Henry Patishman, Executive Vice President Identity Verification Solutions at Regula outlines the growing role of identity verification in hotels and casinos.

The risks to hotels and casinos

Identity verification has become a critical factor in ensuring secure, compliant and customer-friendly environments.

Fraud is a constant threat, not only putting businesses at risk of financial loss but also jeopardizing customer trust.

In the hospitality sector, identity verification solutions do more than secure transactions; they allow hotels and casinos to streamline check-ins, create safer environments and maintain compliance with regulations such as Know Your Customer (KYC) and anti-money laundering (AML) requirements.

Reinventing identity verification in hospitality

Picture this: you’ve just arrived at your destination after a long journey, only to find yourself stuck in a line, juggling your luggage while the front desk staff manually enters your information.

The check-in process drags on and the once-exciting anticipation of your getaway fades.

This scenario is all too common in hospitality – a sector that thrives on delivering exceptional experiences but often falters at the first point of contact.

At the heart of this problem is the outdated reliance on manual data entry.

When travelers are required to input their information from identification documents, human error can lead to significant delays and frustrations.

Misentries not only waste time but can also compromise the accuracy of customer profiles, leading to a ripple effect of inefficiencies.

What if we could turn the clumsy task of identity verification into a streamlined experience, leveraging automation to enhance customer satisfaction and operational efficiency?

Automation is everything

The answer lies in data entry automation.

Harnessing technologies such as machine readable zones (MRZ) and optical character recognition (OCR) can reduce human error and significantly enhance the accuracy and efficiency of identity verification processes in hospitality.

MRZ allows for the quick extraction of essential data from identity documents, while OCR technology ensures that this data is accurately captured and processed.

Together, they create a seamless experience for customers, improving both security and service quality.

This means that instead of struggling with form-filling, travelers can have their information captured in an instant, allowing for a faster, smoother check-in process.

A single photograph of an ID can populate a customer profile within seconds.

This shift from manual entry to automated systems not only speeds up operations but also empowers staff to focus on delivering outstanding service rather than getting bogged down in paperwork.

Implementing the technology

Adopting data entry automation can be approached in two primary ways: through software solutions or hardware systems.

Software solutions integrate seamlessly with existing platforms via APIs, enabling digital onboarding that captures data in real-time during the booking process.

On the flip side, hardware solutions like document readers provide on-site verification, allowing staff to swiftly scan IDs while also validating the authenticity of documents using advanced detection algorithms.

This dual approach ensures that both online and in-person interactions are streamlined, secure and efficient.

Applications across the industry

How these automated solutions can be practically applied in various scenarios within hospitality sector:

1. Seamless digital onboarding: For online hotel and booking platforms, automated identity verification can drastically improve the user experience. By allowing guests to upload their ID documents, businesses can process these verifications in real time, minimizing the potential for errors and enhancing the overall booking experience
2. Remote check-ins: Airlines are leading the charge with innovations like remote check-in through mobile apps. Passengers can upload photos of their IDs, which are quickly processed, transforming a traditionally tedious task into a matter of seconds. Why are hotels lagging behind?
3. Self-service kiosks: Some hotels are integrating self-service kiosks equipped with scanning technology. This not only speeds up check-ins but also reduces the need for direct staff interaction, an important consideration in a post-pandemic world where contactless service is preferred
4. Enhanced in-person experiences: Even traditional check-in desks can benefit from automated systems. By equipping staff with document readers, they can scan IDs and update customer profiles quickly, minimizing wait times and improving the guest experience

The broader impact of automation

The benefits of data entry automation go far beyond just convenience.

By streamlining the process, businesses can save time, allowing staff to focus more on engaging with customers rather than wrestling with paperwork.

This efficiency not only makes for a smoother check-in experience, but also boosts customer satisfaction, encouraging travelers to return to brands that value their time.

Plus, with automation, the risk of human error is greatly reduced, ensuring that customer information is accurate and reliable.

On top of that, these systems enhance security by detecting forged documents, adding a crucial layer of protection for everyone involved.

Identity verification in casinos: a high-stakes necessity

In the casino environment, the focus of identity verification shifts from the guest experience to compliance, AML measures and fraud prevention.

The stakes are incredibly high, not just in terms of financial transactions but also in adhering to stringent legal standards.

Casinos must ensure that patrons meet legal age requirements and eligibility criteria for gaming, making effective identity verification essential.

Advanced identity verification tools play a crucial role by enabling instant age verification and ensuring that minors and self-excluded individuals are prevented from entering gaming areas, thus safeguarding the integrity of the establishment and its operations.

Lastly, fraud prevention remains a top priority as casinos face various forms of deceit, from card and ID theft to manipulation of gaming systems.

Preventing fraud in casinos

A liveness-centric approach is essential in casino fraud prevention, as it ensures that individuals presenting identification are genuine, living persons rather than synthetic identities.

A survey from Regula indicated that nearly half (43%) of companies prioritize identity fraud prevention, underscoring the need for thorough identity verification methods that go beyond standard checks.

By combining biometric cross-referencing and real-time document authentication, casinos can detect inconsistencies, such as altered portraits or mismatched biometric data, which may signal fraudulent attempts.

As AI-generated fraud rises, ID verification solutions will increasingly need to verify the presence of a live individual, making liveness verification a crucial aspect of future fraud prevention strategies.

Grand Casino Luzern’s KYC journey

To illustrate the transformative power of identity verification, consider Grand Casino Luzern.

The casino implemented an advanced identity verification system for its online platform to comply with Swiss KYC regulations, which require verifying customer identities before gaming activities.

By partnering with a technology provider, Grand Casino Luzern streamlined its check-in process, enhancing data accuracy and reducing manual compliance work.

This upgrade created a secure environment for guests while ensuring compliance with regulations.

It also significantly improved the customer experience through faster registrations, reinforcing the casino’s reputation as a trusted gaming establishment.

A safer, smarter hospitality industry

The hospitality industry’s appetite for secure and seamless identity verification solutions is set to grow.

The future of identity verification in hotels and casinos will likely see a broader adoption of biometric technologies, such as facial recognition and fingerprint scanning.

These innovations provide an additional layer of security that goes beyond traditional ID checks, ensuring that the person presenting identification is indeed the document’s rightful owner, thus reducing the risk of fraud.

At the same time, with consumers becoming more aware of data privacy, hotels and casinos are expected to adopt identity verification systems that prioritize transparency and give guests greater control over how their personal data is used.

Furthermore, the integration of blockchain technology has the potential to revolutionize data protection within identity verification.

By securely storing encrypted guest data, blockchain minimizes the risk of data breaches – a critical concern in an age of widespread cyber-threats.

As regulatory landscapes evolve, hospitality providers may leverage advanced compliance tools that integrate seamlessly with identity verification systems, ensuring adherence to global KYC and AML requirements.

This article was originally published in the December edition of Security Journal Americas. To read your FREE digital edition, click here.