Modern advancements in information technology have revolutionized the way we interact with the world. This is what is known as The Digital Transformation. But there's a dark side to this online revolution. The Internet has become a breeding ground for deception, fraud and theft. In 2020 alone, 49 million US consumers were victims of identity fraud with over $56 billion in losses. No wonder people have trust issues online.

The future of identity verification is heading towards a digital landscape. Companies are now seeing a shift towards customers being open to sharing digital identity documents in a secure manner. This is seen in the increase in governments exploring digital forms of IDs like digital drivers’ licenses and ID cards. As a result, online verification and authentication tools are becoming more prevalent and essential for various industries. Looking ahead, the next generation of digital ID verification and authentication tools will not only rely on digital documents but also incorporate additional factors like user location and typical behaviors to enhance the verification process further. Advanced algorithms will play a vital role in providing real-time verification results, making the process more efficient and secure.

Authentication offers numerous benefits for businesses, including reducing the risk of account takeovers and identity fraud. By verifying users' identities through authentication processes, businesses can enhance security and safeguard sensitive information. Additionally, authentication helps streamline customer experiences by enabling easy and secure access to accounts and transactions. Implementing solutions like single sign-on (SSO) can improve user satisfaction and loyalty, ultimately contributing to increased customer retention and trust. Overall, robust authentication mechanisms not only protect businesses from fraudulent activities but also enhance customer satisfaction and loyalty, leading to improved business performance and competitiveness in the market.

As the CEO of Authenticate, it's my responsibility to make sure that we live up to our name for the sake of trust and safety. We want to provide the most comprehensive identity authentication and fraud prevention service on Earth. Our MedallionTM can perform an instant forensic analysis of over 6,000 government IDs and passports from 200 countries and territories in 38 different languages. With the use of machine learning, computer vision, and AI we're able to automate identity authentication while keeping your user experience simple, easy-to-use and free of any friction whatsoever. The entire process can be completed in two minutes. Identity verification builds trust between businesses and users by validating user information to prevent fraud and ensure site safety.

The first step in authenticating the identity is verifying the document itself has not been forged or tampered with in any way. Before The Digital Transformation we'd rely on the naked eye, but nowadays even with the closest look you may not notice something as simple as date font field inconsistency. And it would take forever to look up each and everybody online to prove an identity is authentic in and of itself. Its another challenge altogether to ensure that the person holding the ID is indeed the person it belongs to. That's why we use facial recognition to match the ID photo to a real-time selfie of the user along with multi-factor authentication.

Identity proofing is indeed a crucial component of the authentication process. At Authenticate, we have streamlined our identity proofing process into a simple 1, 2, 3 procedure. First, we have access to the largest template library of government-issued IDs and passports worldwide, allowing us to instantly conduct over fifty forensic tests on document images to detect any tampering, forgery, inconsistencies, or fraud. This initial step ensures the accuracy and integrity of the provided identification documents. Following this, we meticulously compare the information extracted from the Machine Readable Zone on the passport or barcode to the data parsed through Optical Character Recognition (OCR) from the front of the document. This meticulous verification process helps us confirm the authenticity of the document and the accuracy of the information presented. Lastly, leveraging state-of-the-art facial recognition technology, we analyze the facial image on the document and compare it to a selfie provided by the user. By employing iBeta Level 2 independently certified anti-spoofing technology for liveness detection, we ensure that the selfie is a genuine representation of the individual, safeguarding against potential fraud attempts. This comprehensive approach to identity proofing not only verifies the user's claimed identity but also plays a vital role in the broader authentication process by ensuring secure access to services and accounts.

The Medallion™ experience is totally customizable and white-labeled. You can include facial recognition and liveness detection or not. You can offer knowledge based authentication as a complement or substitute. You can even collect Education, Employment and Professional License information to have that independently verified if you like. We provide layered identity verification tailored to your risk tolerance, privacy regulations, and user experience goals.

