Top 5 FAQs About Identity Verification

Society has transformed to promote an increasingly digital lifestyle, opening the doors to new virtual opportunities for customers. ID verification is one of many types of business-to-consumer processes that has recently undergone digitization and automation. Digital ID verification involves a complex process behind the scenes, but with a little information, customers can easily use the technology for their benefit. In this blog, we will answer FAQs to give you more insight into the ID verification world.

What is ID Verification?

ID verification is a way to prove a person’s identity. Nowadays, this can be done electronically. Businesses use the authentication service to compare the identity a person claims to have with the information provided to identify a match. Legitimate documentation for users to provide would include birth certificates, social security cards, a driver’s license, and more. In order to prevent forgery and identity theft schemes, these measures are taken very seriously for the safety of both the customers and the businesses. Financial institutions are especially focused on using the right tools for ID verification, as it is vital they comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

How does ID verification work?

There are multiple different methods of software that can be used for ID verification. Lightico’s ID verification solution uses a completely digital process to confirm a person’s identity. Here’s how it works: Customers use their cell phone cameras to upload a photo of their government-issued ID. With the latest AI technology, the photo and the person’s selfies are matched and verified immediately in real-time.

1. Customer receives a text message with a link to a secure session with a request for photo ID.
2. Customer takes a photo of their ID (drivers license, passport, etc)
3. Customer takes a live selfie to be compared to the ID provided. This will immediately be used to confirm that the person on the phone and the person on the photo ID are the same.
4. Customer ID and photo is matched and verified

What is photo ID verification?

With electronic ID verification, there becomes more of a need to confirm a person’s identity since it eliminates in-person verification. So, photo ID verification is becoming more important. When using photo ID verification, Lightico’s software compares a photo ID to a real-time selfie of the person. This is done with different AI technology and biometrics to identify and authenticate the individual with their unique biological characteristics.

How does ID verification support KYC and AML?

KYC and AML are not interchangeable, but they are closely related. KYC is a big part of AML efforts. AML procedures look for suspicious activity like large cash transactions, unusual spikes in activity, transactions with high-risk businesses, and transactions associated with high-risk locations or people. Therefore, to ensure the compliance of both KYC and AML, ID verification is needed so money, and people’s identities, do not get stolen. Know Your Customer (KYC) verification is the process businesses use to identify customers before providing services, to ensure they are actually who they claim to be. KYC has more recently started to require customers to submit a form of photo ID as a way to eliminate fraudulent transactions. Anti-Money Laundering (AML) is a set of laws, regulations, and procedures that are meant to stop people from illegally obtaining money and using it as a real form of income. These regulations require financial institutions to constantly keep an eye on customers’ transactions and report any suspicious activity. ID verification supports both KYC and AML goals. The verification typically takes place when there are new customers for a bank, credit company, or insurance company. The companies then require a form of ID verification checks and customers must provide documentation that proves they are working for a legitimate purpose, rather than being engaged in money laundering. Once data such as customer name, address, and identity numbers are collected, financial institutions like banks can compare it to government databases. By doing so, more information such as geographic location, line of work, and connections with others can help determine if the individual is likely to engage in any illegal activity.

What are the advantages of digital ID verification?

With an advanced digital ID verification solution, KYC and AML procedures become easier, safer, and more accurate for both customers and businesses. Here are some advantages of Lightico’s solution:

• Instant: Customers can use their cell phone cameras to upload a picture of any photo ID right away and from any location.
• Agent-guided: Agents can help customers complete the verification process while on the phone to eliminate errors or confusion.
• Enhanced security: For additional security, you can use KBA (Knowledge-Based Authentication) and OTP (One Time Password) capabilities.

About Lightico’s ID verification solution

Lightico’s digital ID verification solution adds an extra layer of security, making your business more credible in the eyes of the customers. Here’s how Lightico’s ID solution can impact your business:

• Accelerate ID&V for smooth onboarding
• Prevent fraud
• Enable KYC and AML

Lightico has been working hard to provide users with a fully digital and secure customer journey. Learn more about Lightico’s ID verification capabilities, along with the full platform of eSignatures, eForms, digital payments, and more at Lightico.com.