Methods of Digital Identity Verification

In the age of digital platforms, it can be tricky to conduct proper identity verification while maintaining a streamlined customer experience. Usernames and passwords are simply no longer enough identity verification to stand up to today’s cybercriminals. Thorough identity verification is paramount in ensuring your company’s digital security, so let’s take a look at a few of the identity verification methods available and evaluate possible pros and cons.

Knowledge-Based Authentication (KBA)

You have probably used knowledge-based authentication before as it’s one of the most common forms of identity verification. KBA uses security questions for identity verification designed to be easy for the user to answer, but difficult for a stranger to guess. Timers can also be employed to ensure that the answer isn’t being researched by either a person or a computer program. This is a good method of identity verification as most users are familiar with it, but unfortunately, the security questions’ answers can often be easily guessed using social media or manipulated out of the customer through social engineering. Social engineering is the act of manipulating someone into divulging personal information about themselves for identity verification, usually via email or text message.

Two-Factor Authentication (2FA)

Two-factor authentication is another method of identity verification that many users are familiar with. As the name suggests, it includes authentication from two sources for identity verification. As with KBA, 2FA is a well-known identity verification method and is usually quite simple to perform as most have their cell phone nearby to receive authentication codes. However, if this code is given to anyone else or if social engineering is employed to steal the code, this method of identity verification can also be somewhat easily compromised. 2FA is also reliant on the user’s cell and/or internet service so, in some cases, the third party could slow the identity verification process.

Credit Bureau-Based Solutions 

This form of identity verification relies on information from major credit bureaus such as Experian, Equifax, and TransUnion to provide identity verification information about potential customers, such as name and social security number. This identity verification method is fast, cost-effective, and easy to implement, but it also comes with some downsides. The credit bureaus are subject to cybersecurity breaches and these data breaches have given cyber-criminals access to personal, identity verification information from their databases. This method of identity verification can also be tricky for those who haven’t built up credit yet, are recent immigrants, or who haven’t used mainstream financial services. Customers like these aren’t easily found within the credit bureaus’ databases. 

Database Solutions

Database identity verification solutions use online, offline, and social media data for identity validation or to detect if someone committing fraud. They use many different sources for identity verification and provide a confidence score based on how likely it is that fraud is being committed. However, database identity verification solutions are easily spoofed by creating fake social media profiles and online identities. They are also often not KYC (Know Your Customer) or AML (Anti-Money Laundering) compliant, so they might need to be used in conjunction with other identity verification solutions to ensure identity validation. 

Online Identity Verification Solutions

Online identity verification is often a great cybersecurity solution as it also provides identity validation by examining the customer’s ID and comparing it to a selfie the customer takes. Some may find the process a bit intrusive as it uses both AI and biometrics to examine them and their ID, but it is also a very effective form of identity verification for examining whether a person is impersonating a real identity. IDScan.net has robust online identity verification solutions that are constantly evolving to stay ahead of the curve.

At IDScan.net, online ID verification is a simple process:  

online identity verification

The technology automatically performs identity verification by checking that the ID is formatted correctly. It also checks that the information in the barcode matches what is displayed on the front of the ID. It then queries the USPS database to confirm that the address on the ID exists. Lastly, it moves to the pictures, calculating a confidence percentage in facial match between the photo on the ID and the selfie supplied by the customer. The selfie is also run through anti-spoofing processes to assure it is legitimate. 

The customer’s picture is first compared to a database of known faces to ensure that a human face is indeed pictured. An algorithm then maps the customer’s face and compares the layout of the pictured face to the face on the ID provided. The identity verification automation can then see more definitively whether or not the faces match and provide a percentage to represent the confidence it has in the faces being the same. Additionally, the confidence percentage threshold is customizable so you can decide what your company is comfortable with accepting. IDScan.net’s digital identity verification experts are available to walk you through the process and determine what percentage is acceptable for your business’ identity verification needs.

For more information about how our digital identity verification methods can help keep your business safe, reach out to sales@idscan.net.

What is digital identity verification?

Digital identity verification is the process of ensuring users or customers are who they say they are during digital transactions. For a more in-depth explanation, check out our blog all about digital identity verification.

What is the best method of digital identity verification?

There are five primary methods of digital identity verification, outlined above, that all have pros and cons. Generally, the most reliable and robust method is online identity verification solutions.

Where can my company find online identity verification solutions?

Reach out to sales@IDScan.net for a range of solutions for your business.