Building the essential framework of trust online id verification service necessitates a person’s identity is confirmed, the legitimacy of the identification data they supply being checked, and the data, also known as personally identifiable information, being verified (PII). These are three separate sorts of checks and are not the same questions:
- Identity authentication
- Identity validation
- Identity verification
Because each contains distinct information and has various legal repercussions and obligations, the differences between the three might be confusing. Because the phrases are frequently used interchangeably yet have different meanings, it’s a good idea to define them. The number of identification checks a firm does is determined by its risk-mitigation plan and, if it’s a covered institution like a bank or money service business (MSB), the rules it must follow.
Identity Verification and Validation
Verification is the first step in the identity journey; is there a record of this person? Can it be feasible to link a person’s identifying information, such as name, address, and birth date, to a record about that person? This is frequently sufficient for regulatory compliance.
The Patriot Act, for example, states in the United States:
(2) Required Necessities
The legislation will, at a minimum, compel financial institutions to develop, and consumers to follow, acceptable measures for money laundering (after being given an appropriate warning).
(1) verifying the identification of anybody requesting an account, to the degree that is reasonable and possible;
(2) maintaining track of the data used to authenticate a person’s identification, such as name, location, and other personal data;
The information is checked and verified utilizing identity validation. While the identification information may match a record, a record with erroneous or fraudulent data might appear authentic without validation. As an example, verifying that a social security number has been granted and that the individual is still alive. Additional identifying information or processes may be required depending on the kind of account, the projected volume, and the number of transactions.
Authentication of identity
Identity verification providers check to see if the individual is who they claim to be. Authentication is based on extra data that is impossible to get unless that individual is there.
Authentication broadens the breadth of identification information required to establish a positive match by adding a layer of identity information. Authentication decreases the danger of fraud and establishes a degree of confidence that allows you to do business with that verified person safely.
Another method of authentication is biometrics. Biometric technology uses the diversity of human traits such as fingerprints, retinal, face, or vocal to provide identifiable details about something you are. Knowledge-Based Authentication (KBA) employs questions that (allegedly) only that person knows.
In principle, biometrics provides a better level of security than KBA. Because KBA data is gathered on databases to verify a person’s match, it is vulnerable to hacking. To get around security, criminals have figured out ways to steal fingerprints, deceive facial recognition and record speech. Biometrics technology isn’t flawless and might have security flaws and concerns.
These security concerns would be justified if one biometric was the only source of identifying data. When combined with several additional data points, it becomes a component of the total security system rather than a single point of failure.
Document Verification
Consider document verification, which leverages the presence of an identification document to establish authenticity. There are several risks associated with depending on a single data source. Electronically analyzed photos of driver’s licenses, passports, and other major ID papers are used to assess authenticity and validity. To close this gap, a live photo is compared to the one on file for verification. Combining many data points and channels creates a way for triangulating genuine identification.
Authentication for AML/KYC
Many nations do not yet recognize alternative techniques for Anti-Money Laundering (AML) Know Your Customer (KYC) compliance checks due to legal concerns. To accomplish so, legal reforms will be required, as well as the development of the requisite safety and security measures.
While there are certain implementation concerns, such as security, privacy, and data control, the simplicity of using an added layer of security leads to a future when more regulators will accept biometrics as part of the identity process.
Identity checks that integrate trusted identity verification with validation and effective authentication are trustworthy, safe, and reinforce the trust connection between parties. Fraudsters are held at bay, strong connections are created, and a future of seamless identity authentication trust becomes a reality, thanks to the interweaving of several data sources, kinds, and channels.
Brief overview:
Can you identify if someone is exactly what they say they are? The demand for verified and trusted identities is growing as the internet world advances. While a fake identity may have started as a harmless occurrence in online verification service forums, it may today result in significant financial loss or be at the heart of financial crimes.