Identity verification is a necessary procedure that verifies an individual is who they claim to be when establishing a bank account, asking for a loan, or engaging in other financial transactions. While identity verification is critical in preventing new account fraud, it also plays a role in financial institutions’ Know Your Customer and anti-money laundering activities.Digital identity verification extends the idea of identity verification to the distant world of today. With data breaches, account takeover assaults, and identity theft on the rise, as well as increasing demand for remote procedures as a result of the COVID-19 epidemic, companies must identify identity fraud and verify whether someone online is who they claim to be. Moreover, companies, governments, and financial institutions may use digital identity verification techniques such as biometric verification, facial recognition, and digital ID document verification to validate a person’s identification online.
When the individual and their identification document are not physically present, digital identity verification may be utilized. Additionally, digital identification verification may be used to expedite ID verification, such as the usage of e-gates at airports to scan passports. Verifying your digital identity is a critical step in the account opening and customer onboarding processes. Financial organizations may conduct checks on an applicant’s identification to ensure that the applicant is not a fraudster, criminal, or trying a scam.
Furthermore, mobile identity verification enables a person to establish their identification via their mobile device. You may use your mobile device to compare anything about yourself, such as a facial recognition biometric, to the picture on a government-issued identification document, such as a passport, driver’s license, or national identity card. Thus, it ensures that a genuine person is behind a process and verifies that the person is who they claim to be, prohibiting both unauthorized process execution and the creation of fake identities or fraud.
To learn more about biometric technology, the following infographic from LOGIN ID provides a brief history:
