The RegTech Hub
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The RegTech Hub

ID check essentials — identity program considerations

Performing an ID check has been a standard operating procedure for years for many businesses. Now, almost any company that operates digitally can use an ID check to help prevent fraud, ensure compliance and build trust and safety into their services.

While the term might seem obvious, various nuances, processes and even legal definitions require consideration. It comes down to what you want the ID check to accomplish; different use cases will help determine how you approach the topic.

Here are some definitions:

Identity verification
An ID check to see if the identity does exist. For example, if a customer provides a name, address and date of birth, does a record of that identity exist in reliable databases? An identity verification might check the provided profile information against local credit agencies, government sources or utility records to determine if there’s a match.

ID document verification
An ID check to see if a provided identity document is genuine and not a forgery. For example, a customer takes a picture of their driver’s license or passport, and the document image is checked against templates and evaluated for signs of tampering or fabrication.

Identity authentication
A check to determine if the person is who they say they are. For example, a person might provide information that matches records or provide an ID document that is real, but is the applicant the same person as that data or document suggests? An authentication checks for factors such as:

  • Something the customer knows (knowledge, such as a password)
  • Something the customer has (possession, such as a card or phone)
  • Something the customer is (inherence, such as biometrics)

An ID check might include one or more identity or authentication steps. Additionally, each step can vary in the amount and type of information checked. An identity verification might entail checking three data points with records from three data providers. Or, perhaps multiple layers of authentication are needed for a particular use case.

Determining your identity program requirements

What is the best way to determine how you should perform ID checks? On the one hand, you want to ensure your analysis is accurate, complies with all legal requirements and protects your organization from problematic accounts. But you also don’t want to inconvenience your customers with a slow and convoluted sign-up process.

A good ID check program is about balance, properly aligning speed and security to meet your needs. It’s taking a risk-based approach, understanding the specific risk scenario and taking measures to control that.

Every use case, country, company and customer are different, so a one size fits all solution might be way too strict or not strict enough. Some factors to consider include:

  • What’s your industry?
  • What country are you in?
  • What countries are your customers in?
  • What types of products and services do you offer?
  • What types of transactions are involved?
  • What is the volume of transactions?
  • What is the value of transactions?

Some industries are at more risk of money laundering and other financial crimes and have Know Your Customer (KYC) legal requirements. KYC regulations and other risks will vary from country to country, even within a country.

There are no legal KYC requirements for other industries, but companies will perform ID checks to decrease risks. Some risk profile factors might stay static, but others can change dramatically and ongoing attention is crucial. Consider a customer that starts with a few low-value transactions and suddenly starts to transact massive amounts; without measures that can detect changes in risk and take active steps to prevent issues, significant losses can occur.

A holistic solution

For Trulioo, making sure you have the ability to adapt ID checks to fit your needs is what matters.

Trulioo operates globally, so we have you covered no matter what countries you do business in or plan to. It’s not simply coverage; our understanding of the market and what works in each country will give you the best identity match rates to drive your business growth.

We have multiple solutions — Identity Verification, ID Document Verification, AML Watchlist Screening and numerous authentication techniques that can work together to optimize speed, security and risk prevention.

Our data scientists, AI experts and programmers continually gather, analyze and interpret massive data sets to detect patterns and optimize results. The most extensive data sets combined with industry-leading identity intelligence technology enable more identity matches on the first pass. The results are quicker customer onboarding experiences and fewer slow, costly manual checks for businesses.

Using Trulioo GlobalGateway, you get the same expertise and technology as global banks, Fortune 500 companies and the biggest names in marketplaces, crypto and other leading-edge vendors. No matter what your identity program requirements are, GlobalGateway has the global reach and flexibility to deliver a holistic solution.

For digital businesses, the initial onboarding is often the first touch the customer has with you. That ID check is often a make-or-break moment; with GlobalGateway, you’ll deliver an experience that meets your customer’s expectations and fulfills your business needs.

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