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Identity Verification

Identity verification is the process of validating whether the identity of a person is …

Identity Verification knowledge base

Identity verification is the process of validating whether the identity of a person is the same as they present it. Identity verification is conducted through multiple means such as document verification, biometric authentication, and in-person interview. In the digital space, identity corresponds to a set of attributes that are specific to an individual which make a connection with their physical characteristics. Identity verification is essential when it comes to associating ties with customers, offline or online.

Why is Identity Verification Important?

Identity theft is a growing concern for businesses and individuals alike. Stolen user credentials are used by fraudsters to carry out a series of cybercrime like account takeovers, impersonation fraud, and medical ID theft. Identity verification determines whether a person behind the system is a genuine customer or a potential threat. This prevents criminals from using false and synthetic identities for their benefit. It not only helps prevent fraud but helps businesses comply with KYC and AML regulations.

Online Identity Verification

Online identity verification is performed through advanced technologies like Artificial Intelligence. It empowers businesses to verify remote individuals through their documents and biometric authentication. The user shows his ID card and face to the camera, and the AI-based identity verification solution verifies his identity in real-time. Digital identity verification solutions not only verify the information present on the identity document but authenticates its originality through enhanced checks. Then the face shown on camera is matched with the face on the identity document to ensure that there are no false positives.

Difference Between Traditional and Digital Identity Verification

Manual verification procedures where face-to-face interaction is necessary, do not meet modern customer standards. The cost and effort of investing in the manual onboarding of customers take a lot of time. Manual verification checks require the physical presence of the end-user, and the documents are checked only by human experts which makes it more prone to error.

On the other hand, online identity verification makes it easy by providing a technology where a user can be verified remotely through identity documents and biometric authentication. Now, users can verify their identity over the internet at the comfort of their homes, and in real-time.

Where can Identity Verification Help?

Identity verification is a quick means of ensuring Know Your Customer (KYC) standards which are an essential part of businesses operations. Some industries and domains are listed below where online identity verification can ensure KYC compliance:

  • Healthcare Industry: Pharmaceuticals, clinics, hospitals, medical facility centers, POM sellers, healthcare and in-home care service providers
  • Fintech Sector: Digital payment services, online mortgage/loan providers, cryptocurrency solutions, companies providing financial technology solutions.
  • Financial Industry: Insurance firms, banking entities, brokerage and mortgage houses, investment planners, mutual funds companies, and (Non-banking Financial Entities) NBFCs.
  • E-commerce stores: Online shopping platforms, B2B and B2G organizations
  • Gaming Platforms: eSports websites, age-exclusive services like R-rated games
  • Travel Industry: Hotels, airline companies, destination planners, and tourist agencies
  • Legal Sector
  • Real Estate Businesses
  • Sharing economy: Car rentals, P2P platforms.

Identity Verification Walkthrough

Different means of identity verification are used to identify users in the digital space. A standard digital identity verification procedure is carried out in the following steps:

  • In the initial step, the user registers on the online platform with their name and date of birth
  • The system requires the user to submit the identity proof for verification. This could be any government-issued ID card, passport, driving license, or an authentic document providing identity information.
  • The identity verification system extracts and analyses essential data including name, date of birth, address, and nationality, etc.
  • The user also submits a photo of their face so that the system can compare it with the document photo and complete the process.
  • The identity verification process concludes with sharing of results with the end-user.

AI-powered Identity Verification

Today, service providers of identity verification use artificial intelligence to make the process reliable and accurate. Documents used to verify the identity of users are put through authenticity checks which look for missing holograms, tampering, and photoshopped information. Moreover, the facial identity verification of users incorporates a detailed analysis of micro-expressions, facial features, skin tone and color to take down potential identity theft.  

Benefits of Identity Verification

Fraud Prevention
Identity verification can check whether the real-world identities of users are similar to their digital identity to keep fraudsters at bay.

Customer Onboarding
Online identity verification helps businesses onboard reliable entities remotely to grow their business beyond territories.

KYC/AML Compliance
It helps meet global KYC/AML compliance requirements while fulfilling the data protection compliance obligations.

Monitor your customers AML risk profile in real-time and stay ahead of the regulatory compliance requirements.