For this, just the way banks and other financial institutions do, ID Verification Services should be done by complying with Know Your Customer (KYC) and Anti-money Laundering (AML) regulatory obligations.
Effective KYC/AML solutions provide businesses securely and user-friendly onboarding experience and ID verification can be ensured. Digital users abandon the processes that seem cumbersome or involve complicated processes. Customers want instant processing and robust systems, however, security should be balanced by businesses simultaneously.
Online id verification can be performed in real-time by identifying the identity against government-issued identity documents. Id verification API is available today that businesses can integrate with their systems to verify each onboarding identity in seconds and keeping both security and customer experience intact.
Use Cases of Id Verification Systems
In the online customer lifecycle, there are different stages in which identity verification is crucially important. The very first time, identity verification needs to be performed at the time of customer registration/onboarding. At the time, the account is created, the customer due diligence process should be performed to avoid bad actors from performing malevolent activities such as money laundering, terrorist financing, cybercrime, credit card fraud or other payment scams.
Moreover, identity verification should also be perfumed when the online user resets the passwords or changes other credentials. This is important to ensure that real identity is making changes to online accounts and there is no unauthorized access over confidential accounts.
Such actions in account management are vulnerable to cyberattacks, credential stuffing, account takeover or identity theft cases. Therefore it is important to verify identity each time it changes the account credentials.
Types of Identity Verification
The following are different types of identity verification that can be used to verify the identity of an individual using different technological advancements.
Electronic Identity Verification (eIDV)
Remote identity verification in which technologies are used to identify and verify the identity of an online user. This can be done by electronically scanning the uploaded identity document of the user, check spoofing elements if they exist, and other document authenticity checks to make sure no fraudulent entity has uploaded a fake document. From the document, identity information is extracted such as name, address, date of birth, etc.
The document originality is checked against various spoofing elements checklist to ensure that user-uploaded document does not tamper, photoshopped and does not contain any forge elements. The identity document verification includes documents such as ID card, driving license, passport and credit/debit card.
Knowledge-Based Authentication (KBA)
By using the original information of an individual, user-provided information is verified. To ensure that information is private. Question-based on information is asked or dynamic KBA is used.
The advent of the smartphone and its users make it possible to conduct online identity verification using smartphones. Just like eIDV methods of biometric verification, mobile id verification collects information of an individual is collected using a mobile phone. Mobile ID depends on information from MNOs (Mobile Network Operators) which includes, name, mobile phone number, geolocation, billing, address, etc. this data provides valuable identity intelligence layer for the purpose of identity verification.
Online businesses can protect operations and platforms by ensuring authorized access over user accounts. Id verification API can be integrated with the system that seamlessly identity and verifies the information provided by the user.
This can be done by using document verification and other identity proofing techniques as most of the businesses around the world are adopting biometrics authentication methods especially online payment services providers.
To ensure secure online payments, and identity would first need to authenticate the registered facial features if the same, innovative facial biometrics software is used to verify the registered facial features against the ones captured in real-time.