From air terminals to monetary institutions, sectors today are progressing towards advanced digital modules. To stop rising scam rates in such sectors, authenticating a client’s legitimate identity is the key to handling risk. Online identity verification is the procedure of authenticating the client is who they claim to be, through the adoption of computer technology. Let’s dive deeper into the blog to discuss the convergence in online identity verification techniques throughout the years.

Traditional Method of Identity Verification

Earlier, authentication of company accounts or a client was a time-taking procedure. It acquired meeting clients physically at storefronts, manually cross-checking and authenticating documents, or requesting a third party to validate several sorts of documents. The conventional technique of identity document verification is known as Knowledge-based Authentication (KBA) and includes intimate queries being asked from the client to gain permission to an online website. Although it is still adopted as a substitute, it leaves companies with much space for humankind mistake and user privacy concerns, apart from being costly, ineffective, and time-taking.

Development

In 2011, several social networking platforms like Facebook began enabling their clients to log in to platforms and authorize the mobile app to adopt identities of their choice. Therefore, these accounts were solely guarded with passcodes that are greatly exposed and receptive to external threats. Companies realised the demand for having a more user-centric and guard identity verification procedure. Subsequently, online identity verification was introduced to enhanced safety mechanisms by making clients aware of illegitimate people were attempting to log in to their account.

Additionally, businesses globally are now acquired to follow KYC and AML law to fight and combat malicious activities such as identity fraud, money laundering and terrorism financing, etc. Choosing for artificial intelligence-based identity verification assists businesses to follow these laws and serves as an identity fraud protection technique. Online identity verification can be performed through the following techniques:

1.Official identity documents, such as driving license, passports, bank statements, and utility bills.

2. Private and company address

3. Biometric verification, involves iris recognition, facial scans, palm prints, and other biometrics unique to the individual.

4. Authentication of identity document through real-time video KYC.

5. Optical character recognition for companies.

6. Anti-money laundering screening of individual and company.

Another safe technique of online identity document verification involves adopting blockchain technology for information storage, as adopted by Bitcoin. Blockchain technology gives a decentralized website for the storage of intimate personal data. Its cryptographic module makes it almost hard to fight, which shows it to be a possibly revolutionary technology.

The Future of Identity Verification

Due to the rise of technological advancement, most of the interaction that the companies have with their user base is transforming online, which needs online identity verification to be performed remotely. In the present’s online advanced world, e-commerce retailers, smartphone operators, educational centres, monetary institutions, and other company sectors must onboard and validate their clients without physically meeting them. Therefore, this requires to be performed in an easy, safe method and follow with regulatory measures.

NFC is wireless automation that serves as a touchless smart card. It allows data exchange between two approved devices when brought near or touches together with others. NFC technology has assisted in improving the onboarding experience for clients. Keeping in sense the global safety landscape, adopting near-field communication for identity verification gives the following compelling benefits:
1. Correct data extraction

2. The authentication procedure is instantaneous and entirely digitized as chip data is automatically scanned.

3. Near-field communication capture is touchless.

4. It is spoof-proof
 A. Near-field communication is guarded against hacking during communication since it can’t be scanned if devices are more distant than 4 centimetres away.

Conclusion

 Management of client identity information is likely to become even more vital for companies with the ongoing evolution of online identity in the future. Modern technologies such as AI and ML have served in the transformation from conventional techniques of online identity verification like KBR to modern techniques such as know your customer, biometric verification and blockchain technology. To combat illegitimate client from authorizing private data, it only makes sense to advance from physically submitting documents for authentication and move towards more safe and touchless technologies like near-field communication for online identity verification.