Best ways for Identity verification you should know!!! Did you know that in 2019, there were 14.4 million people who became the victim of identity fraud?
Identity fraud is creating a more dangerous situation that is worsening day by day. Federal Trade Commission (FTC) maintains a Consumer Sentinel Network that tracks consumer fraud and identity theft complaints which are registered in federal, state, or any local enforcement agency, or even in private organizations. The report published by this organization is shocking. You can get a sneak peek of the report here. This highlights the danger of not having a proper identity verification system for your company. So here is an article describing what precisely identity verification is and its types.
Why is Identity verification even important?
We all know that Identity verification now serves a huge role in transactions going over in financial institutions, e-commerce companies, social media, and probably every other important sector. Identity verification allows companies (especially tech-giants) to comply with Anti-Money Laundering and KYC (Know Your Customer) norms. Know Your Customer norms are different in different countries, but one thing is shared between all of them, i.e., Identity Verification.
Identity verification is generally divided into these five categories:
- Knowledge-based authentication
- Two-factor authentication
- Credit bureau-based authentication
- Verification by an online process
- Verification by Biometrics
This method requires the user to answer a simple question to verify their presence. It is one of the easiest ways for identity verification and requires minimum tech support. But in this growing world of social media, this method is somehow failing again and again. These questions can come with an added layer of security as with every question, a limited number of minutes can make it more difficult. And not just the number of minutes but the restricted number of attempts can also add to its layer of security.
Verification by Online Process
This process is one of the best methods to verify the person online. It includes verifying the person by the use of AI and manual checking. Typically, the users have to upload their latest clicked photograph with his/her government-issued id. The AI will run a series of technical checks to match the face of both the photographs and detect any fraud or inconsistencies. Typically, each check is double-checked by an in-house team of identity experts, which acts as an added extra layer of security. If you want, there is a detailed explanation about the technology, learn more.
This is the most convenient method to verify your identity online. This method requires the use of your fingerprint, retina scan, facial recognition, etc. This is the most preferred way to verify your identity as it does not requires putting a strain on your brain to remember the password. But as every coin has two sides, this method has a downside too. The risk of your biometric database getting hacked is always a big concern. Moreover, your biometric can be easily stolen. For example, your fingerprint from a cup of coffee, your photographs from your social media handles, etc., poses a significant threat to this type of verification.
Credit- Bureau based Authentication
This method is solely based on a database from a credit-bureau agency. Big companies specialized in this sector have a lot of credit information for their users. This information includes their name, address, social security number, and many more types of information. This type of verification might not suit the identification of young children or any of the recent immigrants.
This method of verifying identity is most widely used nowadays, and chances are you have already experienced it. This method is most commonly used to rest your passwords on any website. This method requires an additional token to be filled apart from username/email and password.
Which is the best?
Well, for every situation, a different type of verification process is required, and no single process is suitable for all. But if we have to choose one that can be somewhat close to being called the jack of all trades, it would be the method based on the online process. It is the best method as considered by some researchers of this field as it employs the use of AI and humans together. You can always refer to www.idenfy.com to read more about this process.
Identity verification is a crucial step to make your id theft insurance company security unbreakable. It creates a sense of trust in your customer’s mind and creates a positive image of your company in the market. Therefore, you should always opt for an identity verification system, and that too, according to your needs. Remember, Precaution is always better than cure.
Hope to utilize identity verification for your systems; till then
Stay Safe and Keep Smiling!!!