Confidential Identity Verification

Identity verification is an essential process for any business. It helps prevent fraud and mitigate money laundering activities by ensuring that the person accessing a company’s services is actually who they claim to be.


Several methods exist for verification, including one-time password code (OTP), photo ID check, liveness detection, and data cross-checking. This article will discuss the benefits and drawbacks of these techniques, as well as how to choose the right method for your business needs.


There is no organization, network, server, app, website or device in the world that doesn’t require some level of authentication to ensure the people who are using it are actually who they say they are. With the number of data breaches, phishing attempts and scams out there, it’s more important than ever for businesses to have an efficient, dependable identity verification system in place.

The right solution will be one that balances the need for security with the desire to offer a great customer experience. That is why it’s important to consider your unique business needs, your customer demographic, and the fraud risks you are likely to face.

Authentication is the process of verifying an individual’s identity, typically by comparing credentials (something you know, something you have, something you are) against a trusted source. This can include a variety of techniques, from digitally verifying government IDs and PII against official databases to matching a selfie against a photo on file.

With the digitisation of healthcare and rise in telemedicine, the ability to quickly and securely verify an individual’s identity is now essential for patient safety and compliance. A good identity verification system can be the difference between a patient having their medical history stolen or being able to access healthcare services in an emergency. It is also vital for complying with KYC and AML regulations in the financial industry.


KBA, or knowledge-based authentication, requires a user to answer questions about themselves. These questions are based on information that only the true account owner would know the answers to, making it difficult for cybercriminals to access accounts or systems. KBA can be static or dynamic, and it is typically used in conjunction with other types of security measures to protect against fraud.

Static KBA consists of pre-determined questions and answers that are easy for most people to remember, such as the name of their first pet, what street they grew up on, or what was their high school mascot. Dynamic KBA is a more secure method that uses real-time data to generate questions, which makes it challenging for fraudsters to guess or discover answers through research. It can be paired with other verification methods, such as possession-based document validation and liveness detection to add an additional layer of security that increases both the likelihood of an online transaction being approved and reduces the risk of fraud and chargebacks.

Despite the increased sophistication of fraudsters, many businesses still use KBA as an identity verification tool. However, the growing number of data breaches has made KBA less effective — because the answers to most questions are easy to find by visiting a potential victim’s social media profiles. Fortunately, new technologies like facial biometrics and behavioral analytics are poised to replace outdated KBA solutions and improve the level of security provided by digital verification tools.

Online Verification

There are multiple methods used for online verification, some of which leverage biometric data and facial recognition. For example, Udentify can verify a person’s identity in as little as 13 seconds by using a smartphone camera to scan an ID document and the person’s face, which then matches in real time. The software also includes liveness detection to ensure that a selfie is not spoofed.

A common use case for identity verification is to prevent credit card fraud. In addition, it can help limit synthetic identity fraud, unemployment fraud and money laundering. It can also be a key tool for businesses to comply with regulations like KYC and AML.

When choosing an online verification provider, you need to ensure that they have the right mix of technology and a user-friendly experience. For instance, the software should be scalable and easily integrated into your existing system. The service should also have a good reputation in the industry and adhere to KYC and AML regulations, as this will mitigate risk for your business.

As data breaches and scams become more commonplace, it is essential to have a robust verification process in place to reduce the risks associated with fraudulent transactions. This will protect your customers and improve the overall customer experience. Moreover, it will allow you to avoid the costly fines and penalties that can be imposed by regulators for non-compliance.

Database Verification

For businesses dealing with confidential data, having as much precise information as possible in your databases is very important. This is why database verification exists – to ensure that the information you store in a database is sensible, reasonable and allowable.

Robust authentication procedures help mitigate fraud by reducing the number of account takeovers and identity theft cases. They also contribute to a streamlined customer experience, by allowing users to access accounts and carry out transactions with ease whilst maintaining security.

Authentication processes also help to reduce business costs by limiting the need for costly human resources to spend time chasing up fraudulent activity. These measures can also aid in compliance with KYC and AML regulations.

The verification process can be automated using a database-based system, or by examining the evidence submitted by the user to confirm their claims. Generally, the higher the level of assurance, the more reliable the verification process is. The Fair Evidence designation can include a photograph or biometrics, proof of address (such as a utility bill), and verification through knowledge-based questions about the person. The Superior Evidence designation requires additional checks during the issuing of the evidence.

Another method of database verification is by cross-referencing the provided data with a public or private database of records. This allows the company to determine if the person or entity has connections to known criminal organisations.