Most Common Ways to Authenticate

Authentication methods are crucial for verifying the identities of customers accessing online accounts or services. The most common ways to authenticate customers include:

• Passwords: Passwords remain a prevalent method of authentication, requiring users to input a combination of characters to gain access to their accounts. Despite some concerns about their security, passwords are still widely used by businesses for single-factor authentication.
• Two-factor authentication (2FA): 2FA enhances security by requiring users to provide two distinct forms of identification for account access. Typically, this involves entering a password in combination with a unique code sent via SMS or through an authentication app. By requiring both factors, 2FA adds an extra layer of protection against unauthorized access.
• Knowledge-based authentication (KBA): KBA validates users through answers to personalized questions that were set up during the initial account creation process. These questions often relate to personal information, such as pet names or mother's maiden names. KBA is frequently used in conjunction with other authentication methods to further verify a user's identity.
• Biometric authentication: Biometric authentication utilizes unique physical characteristics, such as fingerprints, facial features, or iris scans, to verify a user's identity. This method offers a high level of security as these biometric traits are difficult to replicate or falsify.

These common authentication methods play a vital role in safeguarding customer accounts and sensitive information from unauthorized access and potential security breaches. Businesses often implement a combination of these techniques to provide robust security measures and ensure the authenticity of their customers.

Identity Verification Standards

Identity verification regulations and standards are not standardized across all cases. Variations can be significant, influenced by factors such as the industry of operation, specific jurisdictions, customer demographics, and unique business risks. Different industries may have their own set of regulations governing identity verification practices. Financial institutions must adhere to Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, while online marketplaces must comply with verification standards outlined in the INFORM Act and other applicable laws. Federal agencies and businesses working with them are subject to NIST Special Report 800-63-3, which details the necessary steps for effective identity verification. Additionally, businesses need to consider the regulatory frameworks of the jurisdictions in which they operate, as laws may vary from state to state or country to country. Furthermore, businesses catering to age-restricted products or services are required to implement specific age verification protocols. Ultimately, individual business risk profiles play a crucial role in determining the appropriate identity verification methods to be employed.

Benefits of Automated ID Verification

Automated identity verification offers several key benefits for businesses and customers alike. Firstly, one of the standout advantages is the enhancement of customer confidence. By implementing robust ID verification processes, businesses can instill trust in their customers that their personal information and assets are secure, thereby increasing overall confidence in the business. Secondly, automated ID verification streamlines the verification process for customers, making it quick and hassle-free to submit necessary documents for approval. This efficiency not only saves time but also improves the user experience by eliminating lengthy delays in account setup or high-value transactions. In addition to boosting customer confidence and improving process efficiency, automated ID verification helps businesses maintain reliable regulatory compliance. Regulatory requirements such as Know Your Customer (KYC) and anti-money laundering (AML) necessitate thorough user identity verification. Automated solutions can ensure that these regulatory obligations are met, thus minimizing the risk of potential fines or sanctions due to oversight. Another crucial benefit of automated ID verification is the reduction of risk for businesses. By leveraging solutions that verify against authoritative data sources, such as government agencies or telecommunication companies, businesses can better assess potential risks associated with customer identities. This enables informed decision-making and ultimately helps mitigate risks related to identity fraud or account takeovers.

How to Use Identity Verification for Your Business

Implementing identity verification for your business involves exploring various methods to ensure the security and authenticity of your users. Here are some common approaches to identity verification that you can consider:

• Government ID Verification: This method typically requires users to upload a photo of their government-issued identification, such as a driver’s license or passport. The uploaded document is then verified to confirm the user’s identity.
• Digital ID Verification: With the increasing digitalization of identification documents, businesses can opt for digital ID verification. This may involve accepting digital forms of IDs like mobile driver’s licenses (MDLs) or e-passports, which provide users with convenient options for verification.
• Document Verification: In addition to government IDs, businesses can implement document verification processes to collect supplementary documents for further verification purposes. These additional documents may confirm details such as address, income, employment history, or other relevant information.
• Database Verification: Utilizing database verification allows businesses to cross-reference user-provided information with authoritative databases like those maintained by governmental bodies such as the Department of Motor Vehicles (DMV) or the Internal Revenue Service (IRS).
• Selfie Verification: Selfie verification adds an extra layer of security by requiring users to submit one or more selfies. These images are then compared against the photos on their government-issued IDs to ensure a match, thereby helping to prevent identity theft and unauthorized access. By incorporating these identity verification methods, your business can enhance security measures and build trust with your users by ensuring that only legitimate individuals are accessing your services.