Digital identity verification is a process used by businesses to confirm their customers’ ID is genuine. In recent times, the online fraud market has reached enormous heights, with 95% of enterprises and 90% of small businesses being affected and global e-commerce losses alone worth $48 billion in 2022.
Combining such statistics with the ever-expanding nature of the online world means that businesses not only need an accurate identity verification solution to protect their users, but also to continue competing within their marketplace.
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Digital identity verification is a process that proves the identity of someone without the need for physical documents or face-to-face verification. Working on two levels, verification confirms that a person exists, and that the information they’ve provided to prove their existence is genuine.
The digital revolution has made online identities an essential part of modern living, and the benefits of identity verification are clear. Consumers are increasingly utilising digital services to shop, and manage their lives through the use of apps. A digital identity enables users to transfer money between bank accounts, pay bills, and buy goods.
In addition to merely keeping customers protected, any business that processes payments is subject to legal obligations. A failure to comply with such regulations can lead to fines, loss of reputation, and even a court order.
All companies must perform Know Your Customer (KYC) checks, alongside any laws relating specifically to the industry they operate in. Global companies must also comply with local legislation, which can differ from one country to another.
For example, a firm handling credit card information is subject to regulation from the PCI Security Standards Council, such as the Payment Card Data Security Standard (PCI DSS).
A digital identity is an online representation of an individual, including various examples of proof. Its purpose is to allow a person to conduct their affairs through digital methods, be it buying goods, going to work, or registering for a service.
Without a digital identity, businesses and authorities would not be able to verify their customers and users, and so any interaction that required an exchange of personal information would not be viable. Research shows that 91% of businesses recognise the value of increasing their spending on such verification, and such identities are already a vital part of daily life for both businesses and people.
A company may employ a variety of digital identity verification methods to verify their customers’ identities, from logging banking and address details to legal identity documents.
The quality of such an identity-checking process has actually become a potential point of difference in a diverse and competitive business landscape. Ensuring foolproof and straightforward identity checks not only protects both parties from a legal perspective but it can also encourage customer retention and service referrals.
With cybercrime on the rise and a whole criminal enterprise operating in digital terms alone, excellent practice in this area can boost business reputation and even help customer acquisition and provide a better user experience.
When it comes to preventing identity fraud or identity theft, the most comprehensive verification solutions are found in dedicated software. Interpass, our own full-service identity program, delivers end-to-end verification, gathering data before analysing it against your pre-set criteria, and utilising different sources for maximum security.
Interpass begins the verification process by checking a user’s date of birth against multiple sources, including banking, telephone numbers, and electoral data. An address check is verified against the likes of credit and court data. Furthermore, personal details are compared to the deceased register, SIRA, and CIFA – two of the UK’s leading national fraud databases.
If, for example, your business needs to verify whether a credit card actually belongs to a customer, Interpass looks for documented proof that the card, customer, and customer’s given address are all legitimate.
The platform can further be utilised by companies needing to confirm the credit worthiness of their customers, such as those working in the financial sector. A business is able to outline its own lending criteria within the software, and then run an affordability check against a customer.
That company is then able to confirm whether a user can feasibly afford to make a purchase or take out a loan, ensuring that they’re operating within the responsible-lending terms outlined by the Financial Conduct Authority (FCA). And in other fields of business, digital identity verification solutions can ensure a company follows relevant compliance requirements within the terms laid out by regulatory authorities.
A robust digital identity verification process is no longer a nice-to-have for businesses in the modern era – it’s an essential component, and the number of global digital checks is predicted to grow to 70 billion in 2024.
Our dedicated verification service is a premium response in guarding against the risk of identity fraud, ensuring compliance, and inspiring consumer confidence in your services.
Discover the difference Interpass can make to your own organisation through our insights, or book a free demo with our friendly team of experts today.