As businesses go digital, traditional means of identity verification are no longer practical. Customers don’t have to come to the office of a company to get themselves verified, and for businesses, this poses a new challenge. Businesses are constantly struggling with regulatory and compliance needs, and KYC and AML regulations cannot be ignored. There are other businesses that specifically help with identity verification.
What exactly is identity verification?
True to the name, identity verification means identifying or matching the records of an individual with the documents furnished. For instance, if your business needs to complete KYC requirements, you will have to hire an identity verification service, that will take care of the process and confirm that the customer is exactly who they claim to be. The process is rather simple on paper – documents furnished by a customer are matched with data recorded in official databases.
Working with an identity verification service
There are varied means and methods used for identity verification these days.
- The first one is Knowledge-based authentication (KBA), where a customer is asked questions about his/her identity, and the person is expected to know the answers. The only downside is it is rather easy to find these answers, thanks to vast resources available online and on social media networks.
- The second option is called Two-Factor Authentication, where users are required to give a code or additional detail, to access their account. This form of authentication relies on smartphones, which can be called a disadvantage to some extent.
- The third option is to verify identity details seeking information from one or more credit bureaus. Mostly, many identity verification services rely on these credit bureaus to get details they need.
- In some cases, the Database ID method can be deployed, where various databases and existing resources can be used to verify the identity of a person. However, since there are numerous false online identities, this method requires precision and accuracy with regards to sources.
- Online verification relies on other means to verify identity, such as biometrics and artificial intelligence. In most cases, the customer will be asked to offer a picture of themselves holding their ID
Selecting an identity verification provider
Finding a known and reliable identity verification provider is critical for your business. You can ask questions related to their expertise, means and methods, and make sure that you look at long-term collaboration because this is one service that will be required for years to come.