This last decade has seen an explosive boom in the virtual world. From ordering food online to getting a visa for an international destination, everything is done by the tips of the fingers – literally. On one hand, this has created ease for customers and businesses as services can be availed from the comfort of your home and clients can be served without substantial physical assets. But this has also given a rise to online scams that allow fraudsters to use fake or stolen credentials – personal and financial – to avail services from businesses. Hence, the heightened need for identity verification services. Know your Business have developed and adopted systems and processes to ensure transparency and security of the users’ identities. But, it was far from perfect owing to its inherent flaws which led to people with malicious intent to steal the data and have their way with it.
AI has finally caught up with the times in terms of learning and the application of complex data processes in record time. It is ushering today’s world to a whole new era of efficiency and accuracy for online id validation as well as verification.
Identity Validation Vs Identity Verification
Before exploring further, it is best to understand the underlying difference between identity validation and identity verification.
Identity validation means simply connecting the dots between the data provided by a person and the databases. It is a simple assurance for an organization that the data they have received does exist and is not made up. However, identity validation does not make any effort to ensure that the provider of the data is its legitimate possessor.
Identity verification takes up where identity validation leaves. This step ensures that the data and the person behind digital identity verification are actually connected through legal means. Organizations carry out thorough identity verification processes when they need to comply with regulations, such as KYC and AML regimes.
Traditional Online ID Verification
At this point, there is nothing new about these traditional practices except they are outdated and prone to cyber penetration. Here are the rundown of some of the conventional, yet still in use, online id verification practices Kik Username.
Knowledge-Based Authentication was a novel idea three decades ago when users had to give accurate answers to security questions before signing in. It is still in use now, but this system of id verification has been exploited by hackers.
2-Factor Authentication lets users second their attempt of signing in by giving a customized token sent to their cell number as an SMS. This was a widely adopted method thanks to regulatory controls.
Shortcomings Of Traditional Identity Verification Services
It does not matter how sophisticated a security system, there is always kryptonite for that, especially if it is around for a while. Without rigorous revisions and inherent flaws, traditional identity verification services were doomed from day one.
Following are the shortcomings of legacy online ID verification systems:
- Recent large-scale data breaches were enough to worry customers about their data security. With information on social media platforms, the private information ceased to remain private. The dark web is playing a key role in the trade of stolen information.
- In cases when it has some degree of security, it kills the user experience and ease of using services right from the beginning. This is especially true in the case of the 2FA process which has to rely on other players to work properly.
Artificial Intelligence – Improving The Odds
On a large scale, online id verification is not cut out for manual processing. It needs a self-learning, automated process that can filter out false positives in real-time. Artificial Intelligence has matured to the point where it can be at the helm of affairs. Still, in an ideal situation, the hybrid of human intelligence and artificial intelligence is the best we got for swift and reliable digital identity verification.
The key difference lies in the received data by the system. Legacy operators were only able to detect static identifiers both in facial and document verification. AI has stepped up the game by detecting a dynamic range of aspects in the incoming data, such as 3D-depth perception, liveness detection, facial recognition, and OCR data extraction. This is a game-changer for organizations to a wide range of online id verification, such as id card verification solutions.
It takes a fraction of time compared to manual labor and gives reliable results.
Where Artificial Intelligence Shines Through
Artificial Intelligence is leading the way in automated solutions regarding digital identity verification across multiple industries. In fact, 75% of companies are of the view that AI will transform their ways of conducting business in three years.
These are the industries at a glance that are, and will be, using AI extensively for their operations:
Artificial Intelligence helps FIs from a diverse spectrum, from legacy banking establishments to online gaming and cryptocurrency, to run identity verification services with ease. Best KYC and AML practices can save businesses from incurring heavy penalties from regulators.
A cell phone number is much more than a cell phone number these days. To protect what experts call the secondary identity of the users, companies are implementing AI watch towers to onboard consumers after seamless online id verification.
Identity verification is at the center of KYC and AML compliance. With the proliferation of FinTech startups and virtual enterprises, a new chapter in online data privacy has begun. Organizations require AI and ML to detect and rule out false identities from the very beginning.
The Future Of Digital Identity Verification
With all its vulnerabilities, digital identity verification is here to stay and grow exponentially. In the last decade, numerous national programs have been started by the states to provide citizens with a digital ID. This is in line with the adoption of Artificial Intelligence for digital identity verification endeavors to onboard clients safely. AI goes above and beyond the limits of human intelligence to pick subtleties in the data and separate what is real from the rest.