During Covid 19, businesses moved online. Although the pandemic is over, online systems are still replacing traditional methods. Businesses are going online, there is a need for more security than ever. Fraudsters are using various techniques to reach organisational sensitive data. Electronic identity verification is the only way to protect organisations from fraud and financial attacks. It mainly protects the businesses operating within industries subject to ‘Anti-money Laundering’ (AML) and ‘Know Your Customers solution’(KYC). It facilitates finance industries to have KYC and AML compliances.
What is Electronic Identity Verification Solution (EIDV)?
EIDV is the process of verifying customers’ identities electronically through digital means such as computers or mobile devices. It facilitates companies with automation to have secure onboarding. It helps to meet AML and KYC compliances which are mandatory for every organisation. Additionally, companies employ anti-fraud measures with EIDV.
EIDV employs many of the same strategies as manual identity verification, such as the collection and analysis of a government-issued ID. But EIDV facilitates the collection of additional details and risk signals that are impossible to collect through manual identity verification, such as browser fingerprint, IP address, and behavioural or passive signals which empowers making a more informed decision while onboarding
Government ID Verification
Clients provide photos of formal documents such as state IDs, identity cards, licences, and passports. Automatic algorithms perform data extraction and match with legal databases. It identifies whether the documents provided are legitimate or not. artificial intelligence and machine learning algorithms are highly efficient and swiftly recognize if there is any variation. Automated heuristic checks identify whether the information is authentic or not.
Some companies require their clients to provide various documents such as transcripts, bank statements, insurance slips, and social cards to access specific information. These documents are scanned within digital systems electronically and a person is verified. It makes onboarding secure, and falsified information is detected automatically. An electronic verification system filters out if the data is tempered or inaccurate and protects the organisation.
User-provided information is compared against databases; it makes organisations aware of any kind of risk. For example, interlinked databases help to identify if a person is involved in any kind of criminal activity. Companies have links with legal databases such as records of crimes and mugshots, which allow them to access the customer’s risk profile and safeguard the organisation from future risks.
Digital face scanners capture real-time selfies and compare them with the previously stored record. Sometimes face liveliness detection is directly linked to government identity verification systems, enabling organisations to identify a person before onboarding them. .
EIDV Benefits for Businesses
EIDV provides access to more signals. Electronic verification allows insight into additional device and behavioural signals that can indicate a high risk of fraud. A person’s IP address, location, and online behaviour are just some examples of the signals that can help to catch bad actors. EIDV is preferred by organisations as per the following benefits:
- EIDV service providers facilitate business with a more accurate verification process. Manual verification involves human beings, who may make mistakes that make the organisation insecure. Fatigue and mental pressure are linked with manual verification thus automated EIDV is more reliable due to less error rate.
- Automated electronic identity verification systems work with ML algorithms that perform very fast processing. It facilitates quick verification which is not possible manually.
- Electronic client verification facilitates users with online systems, where they are not required to go onsite and stand in long queues for verification processing. It enhances customer experience and builds trust between the organization and its clients.
- EIDV enhanced customers’ privacy as automatic algorithms are more reliable. In manual verification, there is a risk of data breach. Customers often hesitate to provide sensitive information in manual verification involving humans.
- The technology that powers electronic identity verification is extremely fast. Verification is often completed in seconds, it reduces friction compared to manual methods and makes onboarding secure.
Electronic Identity verification provides a digital solution to track customers’ identity before having them onboard. It is convenient for both clients and organisations to process verification online. It offers hassle-free onboarding as automated AI and ML algorithms work smartly compared to manual verification processing in terms of both time and accuracy. It makes digital onboarding secure and allows authentic clients onboard. EIDV may involve government IDs, electronic databases, or document verification processes to verify a customer’s identity. EIDV solutions facilitate businesses and organisations to cope with this digital era.