Data breaches have increased in severity and frequency in recent years, resulting in a rise in identity theft cases. With so many scams going on, it’s important to make sure people are who they say they are to reduce risk.
In this post, we’ll discuss what identity verification is, why it is important, and how to verify securely.
Identity verification – what is it?
Identity verification refers to the process during which an organization confirms a user’s identity. Normally, identity checks are done through offline or online channels. But with the advancement in technology, most corporations and businesses prefer online or digital identity verification.
Digital identity involves verifying someone’s identity using technology. That cross-references their personal data and traits with records stored in digital infrastructure, instead of an individual seeking these up manually.
It includes basic details like their addresses, biometric data, social security numbers, phone numbers, or passport photos. But it might include personal security details, which they have offered themselves.
Even though ID verification is an essential security measure in combating fraud, it also plays a role in AML (anti-money laundering) and KYC (Know Your Customer) efforts at financial institutions that monitor and assess client risk.
Why is identity verification important?
Your identity is a key part of personal security linked to your bank account, your place of work, and all the ventures you take part in.
That means that if anyone fraudulently uses someone’s identity, they can quickly do lots of damage. So, if you fail to verify anyone’s identity that leaves your company, its employees, and its clients at risk.
Here are some of the benefits of the identity verification process:
- Eliminated risk of financial crimes (like terrorist financing, and money laundering), identity fraud, and cybercrimes.
- Increased user experience and trust between service providers and users.
- Guarantees federal compliance. Lack of compliance can lead to severe penalties, including criminal liability and fines.
- Maintains and improves one’s reputation.
How is identity verification performed online?
There are a number of procedures through which institutions carry out ID verification. The procedures are divided into offline and online ID verification services. Here, we’ll focus on identity online channels.
The main purpose of online identity verification is to ensure that the individual behind an interaction or account is who they claim to be. To this, most organizations combine the below identity verification solutions.
- Biometrics
Biometrics is one of the identity verification methods that depend on individual physical traits, which are hard to fake to authenticate a person. For instance, a retina scan, a voiceprint, or fingerprints are all biometric techniques. Today, these biometric techniques are also included in smartphones. Combined with liveness detection testing, the biometrics can ensure with impressive levels of certainty that the real person is at the point of access.
- Identity proofing
Identity proofing is another important part of your security infrastructure. It includes methods of determining “claimed identity” vs. “actual identity” as hackers can obtain basic account details and then claim to be the real account user.
The practice of identity proofing needs users to offer forms of identity (usually official documents, in-person interaction with an agent, and photographic identification) that are used to onboard that client.
- OTPS or tokens
One-time passwords and tokens verify the presence of an individual by assuming that only they have the access to an email account or device.
- Identity document verification
Some identity authentication platforms allow users to scan or present identity documents(such as a driver’s license or passport) and then check it against their database. An advanced tool like facial recognition can make the platforms as accurate as human verification agents.
- Knowledge-Based Authentication (KBA)
The user is asked to answer specific questions to offer accurate authorization for digital activities.
Identity Verification
When it comes to your company’s security, identity verification is a must. That ensures the safety of your client’s, staff, and company’s data.
To more data you collect, the higher the verification accuracy. Luckily, today, there are several more sources of identity details. For instance, social media information, geolocation, facial comparison, and mobile data can all offer extra parameters to match against.
