Identity Verification Frequently Asked Questions
- What is identity verification?
- Why should a jeweler verify identity?
- How does identity verification fit in with my USA PATRIOT Act anti-money laundering program?
- How does identity verification fit in with my FTC’s Red Flag Rule compliance?
- How does identity verification prevent fraud?
- How do I use this service?
- Is it expensive?
- Who is Veratad Technologies?
- Where can I learn more?
- How can I sign up?
Identity verification is a process by which a person’s identity (name, address, date of birth, etc.) is authenticated via the internet against public data bases to confirm that the person proffering a credit card or other payment is in fact the person associated with this identity. This includes determining if the person is listed on the government watch list (OFAC list) for suspected money launderers and persons suspected of financing terrorism.
2. Why should a jeweler verify identity?
Verification of identity serves a number of purposes: its aids in your compliance with legal obligations under the USA PATRIOT Act and the FTC’s Red Flags Rule, and is helps to prevent fraud – preventing chargeback’s to a merchant accepting a credit card.
Your AML program requires you to fully identify each supplier and customer with whom you do business. The identity verification service we offer will assist you in determining if the persons with whom you do business are actually the persons or entities they claim to be. Further, it will satisfy that part of your AML program which requires you to check the OFAC list to see if the person or entity is a known supporter of terrorism or is suspected of money laundering.
Your Red Flag Rule Program is designed to detect and prevent instances where purchases are made by a perpetrator of identity theft. By verifying identity, you can help to ensure that the person offering the credit card is in fact the owner of that credit card, and not someone who has stolen the identity.
If a person who has stolen an identity or even just a credit card and answers one of the identifying questions (address, date of birth, etc.) in a manner that does not match up with public data bases, the service will notify you – and you will be positioned to refuse the transaction. You will not loose money on the transaction, nor will you be subject to charge backs by the credit card company who later discovers that a fraudster bought merchandise at your store.
You will acquire simple identity information from your customer or business partner, and using the internet, you will enter that information (simple fields to complete) and you will instantly know whether the data you have been given matches the identity of that person. It only takes moments!
JVC members, through a partnership agreement with Veratad Technologies will be able to purchase this service at a deeply discounted price. There is a one time set up fee, a monthly subscription, and a per use fee – depending on how often you access the service, it will cost you less than $1000 per year. Much less expensive than even one instance of fraud!
JVC researched this field and learned that Veratad Technologies is a leader in identity verification. They have numerous clients, including other trade associations, with whom they partner and for whom they perform this service, and more. And, they are members of the JVC.
There is a dedicated web site explaining our partnership, and the service and how it works. Visit www.veratad.net/jvc. There is even an online demonstration of how the service works – if you attend the demonstration on line, Veratad will give you a $10 dollar gift card to Starbucks!
This service is a benefit of membership in the JVC. If you are already a member of the JVC, you can visit our web site – www.jvclegal.org – to sign up for the service. If not, sign up for membership today – and the service will be immediately available to you.