What is Identity Verification
Identity is determined through a set of characteristics or traits unique to a specific person. It involves the external natural features of a person, such as height and skin color. Identity becomes essential when talking about people, especially in the online environment where incidences of fraud and identity theft are widespread. It helps to distinguish one person from another using their visible features and also shows the correspondence of one item to another.
Identity verification is a process that compares the identity of a person with their previous existing data to ensure they are whom they claim to be. It has existed for many centuries and evolved through time.
Identity verification helps companies to examine a client’s nature and attributes before making any crucial decisions or dealings.
Methods of Identity Verification
There are many methods and processes of verifying a person’s identity driven by KYC and AML rules and regulations established worldwide.
Traditionally, individuals would present themselves with the required identification documents to a company or organization. An agent present in the company only needed to compare the image on the identity card with the person’s face in front of them to verify their identity.
However, the ongoing global pandemic has forced businesses to go online and adopt new methods of identifying the identity of their clients. The methods implemented include two-factor authentication, online verification, knowledge-based authentication, biometric verification, databases, and credit bureau-based authentication.
Where is Identity Verification Applied?
Identity verification is required in instances where finances are involved, such as when opening a bank account, making online purchases or sales, and before making any financial transactions. Verification is also required when logging into some applications and social media platforms to avoid identity theft.
Hotel check-ins, user registration, and access to some facilities and buildings incorporate identity verification systems. Issuance or renewal of government documents such as electronic certificates, ID documents, and medical records also requires verification.
Importance of Identity Verification
There has been a rise in the number of cases of data breaches amounting to fraud and identity theft worldwide in recent years. It has prompted businesses and individuals to find ways of verifying their clients’ identities to curb the malice. Many companies are investing in artificial intelligence more than ever.
Identity verification systems help in providing a secure network for companies, which in turn builds their reputation and attracts clients. They also help to avoid costly fines and cashbacks that are associated with poor financial management and weak security measures.