Identity verification (IDV) is now crucial for businesses, particularly for large companies that handle a high volume of identity documents during the onboarding process. However, there’s a significant difference between simply capturing or scanning an identity document to obtain an image and employing a fully automated identity verification process.
Let’s delve into this disparity to understand why the latter is essential for companies aiming for robust security and seamless operations.
Assuring thorough verification
When a company opts for capturing or scanning identity documents, they’re essentially taking a snapshot of the document without delving into its contents. While this method may seem convenient and quick, it overlooks the critical aspect of verifying the authenticity of the document and the information it contains. Without proper verification, businesses are vulnerable to various risks, including fraud, loss of consumer trust, and regulatory non-compliance.
On the contrary, a true identity verification process involves utilizing advanced technology, such as optical character recognition (OCR), to extract data from the document accurately. Additionally, it goes a step further by subjecting the extracted data to a thorough document fraud analysis (DFA) process, scrutinizing hundreds of data points for signs of fraudulent activity. This comprehensive approach not only ensures the legitimacy of the document but also detects any attempts at manipulation or forgery.
Scaling up the right way
For large companies processing numerous identity documents, the benefits of opting for true identity verification are abundant. Firstly, it significantly reduces the risk of fraud by flagging suspicious documents and activities, thus safeguarding the company’s assets and reputation. Fraudulent activities, if undetected, can lead to severe financial losses and legal repercussions, making robust identity verification indispensable.
Moreover, true identity verification instills confidence among consumers, assuring them that their personal information is handled with the utmost security and diligence. In an era where data privacy is paramount, establishing trust with customers is paramount for sustaining long-term relationships and fostering loyalty.
Additionally, by automating the identity verification process, companies can streamline their operations and reduce the need for manual intervention. This enhances efficiency, creates a better user experience, and also minimizes the risk of human error, ensuring consistent and accurate results. As a result, companies can allocate their resources more effectively, focusing on core business activities rather than tedious administrative tasks.
Avoiding risky business
Choosing to rely solely on capturing or scanning identity documents can pose several challenges for large companies. Apart from the heightened risk of fraud and loss of consumer trust, it can also lead to increased staffing needs and operational costs. Manual verification processes require additional manpower and time, leading to inefficiencies and delays in onboarding processes.
Furthermore, the absence of a robust identity verification system may expose companies to regulatory fines and penalties for non-compliance with data protection laws. With stringent regulations governing the handling of personal information, especially in sectors like finance and healthcare, companies cannot afford to overlook the importance of proper identity verification.
Adapting to the times
True identity verification is not just a checkbox on the onboarding checklist; it’s a fundamental aspect of building a secure and trustworthy business environment. Large companies should leverage advanced technology and automated processes to mitigate risks, enhance efficiency, and bolster consumer confidence.
In our increasingly fast-paced digital world, investing in true identity verification is not just a choice—it’s a necessity for staying ahead of the curve and safeguarding business interests.
About the post:
Images are generative AI-created. Prompt: A funky female robot with dozens of lenses on her head is looking at a photo of a black man, photorealistic, cyberpunk, vaporwave, steampunk. Tool: Midjourney.
About the author:
Adam Desmond is the Commercial Head at IDVerse. A seasoned identity professional with extensive commercial experience in risk management and threat mitigation, he has spent over a decade working at technology companies specializing in document verification and biometric solutions, including GBG and Mitek Systems.
