As the healthcare sector is moving towards complete digitisation and remote operations, criminal activities such as medical identity theft, prescription fraud, and payment scams are also rising. Similarly, the emergence of e-pharmacies is becoming an attraction for fraudsters to carry out malicious activities. For instance, account takeover for making payments, prescription fraud to buy restricted medicines, and false insurance claims to avail other medical benefits.
Revenue in the e-pharmacy segment is projected to reach $31.64 billion by the end of 2023. Patients’ rapid adoption of online drug stores is further fueling the growth of this sector. Similarly, e-pharmacies are bringing convenience to individuals by making purchase of drugs easier.
This blog covers ways identity verification solutions safeguard e-pharmacies.
ID Fraud and Need for E-Pharmacies to Secure Their Operations
Patients have been physically visiting stores to buy medicines for ages. However, after the pandemic took over, pharmacies went online to assist customers without exposing them to the virus. They use online stores where patients upload their prescriptions, select payment methods, and place an order. With this convenience-driving initiative, e-pharmacies are undergoing high threats of fraud.
Imposters use fake prescriptions to buy medicines that can not be purchased without a doctor’s permission. Similarly, fraudsters hack into legit patients’ accounts and make payments for their drugs that are expensive and rarely available.
There is a growing need for e-pharmacies to build efficient ID verification mechanisms. This way they can identify imposters at the time of registration as well as check-out. Ultimately, helping online stores to ensure medicines reaches the right patients.
Role of Automated ID Proofing
AI-powered identity authentication solutions provide real-time identification that helps prevent fraud attempts. Furthermore, using document validation during digital onboarding further helps counter prescription scams. To ensure data privacy and make overall operations more secure, e-pharmacies need to meet the following requirements;
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Swift, Accurate, and Secure Onboarding
In order to make sure legit patients are making an online purchase, e-pharmacies require efficient ID verification mechanisms. Online stores can enhance their operations with AI-powered services as they use Machine Learning (ML), which can analyse huge datasets. Furthermore, this helps e-pharmacies minimise friction while facilitating more patients.
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ID and Age Verification
As access to online stores is becoming easier, minors are also making their way to buy restricted drugs. For this, they use their parents’ credentials and payment details to help them clear identity verification checks. By using real-time selfie-based identification and liveness detection, e-pharmacies can restrict access of underaged buyers.
Online drug stores also need robust identity authentication services to ensure they stay in line with the Know Your Customer (KYC) regulations. AI-powered biometric identity verification systems help e-pharmacies validate patients’ presence at the time of purchase.
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Authenticate Insurance Papers and Prescriptions
Fraudsters use fake prescriptions for online purchases of medicines. Furthermore, they avail false insurance claims to buy expensive drugs or avail other medical benefits such as free medicines.
By using synthetic identity fraud, importers easily steer clear of identification checks. This way, they deprive legit patients of their rights. To ensure e-pharmacies are not assisting fraudsters, they require better ID verification mechanisms.
Benefits of Integrating Identity Verification Services for E-Pharmacies
The growing number of patients and their demand for convenience while placing an online order is driving e-pharmacies towards employing AI-powered identity authentication solutions. With the increase in fraud attempts and cyber threats, it has become mandatory for drug e-stores to integrate prevention measures.
By deploying identity verification services, they can identify fake prescriptions and buyers prior to placing an order. The next section shows more benefits these solutions provide to online stores.
Eliminates Discrepancies and Friction
The global e-pharmacies market is predicted to top $191 billion by 2027. This is mainly because of the increase in smartphone users, accelerating rapid adoption of online services.
E-pharmacies can not leave identity authentication unattended. With AI-powered solutions in place, online stores can reduce friction and harness tremendous growth while keeping data security intact.
Mitigates Medical ID Fraud
The use of synthetic identities helps fraudsters commit medical identity theft and steer clear of the authentication process. Ultimately, they can buy restricted medicines under the name of some other patient. This makes it challenging for online stores to identify sophisticated fraud attempts.
With efficient identity verification services in place, e-pharmacies can identify buyers in minimal time. AI-powered solutions provide instant analysis of backgrounds as well as facial feature recognition that provides additional layers to the identification process.
Final Verdict
AI-powered ID verification solutions are streamlining the pharmacy’s operations by employing advanced tools for patient onboarding. With services like biometric recognition, liveness detection, and document validation, online synthetic identity fraud prevention mechanisms can safeguard online drug stores. Ultimately, e-pharmacies can not stay compliant with KYC regulations while providing a secure experience to legit patients.
