Online Identity Verification Checks | The Ultimate Guide To Remote Authentication

In recent times of digitization, many businesses have shifted their operations to online platforms to optimize their functionalities. Along with this change came the threat of external risk and financial theft. Since many companies started providing their services through online channels without identity protection, imposters breached the customer’s personal information. A report states that approximately 441,822 people complained about credit card fraud in the year 2022. This has led businesses to incorporate online identity verification checks to protect the customer’s identity information from the unauthorized reach of imposters. 

An Introduction to Online Identity Verification

Online identity verification solutions refers to the process of verifying the customer’s identity through online platforms. It ensures that the individuals are exactly who they pretend to be in reality and are not fake. Companies optimize the use of modern technology to verify that individuals are legitimate and do not pose a threat to their company’s financial operations. The use of advanced technological services increases the security of a customer’s identity because identity checks online comply with the regulations of Know Your Customer (KYC). Digital identity checkers simplify the onboarding experience as they verify customers on a remote basis, which reduces their overall processing times.        

Different Ways to Verify Customers through Online Identity Verification Checks

The ability to check online identity of the customer provides businesses with a solid verification framework, where only the customers that are able to prove a legitimacy can use the services. Companies have the possibility to do the identification of their customers in different ways digitally.That can be made with biometric authentication, facial recognition, and behavioral analysis. In addition to this topic, let’s have a discussion of these methods in a bid to realize how they authenticate customers’ identity and shield their data from data breaches.

Biometric Verification

Technologies, like biometric verifications, which are smart ways of confirming the genuineness of the users are embraced by companies to check whether their customers are actually the genuine entities. It does traditional ID authentication and identifies user based on person’s unique trait, especially compared with the data existing in the database. In the field of biometrics, there are three types of verifications: face recognition, fingerprints/scan, and voice recognition. Those services available I the online banking field may be used to verify customers’ identity from a distance.

• Fingerprint Scanning: Nowadays when it comes to digital security, fingerprint scanning is one of the most inserted verification methods among conventional ones. The digital ID check in this instance could be seen as a scanner that collects the person’s unique fingerprint and then also matches it against fingerprint data stored in the government’s database. It boasts strong authentication because among the population there is simply no two fingerprints being the same. With fingerprint scanning, organizations identify that their customers are legal bodies by requiring their customers to input fingerprints of their fingers during verifications before allowing them to operate their services.

• Facial Recognition: Facial recognition is, due to its features detection of customer’s face, a really secure method of identity authentication because it stores the face in a computer database. The system cross-matches this data with the person’s record, which determines the identity of the user for better authenticity.
•  Companies can incorporate video KYC services, which allows them to connect with customers through video calls where examiners prompt users to perform specific tasks, such as head tilting and eye blinking. It confirms that the person in front of the camera is an actual entity, which ensures security and data protection. 
• Voice Recognition: Voice recognition is AI identity verification method in which companies capture the voices of their customers. Customers are asked to say specific phrases, which are recorded by interactive voice response systems. This system captures the pitch and intensity of customer’s voices, which is later used to confirm their identity.

Multi-Factor Authentication

Multi-factor authentication is a way in which customers are asked for additional questions other than passwords. Through multi-factor authentication, companies send a specific unique code to customers via email or SMS. Some of the widely used multi-factor authentication services are:

• One-Time Password (OTP): An OTP is a code that can only be used one time for verification purposes. It authenticates the customer’s identity and prevents the risk associated with passwords.
• Two-Factor Authentication: Two-factor authentication prompts customers to verify their identity in two separate steps. The first step is to ask them to enter their PIN and the second step is to enter a code that is sent to them through email or SMS. It provides additional protection for customer’s data and secures companies from unauthorized access. It simplifies the remote verification process as all these verification steps can be done through the user’s home.                 

Digital Footprints

Digital footprint is a verification method by which companies stalk customers’ online presence on social media. It scans their phone numbers and emails to verify whether they are authorized by government entities or not. The customer’s social media accounts are examined to analyze their risk profiles and their online presence to ensure that they are not involved in illicit activities.    

Final Thoughts

Online identity verification checks have leveraged the way companies verify their customers. They use advanced technological tools to authenticate that their customers are legitimate entities. Online identity checks protect companies from unauthorized access and secure customer’s personal information from external reach and privacy threats. Using biometric verification, multi-factor authentication, and digital footprints protects companies from illicit activities. These verification methods help streamline the remote verification processes as all these tools can verify customers from their homes, improving their overall experience and trust.