Three use cases for identity verification
Identity verification has three primary use cases: achieving compliance requirements, reducing fraud and building trust and safety. Depending on your business and where you operate, you might prioritize a particular use case. Fortunately, effective identity verification processes for one use case can be helpful for other use cases as well, the proverbial two birds with one stone.
The video above examines the different business cases for identity verification. It’s part of our video series, Buyer’s Guide Series to Digital Identity Verification Solutions, to help you navigate the identity verification landscape.
Identity verification solutions help you achieve compliance.
Compliance requirements ensure businesses have processes to protect against financial crime, like money laundering or terrorist financing. And in many instances, ensuring compliance means verifying your customers.
Digital identity verification confirms that the identity information used to create each account connects to an actual person — not a fake identity. The information can then be checked against reliable and trusted data sources to let your business know who your customers really are, helping you meet compliance requirements and avoid regulatory fines.
Identity verification solutions help prevent fraud.
Once you’ve verified the user information provided connects to a real identity, you need to verify that the customer is who they say they are.
There are quite a few authentication methods used to do this — and new approaches are coming online all the time — but some you may have experienced include:
- Verifying uploaded ID documents, like a driver’s license or birth certificate
- Multi-factor authentication through one-time passwords
- Biometric authentication, like thumbprint, retina or facial recognition
Verification and authentication solutions help prevent fraud by flagging potential fraudsters before any damage is done.
Out-of-date information or mismatches in data can quickly reveal issues that require closer examination. By cross-referencing hundreds of data points, sources and fraud signals, you create a higher barrier for a fraudster to overcome.
And depending on your risk mitigation strategy, you can help prevent fraud even further by using a layered approach to identity verification. For example, requiring proof of possession of a mobile device associated with an account holder makes it harder for the fraudster to take over an account.
Identity verification helps you build trust and safety online.
The ability for digital identity verification to deliver safety, security and trust is a critical component of the new world economy — and it’s changing how we do business and interact with one another — both online and offline.
We can trust strangers on various marketplaces or person-to-person services thanks to digital identity verification. Marketplaces and services that require identity verification have taken steps to help ensure the trust and safety of all participants.
This new economy offers new opportunities and challenges. With identity verification, businesses can navigate those challenges, lower costs and risks, expand into new markets and build trust with their customers and communities.
Whichever your use case, accurately and efficiently verifying identity is essential for your organization. Protecting your business — and your customers — is fundamental to smooth operations and maintaining your brand reputation.