04/19/2024 | News release | Distributed by Public on 04/19/2024 07:01
In today's digital-first world, our most vital information exists online and in the cloud - making it more difficult than ever to keep it protected. Companies holding that sensitive information have a responsibility to keep it secure and ensure only authorized users are able to access accounts and databases.
In the past, companies have relied on physical identity checks for authorizations, like presenting a photo ID for important bank transactions or when traveling. But today when fewer and fewer transactions are happening face-to-face, companies need to find ways to securely and reliably digitize the ID verification process.
Digitizing this process has become an incredibly important aspect of anti-money laundering (AML) and Know Your Customer (KYC) compliance. Companies that deal in digital transactions or information-sharing must comply with both AML and KYC regulations.
The process of digital ID verification reduces instances of financial crimes, identity fraud and even human trafficking - and helps with AML efforts by providing effective and simple identity proofing starting with the onboarding process.
A digital identity is an electronic collection of identity-verifying information and documents, including:
Financial services companies may require a combination of the above-listed ID information to verify your identity and ensure you are who you say you are, similar to how face-to-face authorization has been done in the past. The biggest difference is that now financial institutions are relying on digital measures as part of their AML and KYC efforts.
The digital identity verification process compares user-supplied identity documents and biometrics with official documentation that a government agency provides. For example, a user may submit a selfie to verify their identity, and the digital identity verification process will compare it with an official ID document, like a passport.
Common methods of digital identity verification include:
Digital identity verification can benefit both the user and the organization. Here's how:
Manual identification is complicated and prone to errors. People often make mistakes, which can lead to fraudsters or imposters slipping through the cracks. Digital identity verification double- and triple-checks a user's identity, providing peace of mind that customers are legitimate.
Advancements in the technology used by identity verification services, such as machine learning and AI, can greatly improve accuracy and ensure a better experience for end users.
A system of identity verification tools streamlines workflow automation and eliminates bottlenecks caused by overwhelmed or busy employees. Rather than waiting to verify identities manually when it fits in your team's schedule, the process is automatic.
This enables team members to focus on more complex and fulfilling tasks and minimizes approval time for new accounts and users.
Digital identity verification keeps accounts more secure and enables faster access to user accounts. Users can establish their identity from the comfort of their own home and on their own time, making the entire process easier and less time consuming.
Users are more likely to trust the organization, helping to build confidence and maintain long-term customer relationships.
A digital identity verification process is most beneficial in industries that are at high risk of fraud, including:
These organizations often use a variety of identity verification techniques including government ID verification, selfie verification with liveness detection, address verification through supplemental document verification, face matching and/or one-time passwords for ongoing authentication, and more.
As fraudsters develop more innovative ways to commit identity theft, digital identity verification is stepping in to allow consumers and organizations to fight back.
This approach provides a streamlined process to enable KYC and simplify ID authentication in order to provide the best user experience. To learn more about how Jumio can help with ID verification, from onboarding to ongoing authentication, contact us today.