Identity verification is a process of verifying the identity of customers before they can be introduced as legitimate individuals in a particular business. As businesses are required to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, they acquire the services of identity verification software to screen their customers. This screening process is done based on the business requirements and the concurrent KYC/AML laws in that region. 

Features of Identity Verification Process

There are multiple features of identity verification that are mostly provided by ID verification solutions in one place. How these verification processes are carried out depends upon the nature of the business and the subsequent requirements for access.

Face Recognition

Face recognition feature, in the identity verification process, matches the face of the customer with the picture on the provided government-issued ID document. The facial recognition software checks for liveness detection and identifies if there is any sort of tampering with the picture. 

Document Verification

The document verification feature verifies the customer’s information remotely without any hassle of carrying documents and visiting banks. In this process, the customer enters the information during registration and uploads the picture of a government-issued ID document, or shows it to the camera. Then the provided information is cross-checked against the document. Moreover, the authenticity of the document is checked by Machine Learning (ML) and Artificial Intelligence (AI) models.

Address Verification

The address verification feature also employs the same technology as document verification. The document could be any government-issued ID document with your address and name. Moreover, it should be valid (not expired). In this process, the name and address on the document are verified along with the document’s issue date.

Consent Verification 

The importance of customer consent cannot be more emphasized in the modern era of authorization laws and regulations. In the consent verification process, the customer is required to show their face to the camera along with a handwritten or printed note. This note shown by the customer should be easily visible to the camera. The system checks for liveness detection and extracts the note information remotely. In this way, proof of consent of the customer is established.

2-Factor Authentication 

The identity verification solutions also cover those businesses which want to verify the identity of customers through their cell numbers. In the 2-factor authentication process, the customer is required to provide their cell number. Then, the identity verification system generates an automatic code and sends it to the provided phone number. 

Why Identity Verification Service is Important for Your Business

According to the AARP Fraud Watch Network, almost 90% of identity theft crimes are related to credit or debit cards. Some criminals even open accounts in the name of the cardholders and finally they use these stolen cards to make purchases illegally. There is a common misconception that only the customers are harmed in this process. When the customer reports a fraudulent card purchase to the business, the business is liable to issue a chargeback. Then, the business loses both the merchandise bought by the illegal payment and the payment itself. If the business is forced to issue too many chargebacks, then it risks revocation of the ability to take card payments.

Choosing the Right Identity Verification Solution

It is pertinent that businesses be careful in choosing the identity verification software to partner with. Businesses must make a checklist on the most important features they want their partner to provide. However, they must check the ID service provider’s reviews given by satisfied and unsatisfied clients. This should give you a clear picture as to how to make the best decision. However, you should check for the following:

• Accuracy of results while performing the verification of identity. Some top-of-the-chain ID verification software claim to provide result accuracy ranging from 90% to 99%.
• The ID verification system must have secure backend servers where they store your customers’ information.
• The solution must have a swift and simple service to provide the results. It must not be time-consuming and messy.