Identity Verification Methods are fast becoming critical components in business as well as day to day life.
What Is the Meaning of Identity Verification?
Identity verification is vital for many companies today. Especially now that fraud is a growing concern. The term Identity is used to refer to certain traits and personal characteristics that define a person. While identity verification is the process of establishing a person’s identity.
Why Verify someone’s Identity?
In the ideal world, a person would identify themselves and for all intents and purposes, this would be fine. However, With ever more sophisticated banking, services and products, there are ever more sophisticated fraudsters – those who look to profit by working around the rules.
Identity Fraud is everywhere
Identity Fraud is one of the most prevalent of these methods; from simple scams such as posing as a customer to withdraw cash from a bank account to sophisticated, long-term schemes where false identities are used to create businesses and shell corporations which then invest in other businesses using kickbacks from fraudulent business deals.
There are a number of defences that businesses can employ against such attacks, but the best and simplest is Identity Verification.
Common Identity Verification Methods
Several techniques exist that can be used to verify a person’s identity. However, the best way to achieve accurate and reliable confirmation of identity is to use several different methods. At the very least, more than one method should be used.
Some of the top ways to verify identity that are currently being used are:
- Credit bureau based authentication,
- Database identification methods,
- Knowledge-based authentication,
- Online verification, and
- two-factor authentication.
Credit Bureau Based Authentication
Credit bureaus hold credit information, such as people’s full names, home addresses, and ID numbers, that can be used to verify people’s identities. This method works best for those who have well-established credit records. Without sufficient credit history, it may not be possible to use this method.
Database Identity Verification Methods
Another way to verify an ID is to use data from social media, as well as data from paper and digital databases. Although this approach is widely used to assess individual risk potential, in reality, there’s no way to know for sure whether the person submitting the information, and completing the transaction is in fact the same person.
This method verifies identities using security questions. The questions should be personally applicable to the individual, so as to prompt answers that only they should be able to provide. A time restriction may be added as an extra layer of protection. Unfortunately, personal information nowadays is often freely available on social media, jeopardising its credibility.
Individuals are generally asked to provide a photograph of themselves holding their ID document. This is done to verify a government-issued ID matches an individual using various tools, such as AI, manual checks, computer vision, and biometrics.
Two Factor Authentication
Along with login information, two-factor authentication techniques require the personal information to be submitted before account access is given. Two-factor authentication requests, also called tokens, are usually sent to an individual’s phone or email, necessitating the use of smartphones.
Solutions for Your Business
The Vision AI Suite provides business automation solutions using AI and RPA technology. Customer interactions, onboarding, identity verification and data extraction are just a few of the mundane tasks that can be automated using the Vision AI Suite.