According to a report by Javelin Strategy & Research, identity theft victims lost $52 billion in 2022. To combat this issue, businesses need to have secure verification processes in place.
These measures include verification of ID, authentication of ID, and liveness checks. This article will discuss all of these methods of verifying identities and how they differ from one another.
Verification of ID
Digital identity verification is a critical process that ensures people are who they claim to be and that the information they provide is accurate. It helps businesses protect themselves from fraud and meet regulatory requirements like KYC, AML, and eIDAS. It also helps them provide a better experience for their customers and users.
There are several types of digital identity verification services. Some require that signers upload a photo ID, such as a passport or driver’s license. These services can verify the authenticity of an image by performing liveness detection or scanning for magnetic ink, machine-readable zone, and barcodes. Others use biometrics to verify a person’s identity, such as face recognition and voice analysis. These methods can confirm that the person is who they say they are and that they are in control of their account.
Other digital identity verification services compare user information with a verified data set, such as government-held records or commercial databases. This method is especially useful for banks, which need to comply with anti-money laundering and know-your-customer regulations. These types of systems help reduce the risk of fraud without compromising customer experience or adding unnecessary friction to the transaction. They can verify a customer’s identity in just a few seconds and help prevent fraudulent activity by preventing criminals from accessing sensitive data, money laundering, and terrorism financing.
Authentication of ID
Most people understand that they will need to provide their ID information in order to access a service or sign a contract. However, many consumers are surprised when they find out that they will also need to verify their identity online. The reason for this is that online companies are required to comply with Anti-Money Laundering and Know Your Customer (KYC) regulations.
There are several different methods of ID verification, including document verification, database verification, and facial comparison. These techniques help businesses establish that the person who is using their services is the person they claim to be. This helps to prevent fraud and other types of crime related to stolen or fake personal information.
One of the most popular ways to verify a person’s identity is through document verification. This involves comparing the data on an identification document against authoritative databases to ensure that the person is who they say they are. This type of verification can be done by a human or by machine, and it is essential for businesses to perform this check before allowing someone to use their services.
Authentication is often seen as a separate step in the verification process, but it is actually an integral part of the identity verification process. In the past, authentication was achieved by requiring a password or other form of secret knowledge that only the real person could know. The rise of cybercrime and data breaches, however, has made it increasingly difficult for organizations to keep their customers’ information safe.
Verification of PII
Personal identifying information (PII) refers to any data that can identify an individual. It can be gathered in many ways, from paper forms, face-to-face interactions, phone calls and online activities like email or social media. It can also be collected from surveillance cameras.
Organizations need to verify PII for several reasons. For example, they can use it to comply with regulatory requirements such as anti-money laundering (AML) and know your customer (KYC). They may also need it to protect people from identity theft and fraud. They can also use it to improve their services and products, as well as ensure compliance with laws such as the California Consumer Privacy Act.
PII is classified as sensitive or nonsensitive depending on the harm it could cause individuals in case of a breach. Nonsensitive PII can be easily gathered from public sources, such as phone books or corporate directories, while sensitive PII requires higher levels of security protection. For example, a person’s full name and birthday can be considered non-sensitive, but a list of people who visited a doctor would be considered sensitive PII.
Organizations should take the following steps to secure PII:
Verification of Social Security Number
A Social Security number is a unique nine-digit code that is assigned to all individuals in the United States. It is used by financial institutions, government agencies, motor vehicle registration and licensing entities, welfare agencies and other governmental and private organizations to identify an individual. The Social Security Act established the number as an identifier and verification tool for all citizens of the United States. However, the number is frequently used by those who commit fraud and identity theft to make fraudulent transactions. These include opening bank accounts, obtaining credit cards and loans, and establishing fake identities for money laundering and tax evasion. SSN validation is a valuable tool to combat these activities.
Unlike E-Verify, which may only be used to verify employment eligibility within three days of an employee’s hire, SSNVS can be used at any time by employers or third parties. Employers can verify up to ten names and SSNs at a time using the service. Third-party submitters can upload up to 250,000 SSNs for verification purposes.
SSNVS is useful for verifying the identity of a person, but it does not confirm whether that person has valid authorization to work in the United States. In addition, it does not tell the employer whether the worker is a citizen or alien. It is important to be aware of these limitations before using SSNVS.