Identity verification is critical when conducting important transactions, applying for work, or making agreements. Applications like banking, online application registration, and administration require identity verification. As age verification expert Yoti illustrates, identity verification refers to establishing a person’s identity by ensuring that it matches the credentials they possess or provide during a transaction. In simpler terms, identity verification ensures that a person is who they claim to be.
Nowadays, identity theft and manipulation cases have increased thanks to the internet and social media. A person can easily take on another person’s identity, primarily for illegal reasons. For these reasons, identity verification is integral. The good thing is that identity verification can be done online nowadays.
What is online identity verification?
Also known as digital identity verification, this is an authentication that is entirely done online. This doesn’t seem very clear to many people because of the belief that the internet only makes it easy for people to create and live by false identities. The conventional way for conducting identity verification is face-to-face verification. In this process, the parties involved are asked to present themselves in an organization and provide identity documents so official agents can verify them.
While some organizations still use face-to-face identity verification, many institutions have adopted digital processes. The method or process may differ depending on the tool or medium for carrying it out.
How is identity verification done online?
The online identification methods differ depending on the provider. Nowadays, many online platforms offer identity verification services. However, not all these platforms are the same or safe. Below are some online identification methods:
Image/selfie identification
This is the simplest and easiest method to apply. However, it does not conform to the security standards of personal identification verification, as all you need to do is click an image or selfie. Therefore, it is a suitable method for low-risk operations.
Streaming video
This is a slightly advanced identity verification model. Additionally, it is more secure and satisfies legal remote identification requirements. This method used tools like artificial intelligence, machine learning, and various algorithms to verify identities. Additionally, it depends on image recording devices like computers and smartphones with internet connectivity for identity verification.
Streaming video online identity verification includes the following steps:
- Choose a relevant service provider from the numerous options on the market
- Grant the website permission to use your camera and microphone for identity verification
- Provide your identification documents for the AI application to scan and verify
- Allow the tool to scan and verify your face
- Wait for the verification results
- Once the verification is complete, you can register with the organization. For instance, if you aim to become a bank member, you can register to become one once the identity verification is complete.
Areas/Applications when digital identity verification is mandatory?
Identity verification helps ensure that users’ identities are authentic. This process is mandatory in the following areas:
- Banking and finance- institutions in this sector require that people go through identity verification before opening a bank account. Users must also complete an identity verification before conducting financial procedures, like online sales and purchases.
- Insurance and telecommunication- these industries require identity verification before people can procure products and services or conduct online operations.
- Technology manufacturing- identity verification is mandatory for product and service procurement in this industry.
- Online apps- individuals must also complete an identity verification process before logging into or registering to an online application or website. Additionally, some websites and mobile applications require users to complete a two-factor authentication before logging in.
- Administration- identity verification is an integral step before issuing or renewing electronic certificates, IDs, and documents for administration purposes, like medical applications.
Standards and regulations for online identity verification
The standards and regulations set for the use of online identity verification tools are known as AMLs and eIDAs. The (AML5) fifth anti-money laundering directive provides standards that help institutions fight fraud, terrorist financing, identity theft/ forgery, and money laundering. In contrast, the (eIDAS) electronic identification, authentication, and trust services regulate everything related to electronic signatures, digital transactions, and trust services.
How is Identity Verification Done Online?
The online identity verification process is relatively simple. However, the process differs depending on the online tool you use. Not all tools meet the legal standards and regulations for online identity verification. So, it would be wise to keep this in mind before using the tools.
