Identity Verification: The rise of online fraud has made it crucial to ensure that the person claiming to be someone is actually that person. In short, this involves validating the person’s identity via information, biometrics, and other mechanisms.
Unfortunately, the old identity verification mechanisms no longer work, especially in the digital era, as fraudsters have found sophisticated means of generating false IDs. These are later used for claiming health insurance, money laundering, other financial crimes, and terrorist funding.
According to a report, 33% of Americans have become identity theft victims, which exceeds double the global average. It also mentioned that 51,629 people became victims of ID theft in 2021. The rise of such cases resulted in measures that reduced or eliminated the problem and introduced new-age methods, which have become trends of this year.
Also Read | Digital Identity Ultimate Guide: Its Need, Uses & Verification Methods
What is Identity Verification?
Although we have uncovered the definition of identity verification earlier, we would like to elaborate on it a bit more. Verification of the Identity is often involved in account opening, app accessing, unlocking premises, and many other purposes.
ID verification ensures that the person receiving access to the account/premise or registering themselves is the correct person. Nowadays, banks and financial institutions take tremendous precautions, especially during the Know Your Customer (KYC) state, to ensure that they don’t onboard anyone on a watchlist and that the correct person receives access. The same outlook is for corporates during the employee hiring process.
3 Identity Verification Trends to Look Out for In 2024
Liveness Detection All the Way
The rise of deepfakes, especially during the user onboarding process, became a serious concern and required immediate action. As a result, liveness detection came into place. Earlier, customers used to onboard a video or picture by making a gesture; however, deep fakes made it significantly challenging to detect fake uploads from real ones.
Liveness detection technology resolved this problem. Active liveness primarily requires a user to make gestures specified during the checks. The alternative, passive liveness, matched the person’s biometrics with the ones on the document in a government database.
As a result, both methods provided an extra layer of security; however, passive liveness made the experience exponentially more convenient than its counterpart. The method also helped to separate synthetic identities merged slightly with real identities and keep a user’s digital identity safe.
Standardization of AI and Machine Learning
The adoption of AI has become prominent across industries; however, its demand is growing across domains requiring digital identity verification, such as BFSI, travel & tourism, and many others. The growing demand is because of the numerous advantages that AI and machine learning provide to such organizations.
AI helps to comply with the anti-money laundering (AML) norms and even prepares against possible fraud by curating identity-driven information. AI-powered solutions keep upgrading based on historical data and fraud patterns.
For example, Biocube’s BioKYC is a solution built specifically for stakeholders that continuously require ID validation. It can integrate with an existing solution and incorporate mechanisms to detect fake or real identities trying to access accounts with location and timestamps. Moreover, the system can even prevent logs from unusual places.
Integration of Biometrics
Biometrics have become a new-age method of verifying identity. Today, one can verify their mobile fingerprint with their biometric fingerprint on a government database site like UIDAI. Doing so streamlines the ID validation process and even helps to enhance the account opening speed.
Simultaneously, it ensures that the correct person can access the account, as forging biometrics is difficult and costly. Moreover, if a person validates their identity using contactless biometrics, it becomes even more challenging for fraudsters to replicate the identity.
Biocube enhances security by encrypting biometrics and using a distributed data architecture (DDA). Therefore, the information needs to be more readable and inaccessible.
Additionally, multifactor biometric validation with random checks during access makes businesses even more secure.
Conclusion
Identity verification has become a crucial aspect of global organizations for many reasons. Primarily, it helps them enhance security by preventing ID theft, which could result in data theft and financial losses.
Today, new-age identity validation mechanisms have made the user registration journey faster. For example, contactless biometrics can be incorporated to match an individual’s unique characteristics with stored biometrics.
Also, the incorporation of AI, machine learning, and liveness detection is significantly impacting organizations in multiple industries. These technologies enable fraud detection and prevention and help enterprises prepare for futuristic scenarios using historical data and pattern analysis.
Biocube’s contactless biometrics identity solutions, like BioKYC and TruNtrance, cater to the needs of global organizations and ensure that they follow compliance end-to-end. Connect with us today to learn the ways we scale up your operations while catering to the next-gen identity verification technology needs.
