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A Short Guide to Identity Verification in Today’s Revolutionized World

by Arthur Zuckerman

Scammers are intervening in every company to fulfill their illicit means, including money laundering and attempts to access financial accounts and actual user documents. But how will they use documents? Perhaps to look like a genuine user and sneak peek into their account for the purpose of takeover. That’s why identity verification is important in the digital landscape, as it helps genuine users be safe so that no other person can use their credentials or real documents. 

This blog will help you understand a few things about document verification.

What is Identity Verification?

Identity verification plays a crucial role in confirming the identities of individuals in various scenarios, such as when signing up for new accounts or validating legal documents for international travel. By verifying the authenticity of individuals, businesses can ensure that they are interacting with real individuals and not fraudulent actors. This process is essential for maintaining trust and security in online transactions and interactions.

Furthermore, identity verification is becoming increasingly ubiquitous across various industries and sectors. From financial institutions and e-commerce platforms to healthcare providers and government agencies, businesses of all types are integrating identity verification solutions into their operations. This ensures compliance with regulatory requirements, mitigates risks associated with fraud, and enhances overall security measures.

Importance of Identity Verification Service

The increasing prevalence of identity verification can be attributed to several factors, including the rising incidence of data breaches and document theft. While regulatory bodies play a crucial role in establishing guidelines and standards for data protection, they may not be sufficient on their own to effectively combat the sophisticated tactics employed by fraudsters.

  • The surge in data scamming incidents, as highlighted by the Identity Theft Resource Centre (ITRC), underscores the growing threat posed by cybercriminals. From 2020 to 2022, data scamming cases surged by 17%, indicating a concerning trend of cybercriminals exploiting vulnerabilities in digital systems to steal sensitive information.
  • The Federal Trade Commission (FTC) reported a staggering 1.4 million document theft reports in 2021 alone. This alarming statistic underscores the urgent need for enhanced measures to safeguard personal and financial data from falling into the wrong hands.

These stats are enough to portray the significance of identity verification services today, as scammers are trying every tactic to sneak into customers’ personal data. Almost every industry, from healthcare to gaming and gambling, is using identity verification services to reduce the high probability of risks and fraud. 

ID verification is an essential step of KYC and AML regulations. Financial institutions and insurance companies, which are high-risk industries, use this process to secure their customers. 

After COVID-19, document verification suddenly rose as it helps to provide secure user onboarding remotely, opening user accounts from another country, or borrowing funds from any financial organization. 

Common Types of Validation of Identity 

Usually, two types of ID verification are being used in every organization, including:

  • Documentary ID Verification
  • Electronic ID Verification

Let’s move further to understand their in-depth meanings.

Documentary ID Verification 

Customers upload images of their legal documents, including their driver’s licenses and passports. Sometimes, firms demand their selfies to authenticate them and then compare these documents with pre-recorded databases. This helps in verifying that the user is real and not fake. 

Electronic ID Verification 

Users have to fill in specific information in online forms, including address, name, date of birth, passport number, and any security code. Then, companies use systems that automatically compare this information with a centralized database to verify users. 

It’s complicated to say which type of ID verification is essential and credible, as firms use both from time to time. 

How can Firms Differentiate Authentication from Verification? 

Differentiating between authentication and verification is crucial for effective identity management. Authentication confirms an individual’s identity through credentials like passwords or biometric data, while verification validates the accuracy of identity information provided, often through document examination or database comparison. Clarity on these distinctions ensures proper use of systems and enhances security measures.


In the verification process, systems play a crucial role in confirming the authenticity of both the document owner and the documents themselves, ensuring they correspond to the individual whose information is stored in a database. For example, consider Anna George, a real person residing at street number 123 in London. In this scenario, the verification process involves cross-referencing the details provided with authoritative sources to validate their accuracy. This verification typically includes confirming the individual’s identity against government-issued documents, such as passports or driver’s licenses, and verifying their address through official records. By ensuring that all information aligns and is consistent with the owner’s details, the verification process helps establish trust and reliability in the accuracy of the data. Ultimately, this verification by the owner serves as a crucial step in confirming the legitimacy of the individual’s identity and the associated documentation.


In this verification process, the primary objective is to ascertain whether the user is genuine or potentially fraudulent. This entails verifying whether the documents submitted indeed belong to the individual claiming to be their owner. For example, the verification process may involve confirming whether Anna George is the rightful owner of the documents she has submitted, or if Robert Daisy is legitimately associated with the provided documentation. Essentially, the aim is to establish the true identity of the person behind the submitted documents, ensuring that there is no misrepresentation or fraudulent activity involved. By confirming the authenticity of the documents and linking them to the correct individual, organizations can effectively mitigate the risk of identity theft, fraud, and other malicious activities, thereby fostering trust and integrity in their processes.

The following are the most commonly used processes of authentication:

  • Data Possession Challenges include any authentication application and One-Time Passwords (OTP), as these can counter porting attacks and SIM swaps. 
  • Knowledge-based challenges include passwords, security codes, owner usernames, and any secret questions, leading to maximized abandonment rates. 
  • Biometric Checks include all types of biometrics, including facial, iris, or fingerprint. 

Understanding this distinction is crucial for the accurate operation of automated systems. Organizations utilize both authentication and verification methods based on their specific requirements and experiences with different use cases. By recognizing the nuances between these two processes, businesses can effectively implement the most appropriate identity management practices and security measures to safeguard against fraudulent activities and ensure the integrity of their operations.

Final Words 

With the advancement of automated systems, there arises a pressing need for specialized verification mechanisms to prevent imposters from gaining unauthorized access to confidential areas. Digital identity verification emerges as the solution of choice, particularly in sectors such as finance and insurance, where the security of users and their sensitive information is paramount. By implementing robust ID verification protocols, organizations can ensure that individuals are accurately identified before proceeding with any further steps in their processes. This not only safeguards against fraudulent activities but also instills trust and confidence among users, reinforcing the integrity of the organization’s operations. As such, the adoption of ID verification is imperative for firms seeking to uphold stringent security standards and protect the confidentiality of sensitive data.

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