Innovation and Regulation Protect Brits in the Sharing Economy
London – In the midst of Global Sharing Week, the explosive growth experienced by the sharing economy is top of mind. Set to be worth an estimated £335 billion by 2025[1] in the UK alone, nearly a quarter of the population are involved in some way with the sharing economy[2] – whether by booking a rideshare, transferring funds via a P2P platform or buying a product off Etsy.
Furthermore, the millions of transactions taking place across companies in the shared marketplace each day has led to an increase in financial crime and other nefarious activities. Moreover, individuals who have devised ingenious techniques of laundering money, continue to line their pockets.
Micro-laundering – which involves transferring large sums of money by scattering it over thousands of electronic transactions – is putting the very foundations of the shared economy in question. Europol estimates £3 billion, or three to four percent of the continent’s annual criminal takings, is micro-laundered.[3]
The benefits of the sharing economy will continue to be eroded if a reliable sustainable solution is not introduced to not only match, but surpass the sophistication of bad actors, says to Zac Cohen General Manger at Trulioo.
Zac comments; “To combat emerging trends in money laundering an agile, sophisticated, solution is required. Using proper fraud prevention techniques, such as authenticating identity traits across multiple trusted sources while leveraging up-to-date technology and data, is a step in the right direction.
Zac continues: “By placing electronic identity verification at the beginning of the customer onboarding process, online platforms can prevent fraud by simply keeping bad actors at bay.”
“The foundation of the digital economy begins with effective identity systems that mitigate the risk of fraud, establish trust between transacting parties, and ensure products and services are delivered seamlessly. As the sharing economy continues to grow, deploying effective identity verification protocols, hardwired into business processes from inception, will ensure fraud detection and mitigation remains a cornerstone of the shared economy.
About Trulioo
Trulioo is a global identity and business verification company that provides secure access to reliable, independent and trusted data sources worldwide to verify consumers and business entities online. Trulioo’s marketplace of global identity data and services, GlobalGateway, helps organizations comply with Anti-Money Laundering (AML) and Customer Due Diligence (CDD) requirements by automating Know Your Customer (KYC) and Know Your Business (KYB) workflows. Trulioo supports global clients to verify five billion customers and 250 million business entities in over 195 countries – all through a single API integration. Named as a CNBC Disruptor 50 Company, Trulioo’s mission is to solve global problems associated with verifying identities by powering fraud prevention and compliance systems for customers worldwide in an effort to increase trust and safety online. For more information visit: trulioo.com
