Trulioo, the international identity verification firm, notes that ID verification has three primary use cases: “achieving compliance requirements, reducing fraud and building trust and safety.”
Trulioo explains in a blog post that depending on your business and where you operate, you might “prioritize a particular use case.” According to the firm, effective identity verification processes for one use case “can be helpful for other use cases as well.”
As noted by Trulioo, compliance requirements ensure businesses have processes “to protect against financial crime, like money laundering or terrorist financing.” And in many instances, ensuring compliance “means verifying your customers.”
Trulioo also mentions that digital identity verification confirms that the identity information used to “create each account connects to an actual person –– not a fake identity.” The information can then be “checked against reliable and trusted data sources to let your business know who your customers really are, helping you meet compliance requirements and avoid regulatory fines.”
After you’ve verified the user information provided “connects to a real identity, you need to verify that the customer is who they say they are,” the company writes in a blog post.
There are “quite a few authentication methods used to do this –– and new approaches are coming online all the time” –– but some we might have already experienced are as follows:
- Verifying uploaded ID documents, like a driver’s license or birth certificate
- Multi-factor authentication through one-time passwords
- Biometric authentication, like thumbprint, retina or facial recognition
- Verification and authentication solutions help prevent fraud by flagging potential fraudsters before any damage is done.
As noted by Trulioo, “out-of-date information or mismatches in data can quickly reveal issues that require closer examination.” By cross-referencing hundreds of data points, sources and fraud signals, you “create a higher barrier for a fraudster to overcome,” the company added.
Trulioo also noted:
“Depending on your risk mitigation strategy, you can help prevent fraud even further by using a layered approach to identity verification. For example, requiring proof of possession of a mobile device associated with an account holder makes it harder for the fraudster to take over an account.”
The company added that the ability for digital identity verification to deliver safety, security and trust is “a critical component of the new world economy –– and it’s changing how we do business and interact with one another – both online and offline.”
Trulioo also mentioned that we can “trust strangers on various marketplaces or person-to-person services thanks to digital identity verification.” Marketplaces and services that “require identity verification have taken steps to help ensure the trust and safety of all participants,” the firm explained.
They added that this new economy “offers new opportunities and challenges.” With identity verification, businesses can “navigate those challenges, lower costs and risks, expand into new markets and build trust with their customers and communities.”
Trulioo also noted
“Whichever your use case, accurately and efficiently verifying identity is essential for your organization. Protecting your business — and your customers — is fundamental to smooth operations and maintaining your brand reputation.”