It’s not uncommon for any website or application to provide access to sensitive information to authenticate its users. Electronic identification and verification processes help keep essential and confidential information safe. But there’s more to how it all works.
This guide includes a closer look at electronic identity verification. You’ll learn how it works, how it improves organizational operations, and why it’s a solution to inefficient manual verification. You’ll also better understand the types of verification methods used today and how they function with eIDV to create safer online spaces.
What is Electronic Identity Verification (eIDV)?
Electronic Identity Verification (eIDV) is a digital process that uses technology to confirm and validate the identity of individuals in electronic transactions or interactions. Using several verification methods and databases, organizations can authenticate personal information an individual provides.
How Electronic ID Verification Improves Organizations
eIDV helps organizations create safer and more secure electronic ecosystems. Most businesses rely on verification for access to databases for clients and personnel, making eIDV versatile enough for application across sectors.
Benefits of using eIDV include:
- Enhanced Security: eIDV utilizes advanced technologies such as biometrics and document verification to ensure the authenticity of user identities, reducing the risk of fraudulent activities. Strengthening security measures helps protect sensitive information, financial transactions, and digital assets.
- Regulatory Compliance: Many industries are subject to strict regulatory requirements regarding customer identification and due diligence. eIDV helps businesses comply with these regulations, ensuring adherence to legal standards and reducing the risk of penalties.
- Fraud Prevention: By verifying identities electronically, organizations can address threats faster and more effectively. They can detect and prevent identity theft, account takeovers, and other fraudulent activities that can lead to financial losses and reputational damage.
- Streamlined Customer Onboarding: eIDV facilitates a seamless and efficient onboarding process for customers in various sectors. Finance, healthcare, and e-commerce can enjoy enhanced user experiences and reduce friction in user interactions.
- Digital Transformation: As businesses move more of their operations online, eIDV plays a vital role in supporting digital transformation initiatives. It allows organizations to transition from traditional, manual identity verification processes to automated, technology-driven methods.
- Cost Efficiency: Automating identity verification processes through eIDV can save costs by reducing the need for manual labor and paperwork. It streamlines operations and allows organizations to allocate resources more efficiently.
- Trust and Credibility: Establishing trust is crucial in online transactions and interactions. eIDV builds trust between businesses and their customers by ensuring the legitimacy of identities, fostering credibility and reliability.
- Preventing Unauthorized Access: eIDV helps prevent unauthorized access to sensitive systems and data by ensuring that only legitimate users with verified identities gain access. This is particularly crucial in sectors like cybersecurity and access control.
Why Choose eIDV Over Manual Verification?
Not all methods for proofing an individual’s identity are equal. Some are easily spoofed, whereas others are harder to crack. One thing is sure: manual verification cannot provide the same results as electronic verification.
Advantages of eIDV Over Manual Verification
Manual IDV relies on human performance, which is limited by several factors, such as speed and accuracy. Electronic IDV can be automated, making it faster, more accurate, and more effective.
Because eIDV is digital, it’s possible to shore-up system integrity with stronger security measures to prevent sensitive information from falling into the wrong hands. Manual IDV, being human-based, is prone to error. Where access control is not monitored, sensitive information can easily be compromised.
Easily Achieve Regulatory Compliance
As more transactions reliant on presenting and accessing sensitive information move online, regulatory compliance has evolved to protect users. eIDV plays a pivotal role in creating safer space because it can be automated, with mission-critical steps that can be followed with precision.
For example, KYC and AML processes are designed to establish that customers in the financial sector are legitimate entities and protect them from fraud. Where manual verification can take up to 24 hours, slowing a financial transaction, eIDV can occur in seconds.
Lower Cost and Improved Efficiency
Automation is one of the greatest benefits for organizations using eIDV. Transforming verification from a manual to an electronic automated process improves verification accuracy and makes the verification process scalable.
Where organizations would incur a large overhead for staff, the right eIDV solution can serve as a faster, more accurate, and always-on system for onboarding new customers and verifying returning customers.
Enhanced User Experiences
Traditional verification is reliant on the submission of proof that customers and users are who they say they are. Often, the proof is in the form of paperwork, such as scans of identity documents and proof of address. The proof is then verified by a human, which can include several interactions if spread over a day or week due to verification staff availability.
When compared to eIDV, manual verification creates customer experiences riddled with friction. Electronically verifying customers happens in seconds. And this speed is essential for creating favorable customer experiences. Faster verification enables customers to move directly to engage with your organization instead of longer waits due to slower internal processes.
eIDV Success Stories
No two businesses are the same. An eIDV solution versatile enough to apply in various contexts is essential. We’ve worked with the world’s leading brands, and here are three examples of how our eIDV solution has helped transform their operations.
