ID verification solutions have not gone unnoticed as they massively help financial institutions, e-commerce sites, art dealers, real-estate firms, and every other industry to fight illicit activities. While the fraud trends have evolved with criminals deploying new techniques to exploit businesses, digital ID checks are also revamping.
Criminals use spoofing, deepfake, phishing, and Ponzi schemes to bypass security protocols. Where this helps them with easy digital onboarding, businesses pay a huge price including reputational damage followed by financial instability. However, with advanced IDV solutions in place, industries can not identify fraud risks in time but also increase caution against them.
This blog provides an overview of identity verification evolution and the diverse methods that businesses have been using.
An Overview of Identity Verification Services Transformation Over the Years
In its truest sense, validation of identity refers to running authenticity checks on client information. The process is mandatory to prevent illicit actions, criminal onboarding, compliance risks, and other serious repercussions. Companies have been using different ID verification methods depending on their internal and legal requirements. The most common way is document validation.
Customers submit national ID cards, driver’s licences, passports, shotgun licences, firearms certificates, and other applicable documents. However, with time technology has evolved and data forgery is no more a tricky task. Over the years identity verification service providers have been offering advanced solutions to counter fraud. Read on to learn the breakthrough digital ID checks have been through.
The Babylonian Empire
Authentication of ID has evolved over the decades into what is now seen as a census. In this transformation journey, the Babylonian Empire was among the first civilizations to collect, analyse, and record people’s information.
The Roman Empire
With time, identity verification underwent advancements and became more accurate during the Roman Empire era. The process involved use of several documents to create a reliable procedure for authentication. In 1414, King Henry V introduced the first passport which individuals could use to travel across England. Later with more technological advancements and the invention of photographs, ID verification became more trustworthy.
1960 to 2010 – the Real Breakthrough Years
The year 1960 came with an actual breakthrough for validation of identity when the first computer password was made. Since then, complex combinations of numbers, letters, words, and other characters have become a reliable way to increase information protection. However, the data breach in 1966 questioned passwords’ accountability in preventing hacking attempts.
In 1990 secret questions were added as an additional security measure. Customers used Two-Factor Authentication (2FA) to log in to their accounts and pass digital ID checks. However, fraudsters also figured out ways to breach these checks. Hence, in the 2010s, the first advanced biometric systems took over. They were first seen in mobile phones and are now present everywhere, from shopping malls to online websites.
Types of Methods Used for Authentication of ID
The end to evolution of identity verification services is uncertain as with every passing day advanced technologies emerge and take the process one step forward with the same goal – fighting fraud. IDV services are offering AI-powered biometric checks that are hard to breach. Further common identity verification methods businesses use to differentiate between imposters and legitimate users are in the next section:
During document verification, users submit papers that contain government-approved information which is checked by businesses. With AI-powered digital ID checks, they identify signs of tampering. In the case of manual verification, detecting modification becomes challenging as software like Photoshop helps criminals make advanced forms of manipulations. However, with OCR tools, data extraction becomes error-free while machine learning gets accurate results.
Online Consent Verification
In this process, identity verification services help businesses identify ID claims of users by asking for a video or picture that contains a visual representation of documents. Online consent authentication involves customers holding their identity papers during a live call or recording a video. The ID verification systems then analyse documents along with facial features of users.
Being an improved form of identity verification, biometric recognition is currently the most reliable method to validate customers. This IDV technology authenticates users by analysing their facial features including nose, retina, and other traits. Biometric tools use mathematical algorithms that make identification forgery-proof, as biological features are impossible to replicate. They further analyse the background for liveness detection.
Biometric digital ID checks ensure the real-time presence of customers while accessing a service and efficiently identify spoofing or deepfake attempts. Hence, users can avail touchless and friction-free onboarding.
While bringing the information together, it can be seen that online global ID verification has been around for years. With technological advancements, it has equally evolved alongside societies. As of now, digital ID checks offer improved ways to counter fraud, safeguard users from malicious identity theft techniques, and create a more secure business landscape.