What is Identity Document Verification?
Identity document verification is the process of confirming whether the presented identification documents, such as a national ID card, driver’s license, or passport are authentic. This verification procedure assures that the submitted document belongs to the person and that it is not forged or altered. It is quite commonly used in security checks, regulatory compliance, and onboarding identification verification processes.
How Does Identity Document Verification Work?
Identity Document Verification involves several steps to authenticate the document and its holder:
1. Document Capture
The first step to identity document verification is that the client provides a copy of his/her identity document, either in hardcopy or digitally, usually by taking a picture or scanning. Some systems may require a few more photos, perhaps a selfie, to determine the identity of the one presenting the document.
2. Document Analysis
Legitimate papers issued by the government have certain unique characters such as, watermark, hologram, barcodes, and types of fonts. Once the document is submitted in the system, it scans for these security features.
3. Data Extraction
The OCR technology is applied in extracting data from the identity document which include the name, date of birth, and the document number. Once the data is input, the system confirms the validity and accuracy of such data by comparing it with relevant databases.
4. Biometric Matching
To confirm the correct identity of the user bringing the document, the system scans the biometric information in the document. The system shall retrieve the biometric information from the document and compare it with the livescan of the individual to ascertain whether there is a match or no match.
5. Verification Outcome
If the document passes all security and data tests, then it is considered valid and the person verified. Otherwise, there are disparities, and further action is taken to solve the problems, such as requesting additional documentation or manually going over the submission.
Benefits of Identity Document Verification
Identity Document Verification provides several important advantages:
1. Enhanced Security
With proper identity document verification in place, only authorized users can access services or systems. Businesses and institutions can lower the risk of fraud by verifying identity documents.
2. Regulatory Compliance
Compliance with laws like Know Your Customer (KYC) and Anti-Money Laundering (AML) are crucial in industries like healthcare and banking. It is mandated by the law to confirm the identity of clients and identity document verification helps in fulfilling these standards.
3. Fraud Prevention
By preventing someone from presenting counterfeit or stolen documents, document verification helps stop identity theft, phishing, and other forms of fraud.
4. Efficient Onboarding
By automating identification checks, cutting down on manual review time, and increasing overall efficiency, identification document verification simplifies the customer onboarding process.
Common Use Cases for Identity Document Verification
Identity Document Verification is used across various industries and scenarios:
1. Financial Services
During the customer onboarding process, satisfying the KYC and AML compliance requirements is mandatory for financial service providers. Banks and fintech institutions utilize identification document verification to guarantee the validity of account holders.
2. Healthcare
To preserve sensitive medical data and adhere to privacy laws such as HIPAA, healthcare professionals authenticate patient identity documents.
3. E-commerce
Identity document verification is used by online businesses to confirm users’ identities, particularly in high-value transactions. This prevents fraud and guarantees safe payment processing.
FAQs about Identity Document Verification
What types of identity documents can be verified?
Identity documents like passports, driver’s licenses, national identity cards, and sometimes residence permits are usually required for verification. The service provider and country’s regulations determine which set of documents will be accepted.
Is identity document verification mandatory for all businesses?
While not necessary for every business, several regulated sectors, including online marketplaces, healthcare, and financial services, require compliance with legal standards such as KYC and AML regulations.
