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As more and more businesses, institutions, and organizations move online, there is an increased need for identity verification. Identity verification is vital in helping businesses know their customers. More importantly, as a security measure to prevent fraud, scamming, and identity theft.
When conducted by a reliable service provider, online identity verification is convenient and fast. However, since this technology is still new, there are some teething issues that customers, businesses, and service providers encounter.
So how does identity verification work? What are the benefits and what do you need to be aware of?
How to Go Through the Online ID Verification and Where It Is Needed
Identity verification is an authentication process to confirm that a person is who they claim to be. It can be done online or offline.
It can be carried out in different scenarios. For example, at a medical institution to obtain consent, when accessing government services such as filing tax and unemployment benefits, signing a lease agreement, making purchases online, for online banking services, etc.
Businesses usually hire third-party online identity verification services to oversee the process for them. In some cases, customers are given the leeway to determine which service to use, while in others, the business or government institution requires that the verification process is done through a given service such as ID.me.
Identity verification service providers use different types of methods. The most commonly used identification methods are:
- Two-step verification
- Knowledge-based or self-identity question
- Biometric verification
- Photo of government-issued ID, e.g., ID card, driver’s license, social security card, and passport
- Electronic signatures
- Credit bureau verification
Common Identity Verification Issues
Here are the things you need to be aware of when using identity verification services:
Identity Verification Processes are Far from Perfect
Although identity verification technology has advanced in leaps and bounds in the last decade, a lot is yet to be figured out. For instance, the IDme reviews showcase the difficulty passing verifications, account issues, and users having their accounts blocked for suspected fraudulent activity.
Most verification services utilize AI technology, which may not equate to the human eye and mind. That’s to say if an identity verification process requires you to provide a photo of your ID, aspects such as the lighting, background of the photo, and the quality of the image can get in the way. While a human can easily look at the ID card and verify the details, the AI will render the card unusable. As such, people who are not tech-savvy find it difficult to use ID verification services.
Businesses and institutions struggle to find a balance between security and customer service. For instance, if they ask for too much information during the verification process, most people find it cumbersome or uncomfortable to provide such information. Therefore, they opt out of the process entirely. On the other hand, if the verification process is too lenient, it creates loopholes for fraudsters.
They are Prone to Security Breach
The AI identification algorithm is prone to cyberattacks, e.g., identity spoofing, phishing, and hacking. Hackers are keen to identify vulnerabilities in the identification process and devices to access sensitive information. There have been numerous complaints on various consumer review websites such as Pissedconsumer.com about ID hacks on different identity verification services.
Privacy Issues
Some cyber security experts have expressed concern about the lack of regulation and legislation around identity verification services. It is indisputable that the service providers have unprecedented access to sensitive information, yet they face the risk of being hacked.
There are also concerns about the services sharing customers’ personal information with third parties. Or employees breaking their code of conduct and taking advantage of their access to the information to commit fraud.
You May Be a Victim of Identity Theft Already
When using an identity verification service, you may find out that someone else is already using your information. In most cases, the identity verification service is not the point of breach, especially if you have never used it before. The scammer may have accessed your personal information through other channels but used it on the identity verification service to verify themselves.
If you find out you are a victim of identity theft, report to the police, tighten security around your bank accounts and put an alert on your debit and credit cards.
Online identity verification has become compulsory to be able to access certain services digitally. While the system is not perfect yet, it is convenient and ensures that someone else does not transact on your behalf without your authorization.
To optimize your identity protection, check online reviews of the identity verification service you will be using to establish if it is reliable. If you are too concerned about providing your personal information online, contact the business or institution to request offline identity verification.
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