What is a verification chatbot?

These chatbots allow customers to contact companies in a secure way that guards against fraudulent access. If, for example, you need to verify a customer's identity before sensitive details or financial information needs to be disclosed, to update payment details for standing orders, to correct financial information, or to apply for a financial product online, a verification chatbot can provide a layer of security without requiring customer services to go through the time-intensive task of asking a series of security questions.

How does a verification chatbot work?

Verification chatbots can streamline processes, enhance security, and reduce the risk of fraud or misinformation. These chatbots are typically programmed as scripted chatbots to follow predefined rules and workflows to ensure the accuracy and reliability of the verification process. Additionally, AI chatbots, which use Machine Learning (ML) and Natural Language Processing (NLP) technologies, may be employed to improve the user experience and the chatbot's ability to detect fraudulent or inaccurate information.

Moreover, by utilising technologies such as Two-Factor Authentication (2FA), these chatbots can securely identify customers using their mobile numbers. It’s simple to use: a customer is sent a One Time Password (OTP) via SMS or Voice and asked to enter the code into the chatbot to verify their identity, age or location.

Key uses of chatbots for verification include:

• Account Verification: Verification chatbots are commonly used in online services to confirm the identity of users during the registration process, sending an OTP to a user's email or phone number and prompting them to enter that code to prove they can access the provided contact information.

• Age Verification: In industries such as online gaming or alcohol sales, verification chatbots can confirm users are of the required legal age to access certain content or services, such as asking users to provide their date of birth or other relevant information.

• Identity Verification: Some organisations, especially in the financial sector, use verification chatbots to authenticate and validate the identity of customers before granting access to sensitive information or transactions, including verifying personal information or documents like passports or driver's licenses.

• Document Verification: Verification chatbots can be used to check the authenticity of documents, such as receipts, invoices, or identification cards, by asking users to upload images or provide specific details from the documents.

• Transaction Verification: In online banking or eCommerce, verification chatbots can confirm and authorise transactions by sending users a confirmation code or requesting additional information to ensure the security of financial transactions.

What are the benefits of a verification chatbot?

Verification chatbots offer several benefits across various industries and applications due to their ability to confirm and validate user-supplied information. Here are some of the key benefits of using a verification chatbot:

• Improved Security: Verification chatbots enhance security by confirming the identity of users, which helps prevent unauthorised access and fraudulent activities.

• Enhanced User Experience: By automating the verification process, chatbots can provide a seamless and user-friendly experience 24/7. Users can quickly and easily verify information without requiring time-consuming manual processes or interactions with human agents.

• Fraud Prevention: Verification chatbots can help organisations detect and prevent fraudulent activities by cross-referencing user information and flagging suspicious behaviour or discrepancies.

• Regulatory Compliance: In industries with strict regulatory requirements like financial services and healthcare, verification chatbots can help organisations comply with legal and industry-specific regulations by ensuring user data is accurately verified and protected.

• Reduced Human Error: Human errors in manual verification processes can lead to costly mistakes and security breaches. Chatbots reduce the risk of such errors by following predefined protocols and rules.

• Scalability: Verification chatbots can handle many verification requests simultaneously, making them highly scalable and essential for businesses and services with high user registration or verification demands.

To start with verification chatbots, you can build them with CM.com’s Conversational AI Cloud. Our team can provide the support to identify customers, secure online information, and future-proof customer engagements.