Financial Organizations Grapple With Fraud Amid the Rise of Digital Nomads

What’s going on:      

A global survey conducted by Regula, a global developer of forensic devices and IDV solutions, reveals that 4 in 5, or 80%, of financial organizations worldwide are experiencing an increase in foreign document verification cases. Businesses located in countries popular with digital nomads like France, Turkey, and the U.S. reported being affected by this increase. The survey also found that 62% of these businesses have been forced to verify foreign documents manually, according to Business Wire. 

The survey attributes the challenges faced by financial organizations to the growing number of digital nomads.

Why it matters:         

The increase in digital nomads is disrupting traditional workforce structures and posing unique challenges for financial organizations worldwide. 

The rise of digital nomads presents challenges for financial institutions, FinTech businesses, crypto brokers, and insurance companies. These organizations must adapt to the growing digital nomad community while maintaining robust fraud prevention measures. Incomplete databases of document templates and manual verification processes can lead to less accurate and thorough document verification checks, increasing the risk of fraud.

How it’ll impact the future:

As the digital nomad community continues to grow, financial organizations must adapt their processes and technologies to meet the needs of this expanding customer base. The increasing presence of digital nomads in the workforce will require financial organizations to adapt their operations, policies, and services to cater to this growing segment.  

To address these challenges, financial institutions might implement identity verification solutions that encompass both official document verification and biometric verification. This will provide strong protection against fraud and improve productivity.