
This is putting ID verification processes firmly front and centre in the minds of retailers, even for those that sell low value items.
Today, many retailers are seeing the value of putting in place ID verification processes to make sure those buying their products and services are who they say they are.
But what are the options to undertake effective identity verification?
Obtain accurate customer contact data
To support the ID verification process a good starting point is having access to accurate customer contact data. With correct customer contact information, such as name, address, email and phone number, the identity verification process is more reliable.
What works well is using address lookup or autocomplete that provide an accurate and correctly standardised address as the user provides theirs, deduplicating data and delivering data cleansing activity across customer databases.
With accurate data ID verification technology can then confidently cross-reference the information provided against official databases, or other authoritative sources, without inconsistencies that could lead to false positives or negatives.
Undertake mobile ID verification
An increasingly standout identity verification option for retailers is mobile ID verification – matching a name to a mobile number.
With a global population of just over eight billion people, and around five billion having access to a smartphone, a mobile number is fast becoming a key part of the identity verification process and in the fight against fraud.
While matching a name to an address has long been a fundamental part of the ID verification process during customer onboarding, it’s evident that the adoption of mobile ID verification is becoming increasingly vital. Even more so as the proliferation of smartphones speeds up with just over six billion people worldwide expected to have access to such a device by 2029, while four billion people have a recognised postal address.
A key advantage of using mobile ID verification is that it utilises real-time data from mobile network operators (MNOs) to authenticate an individual’s identity with a high degree of accuracy. Unlike traditional methods that depend on semi-static data.
Bear in mind SIM registration obliges individuals to register their name, address, date of birth and, sometimes, a government-issued document or national ID. This means mobile numbers are increasingly becoming primary identifiers and digital identities.
Additionally, a valid mobile number is not only required for basic communications, but for critical activities, such as opening a bank account, registering for online services, or renting property in regions like the EU, India, and parts of Asia.
When compared to identity verification performed against regulated data sources, such as credit bureaus and government bodies, mobile ID verification can be more cost effective.
It can be easily integrated into existing systems as a software-as-a-service (SaaS) or cloud-based API, and deliver results in real-time.
Ultimately, mobile ID verification offers a dependable and streamlined method for authenticating users, preventing fraud, and meeting regulatory compliance.
Employ electronic ID verification (eIDV)
It’s important to recognise that mobile ID verification is one piece of the identity verification puzzle.
With fraudulent payments on the rise worldwide “always on” automated electronic ID verification (eIDV) is a great way to undertake ID verification.
It can, in real-time, cross-check the names and addresses – for proof of address – email addresses and phone numbers provided by prospective customers online. This can enable a good customer experience while effectively preventing fraud.
For the best result it’s preferable to obtain eIDV with access to billions of consumer records from reputable sources around the world.
This aids the delivery of an effective customer ID verification service, globally. Additionally, maturing technology is enabling eIDV to be offered at a range of affordable options, which is important for retailers operating on tight margins.
Check the IP address
Don’t forget the importance of the IP address as part of the identity verification process.
It’s possible to check if the IP address of a person looking to make a purchase matches or is near the verified physical address they have provided.
For instance, if someone is attempting to purchase a big-ticket item in a different country from their registered address undertaking additional verification checks would be sensible prior to it being approved.
In summary
With eCommerce fraud set to grow rapidly, it’s time for all retailers to recognise the importance of ID verification.
Mobile ID verification will provide a very important role due to the proliferation of smartphones, its affordability and easy integration into existing systems.
However, to deliver best practice identity verification processes that minimise fraud retailers should, along with mobile phone number, cross-reference additional contact data sources to confirm an individual’s identity.
Published 22/07/25
