Identity Checks: A Complete Guide to Identity Background Checks

Identity Checks

Online identity fraud and scams have led businesses to a new era of fraud protection. Most entities have moved a step further towards fraud prevention. Identity checks are a prime facet of such fraud prevention. Identity and background checks enable every business with an online presence to verify their users digitally. Identity verifications in businesses have never been simpler and require less time than ever before. They are multi-faceted and can be implemented according to a business’s needs.

There are a number of verification checks available through different Know Your Customer (KYC) service providers. Each gives its own degree of protection to businesses from any potential fraud or scam.

ID Verification

Identity verification of a person involves authenticating a person’s identity against his/her documents. It enables a company to ascertain their customer’s name against the identification documents they have provided. This entails template matching of the ID documents of an individual.

Document Verification

To verify a person’s documents the company will ask them to scan one or more of their documents in order to determine whether the information provided by them is legitimate. The verification software establishes information like the accuracy of the document, the unique identification codes embedded in the document, the age, gender, nationality, address and other similar details from the document(s) provided by a user.

Face Verification

Facial verification checks are performed through a facial recognition software. The software assesses a person’s features in real time. With the help of liveness detection and 3D depth perception analysis, the software can check for any spoof attacks and possible scams. It also reduces the risk of photo shopped images to a great extent, allowing businesses to implement robust fraud protection. It requires no new hardware to implement and hence is more affordable than other biometric verifications like fingerprint scanners.

AML Background Checks

AML or anti-money laundering checks are implemented to check if a person is present on any watch lists issued by global regulatory authorities. They help banks or investment firms to avoid their firms to be used for any illicit money laundering activities. Any individual present on any such list is flagged by the AML check. Companies performing such checks keep a vast databank of such lists and update them accordingly as well, to allow for any changes made to the lists.

Two Factor Authentication

Two-factor authentication is a simple method of verification wherein a user verifies his/her credentials through their phone number. A verification code is sent to their registered phone number. Once the user enters their code their number is verified and are then allowed access to services.

There are numerous ways to perform identity checks that businesses can use to verify their users as well as employees. Such identity background checks provide sufficient fraud protection to companies and can go a long way to ascertain their credibility. They are best implemented in a combination according to a company’s needs as no one verification method can fully establish a user’s veracity.

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