"ID Verification: What is it and Why is it Important?"

Identity verification, or "ID verification" for short, is the process of ensuring that an individual is who they claim to be. It's a crucial procedure in certain industries where entrepreneurs are required to collect personal information from their customers. However, implementing ID verification requires following various steps and complying with applicable legislative provisions. In this article, we'll dive deeper into what ID verification is, why it's important, and how it works.

In real life, identity verification is often carried out by public institutions and credit institutions. It enables customers to access specific services or information. But what about when the requesting organization is 100% online? How and why should ID verification be performed?

Why Verify Your Customers' Identity?

Utilizing digital tools to verify customers' identities offers numerous benefits, including:Eliminating the risk of cyberattacks
Improving trust between consumers and service providers
Effectively combating phishing attempts
Dispelling doubts about the authenticity of a document
Streamlining customer data management (no more unnecessary paperwork)
Complying with existing regulations

In short, verifying your customers' identities through appropriate digital tools is in your best interest.

Which Industries Require ID Verification Services?

Several industries are required to utilize ID verification, including real estate, forex trading, e-learning, and insurance. Companies operating in cyberspace, crowdfunding, and cryptocurrency are also affected by the challenges of digital identity verification. These industries need to adopt effective and proven digital solutions to meet regulatory requirements.

How Does ID Verification Work?

ID verification can be done using biometrics (facial recognition) or videoconferencing tools like Zoom. It can also be based on the person's history (e.g., a credit report) or digitized official documents. This kind of activity can be time-consuming and repetitive, which is why many experts in the field have developed identity verification systems that can automate the task without harming the user experience.

What Are the Steps for Verifying Someone's Identity Online?

There are approximately five steps involved in verifying a person's digital identity. It begins with the customer visiting the company's website and agreeing to allow the platform to use their camera and microphone. Then, they must present both sides of their ID document, which will be checked by advanced ID verification technology. Later, the customer is required to show their face and smile in front of their camera. Once their identity is verified, all their personal information, including their email address and phone number, will be recorded in the company's database.

In summary, identity verification is an essential process for various industries, and companies need to adopt effective digital solutions to ensure compliance with regulations and protect their customers from potential fraud or cyberattacks.

Source: lebigdata