What is Identity Verification?
Identity verification, also referred to as identity proofing, is a crucial process employed by organizations to confirm the authenticity of an individual's claimed identity. It is a fundamental aspect of cybersecurity and risk management, aiming to prevent unauthorized access, fraud, and identity theft. Identity verification plays a key role in KYC (know your customer) and KYE (know your employee) processes. Identity verification can be performed in person or digitally.
Steps of Identity Verification
The verification of identity involves confirming that the information supplied by an individual is genuine, legitimate, and rightfully theirs. Essentially the process involves the following steps:
- Collection of Information: Gathering relevant data such as personal details, documents, or biometric information, depending on the verification method employed.
- Verification Process: Confirming the accuracy and legitimacy of the provided information.
- Decision and Reporting: Determining the verification outcome and generating reports for further analysis or regulatory compliance.
Identity Verification Methods
There are many different methods of identity verification and identity verification solutions usually employ multiple methods in order to increase the security of their processes. These methods include:
- Document Verification: Determining the authenticity of a passport, ID card, driver’s license or other official document.
- Location Detection: Checking if the person is in the geolocation you expect them to be.
- Facial Recognition: Comparing a selfie with the image from the verified ID to make sure the individual matches the claimed identity. This usually includes liveness detection to make sure they are genuinely present.
- Live Video Verification: Conducting a face-to-face video in order to confirm liveness and detect signs of spoofing or coercion.
- Chat Verification: Engaging in a chat verification may be used in lower risk scenarios or in tandem with other identity verification methods.
Identity Verification vs. Identity Authentication - What Is the Difference?
Identity Verification is the validation process of confirming that a person is who they claim to be. It is typically done at the early stage of onboarding a new employee or customer or during times of elevated risk. During verification, the company or organization requests proof of personal data, such as government-issued ID and phone number.
Identity Authentication is the continued validation of an already verified identity to make sure that the person accessing the account holds the authorized credentials. Authentication is typically done whenever someone accesses an organization’s systems.
Why Do Organizations Need an Identity Verification Solution?
Fraud Prevention
Protects organizations from unauthorized access, financial fraud, and identity theft by ensuring that individuals are who they claim to be.
Compliance Requirements
Meets regulatory standards and legal obligations by implementing robust identity verification processes, especially in industries like finance, healthcare and e-commerce.
Better User Experience
The right identity verification solution can automate manual processes and make the verification faster and easier for both the administrator and the employee or customer.
Risk Management
Helps organizations assess and manage the risk associated with different transactions and interactions, allowing for more informed decision-making.
Crisis Response
Provides a critical layer of defense during crises, such as data breaches or security incidents, helping organizations quickly identify and address potential threats.
The Future of Identity Verificaiton
Identity verification technologies are evolving rapidly, incorporating features such as AI. While there are many good customer identity verification solutions on the market, HYPR Affirm is the only comprehensive identity verification solution designed to meet the unique needs of workforce identity verification.
Example:
A prospective employee has a remote job interview. The hiring company uses an identity verification solution with liveness detection technology to check for spoofing or fraud and, if hired, to make sure that the identity of the new employee matches the person that was interviewed.
