age verification

Age Verification Solutions – Preventing Underage Sales Among Minors

Covid 19 pandemic has led to a redefining turn for the digital era. The majority of people are getting engaged with online services and applications more than ever before. Hence, leading companies are redeveloping their businesses strategies with a major focus on providing online services. Delivering services online is an advanced, beneficial and futuristic approach. But how can we prevent youngsters from accessing adult-oriented products and services? That is the reason why online age verification plays a critical role.

Importance Of Age Verification

Minors can easily access various services on online platforms. Online platforms include gambling sites, dating sites, and other adult-oriented sites that are harmful to children, that’s why age verification is crucial. For businesses operating online, age verification is a legal obligation. As online entertainment has become more extensive and takes place through the web or mobile platforms, adult supervision is important. Online merchants need to know that online age verification is crucial in the same way they are performed in alcohol and drug stores physically. These businesses need robust age checks to impose age restrictions and prevent kids from accessing services meant for adults. 

Consequences Of Not Having An Age Verification System 

If businesses fail to implement adequate age checks they will have to face hefty fines and non-compliance penalties. It might also negatively affect the business’s reputation whether they are operating online and offline.

Following are the risks for businesses that lack reliable age checks:

Penalties For Non-Compliance

Businesses need to adhere to GDPR standards. It ensures that the sensitive data of the user should be protected and secured. It helps in performing age verification of the user during the online onboarding process. If a business fails to fulfill the GDPR requirements, it is imposed with a fine of 23 million US dollars.

Moreover, the Children Online Privacy Protection Act (COPPA) has a minimum non-compliance penalty of $160,000 that is later increased to $43,280 for each violation.

Market Reputation At Risk

Providing a better customer experience is of the utmost importance for any business that needs to increase its growth online. Digital onboarding is an effective approach to ensure a seamless user experience. Hence, if the company lacks sufficient age checks during onboarding, it might damage the reputation besides facing non-compliance penalties.

Chargebacks 

Businesses face financial loss as parents claim chargebacks of unapproved transactions made by their children. If these businesses had integrated an age verification tool in their applications, it could prevent chargebacks losses. This mechanism helps businesses to monitor the access of age-limited products or services and save themselves from financial losses.

Businesses That Needs Age Verification

At present, the majority of the companies have realized the need for digital age verification software. With rapidly growing mobile traffic on various applications, underage access and the purchase of adult-oriented products to kids are major concerns. Let’s have a look at industries that require age verification solutions:

Alcohol And Drug Selling Stores

The FDA law states that the purchase of cigarettes to minors is strictly prohibited in the US. Moreover, 21 is the legal age requirement for selling alcohol to individuals in the US. Therefore, alcohol and drug-selling retailers must verify the age of their users.

Gaming Platforms 

Players can communicate with anyone on gaming portals as it is open to the community. Fraudsters take advantage of this platform to scam or harass minors online. Therefore, gaming portals require age verification solutions to protect youngsters.

Gambling Portals

Gambling sites are regulated to a higher extent similar to alcohol and drug selling. Minors get addicted to gambling and betting games as they are easy to access. Age verification during the onboarding of users on gambling portals restricts minors from playing these games.

Dating Websites

The traffic on online dating portals has significantly increased. These sites have a lack of age restriction measures due to which youngsters can access their services without any friction. Underage dating is a crime in many countries which results in legal action. With robust age regulations and verification mechanisms, dating platforms can supervise underage access to their service and prevent legal actions.

Conclusion

Digital age verification solutions help businesses to verify the customer’s age and identity during the onboarding process. It utilizes a facial recognition mechanism and ID document scanning for performing identity and age verification in real-time. It prevents multiple frauds and restricts underage access to adult-oriented content and services. With frictionless customer onboarding, businesses can ensure maximum user satisfaction.

Demi Jenkins

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