PayU Transforms Customer Onboarding and Increases Conversion 25 Percentage Points Through Automation
PayU is a trusted payment solutions provider for over 450,000 merchants worldwide. Handling a staggering 10 million transactions daily across more than 40 emerging markets, Know-Your-Customer (KYC) is a cornerstone of its operation. Implementing AU10TIX’s solution significantly transformed PayU’s customer onboarding process.
With an average Digital ID verification time of just six seconds, the customer experience was vastly improved. Conversion rates increased by 25 percentage points, and the new nearly invisible ID verification process became instrumental in attracting and retaining customers who valued the quick and efficient service.
Fiverr’s Customer Conversion Grew to Over 90%
Fiverr is a global marketplace platform. It connects businesses with freelancers offering digital services in hundreds of categories. AU10TIX’s multi-layered approach to fraud detection, including our IDV Suite, Serial Fraud Monitor, and our “Liveness” feature, reduced instances of fake accounts by 5%, delivered a conversion success rate of over 90%, and produced a 10% decrease in the volume of customer service inquiries related to usability.
Payoneer Scale up Customer Onboarding and Boost Fraud Detection Rates
Payoneer helps millions of small and medium businesses transact and grow. As the major financial regulators oversee Payoneer, onboarding customers and adhering to compliance are significant parts of daily operations. AU10TIX’s IDV solution was the perfect choice for Payoneer. It improved fraud detection rates and dramatically expedited identity verification.
Types of Electronic Identity Verification
There are several methods of verifying customers. Each uses a unique identifier, and here are some of the most common types of verification.
Document Verification
Document verification using eIDV enables the validation of customer details, such as names, birth dates, addresses, and SSNs, by comparing them against electronic databases or submitted documents.
Traditionally, these checks are performed manually by humans. eIDV is used to automate and speed up document verification.
Biometric Verification
Biometric verification uses advanced techniques to authenticate individuals based on their unique physiological or behavioral characteristics. Verification methods include fingerprint, facial, voice, signature, hand geometry, DNA, and iris recognition.
Database Lookups
Database lookups with eIDV are used to quickly confirm an individual’s identity by comparing the information they submit with data stored in public and private databases. This method aims to validate whether the provided information aligns with the records available in a collection of databases.
Watchlists and Ongoing Monitoring
Watchlists consist of names, identities, or entities flagged for their involvement in fraudulent or criminal activities. When used with eIDV, organizations can identify suspicious individuals or entities, and prevent fraudulent activities.
SSN checks
SSN or social security number checks are essential for various online and offline transactions. Leveraging eIDV allows government agencies and private entities to prove an individual’s identity and provide access to products and services.
Proof of address (PoA)
Proof of Address (PoA) is a document or information confirming an individual’s residential address. eIDV-enabled PoA processes are streamlined, making it easier and faster for organizations to verify a customer’s address as part of an onboarding process.
Why is eIDV used for KYC and AML?
KYC and AML are both enhanced by eIDV. As critical financial industry practices, KYC and AML include a range of steps that financial institutions must follow to avoid the risk of failed compliance. eIDV’s automation simplifies both practices, using powerful algorithms that accurately process large amounts of data.
Choose Identity Verification that Industry Leading Brands Use
Fraudsters are getting smarter, and your business doesn’t have the luxury of being the latest victim of an identity breach. Our AI-powered identity verification goes above and beyond vetting people. It easily integrates into your systems for safer, more secure, and lighting-fast results that produce peak-performing operations and experiences customers love.
Why is eIDV crucial for businesses?
eIDV helps streamline identity verification, saving organizations time and money and enhancing user interactions.
What industries benefit from implementing eIDV?
All industries that require identity verification can benefit from implementing electronic identity verification (eIDV). Electronic identity verification (eIDV) offers significant advantages across diverse industries, including finance, healthcare, retail, and more. Its core function lies in bolstering security and streamlining identity verification processes.
What are the common challenges in implementing electronic ID verification?
Common challenges include identifying the right verification methods to support eIDV and access to power solutions that offer high accuracy. While there are several ways to confirm a person's identity, criminals have evolved their fraud techniques to incorporate sophisticated AI fakes. We recommend using more than one way to verify a person's identity and using advanced IDV solutions capable of detecting fakes.
Summary
Electronic Identity Verification is the digital process of confirming an individual’s identity using personal information like name, date of birth, Social Security number, and address. It enhances online security by ensuring the authenticity of users by prioritizing data security and confidentiality. As a means of proving users to be who they say they are, eIDV is crucial for various industries.
