Identity is the attribute of identical, the exact correspondence of one thing with another when compared. It is the set of unique traits and characteristics associated with a unique and irreplaceable individual. This turns essential when we talk about people and especially within the online environment, where identity theft is a more common phenomenon than we realize.
The identity check is an essential requirement in most processes and procedures, both online and offline, and in all kinds of situations. From opening a bank account to completing tax procedures electronically.
In banking (and in many industries), the ID verification process is known as the KYC (Know Your Customer) process.
# How to check an identity? KYC ID verification
An ID check ensures that there is a real person behind a process and proves that they are who they claim to be. This prevents anyone from carrying out a process in apps and online platforms on other people’s behalf without authorization, creating false identities, or committing fraud.
There are several methods and systems of carrying out offline and online ID check services. This means the ID verification process can be carried out in different ways depending on the channel and the way the method is used.
For the traditional face-to-face process, an individual must present him or herself personally and physically at the company’s location (store, branch, commercial office, and so on), institution (tax agency, employment service…), or organization.
Once there, they need to hand over their identity document to an employee or agent (passport, driver's license, or equivalent) for them to verify that the ID picture (in most cases visually) matches the person who is handling the document.
If according to the agent both match with each other, the identity check is successful. To complete the process, the agent may make a copy of the ID, make the individual fill a document, and make all the control procedures the agent or the company deem necessary to verify their identity.
If the verification process is completed successfully, the identified user is finally ready to carry on with their arrangements.
Online, the process had to be adapted since there were some digital challenges the digital identity verification solutions had to overcome.
Opposite to offline, in the online world, there are no physical places to go to. Neither some agents can physically verify user's ID to check its soundness.
Thankfully, nowadays most online ID verification solutions can safely and accurately carry out global verification and identity checks online for users and companies all around the world, with even greater legitimacy than the traditional process.
# What is Digital Identity verification? How is an online ID check done?
Over the years, different types of online identity verification APIs have been developed.
However, it is important to understand that not all online identity verification providers and solutions comply with the standards and qualifications needed by law for most procedures (especially financial sector operations) to guarantee their legitimacy, safety, and trust.
One of the methods that do not comply with the appropriate security standards to verify people’s identity online is the use of images and selfies. This is a process that is usually used to identify individuals for low-risk operations, as it is unreliable and uncertain.
In fact, ETSI has standardized identity proofing by recognizing video identification as the only legitimate online global verification identity process.
In online banking and all financial companies, the online customer identification process (or KYC) must comply with strict regulations to ensure their legitimacy and guarantee your company’s and your customers’ anti-fraud safety.
The KYC process works by verifying people’s identities online. This means doing it remotely and digitally. Therefore, it is in the KYC process where guaranteeing a secure and effective customer identity proof takes the greater role, being QES Multi the only digital and fully remote method that complies with all required legal regulations.
QES Multi, based on Video ID verification and qualified electronic signature, is the most advanced remote identity verification software and digital customer onboarding. Powered by artificial intelligence and machine learning, this online identity verification software solution ensures the security of the KYC process even more than the traditional face-to-face method, as it is supported by a digital certificate to verify identity that unequivocally links the user to the document or process they accept. In addition, the process is done automatically and in seconds through a seamless and fast process, while meeting all legal requirements imposed by regulators for identity verification.
# How does the process that verify the ID work for an online ID check?
- The customer visits the company, organization, or institution’s website, app, or platform.
- The customer agrees on the use of his or her device camera and microphone to verify their identity online.
- He or she is asked to show the ID document on both sides. VideoID technology automatically analyses its authenticity and parity with the user.
- Later, the user shows his face and smiles at the camera.
- If necessary, a team of qualified agents validates the video in a separate process.
- The user’s identity has been verified and the user’s credentials serve as proof that the user is who they say they are. Among these credentials are the user’s face biometric analysis in the video taken with their ID, their ID information, and their email address and phone number.
- The user is now registered and can start using the company’s products and services.
Electronic signature and face authentication methods are also digital identity verification services and are used in a wide range of processes and operations. Both are based on streaming video identification, the most secure and reliable technique for digitally verifying an identity.
# The legal standards for the online ID verification services
AML5 (or 5AMLD, Fifth Anti-Money Laundering Directive) and eIDAS (electronic IDentification, Authentication, and trust Services) are the regulations that set the standards for the uses of online ID verification.
5AMLD responds to the need to fight fraud and identity forgery, money laundering, and terrorist financing. eIDAS regulates everything related to electronic signatures, trust services, and electronic transactions.
These European regulations are strict and comprehensive, providing ID check online processes that comply with them, guaranteed security and reliability support.
They are the baseline for the international regulatory framework for remote online digital identity verification services worldwide.
# When and where is online ID verification mandatory?
The ID check online process is mandatory to ensure users’ identities, and provide the highest security and legal support in the following processes:
- Banking and finance: Bank account opening, banking, and financial procedures of any kind or online sales and purchases.
- Telecommunications and insurance industries: Procurement of products and services as well as making online operations.
- Apps and online platforms: log-in process at a web or app, two-factor authentication, access to facilities and buildings, hotel check-in, customer registrations, and so on.
- Government and public administration: To renew or issue electronic certificates, to renew identity documents, in identification processes to create credentials in electronic government sites, and medical apps for electronic prescriptions, among other things.
# Signicat, online ID verification API services partner
Signicat, offers comprehensive identity verification services:
- VideoID: unique real-time video identification solution based on artificial intelligence and machine learning. AML5 and eIDAS compliant and legally equivalent to face-to-face identification.
- Electronic Signature API: comprehensive solutions of simple, advanced, and qualified electronic signatures for all types of documents, contracts, and any digital needs that require users’ acceptance.
Signicat’s identity verification system offers both computer and mobile identity verification with the aim of simplifying the process of verification of identity for businesses and customers.