What Does the Future of ID Verification Look Like?

ID verification has gone through multiple stages throughout its existence, from manual identity checks to high-tech automated processes. In this blog post, we’ll explore how ID verification arrived at where it is today, and where it may be going in the future.

Before Modern ID Verification

It used to be a long, complicated process to complete a transaction. You had to make your way over to a physical branch, fill out endless paperwork, and wait for all parties to complete everything correctly. You then had to wait for the paperwork to be sorted and processed, and even wait for others to be chased down to complete missing parts. And, even if you did not have to go somewhere in-person, there was endless printing, mailing, or faxing involved. Nowadays, when any process involves this much effort, customers tend to give up and take their business elsewhere. If something is not convenient for customers, it is no longer desirable. So, businesses must go digital to keep up with the continuous growth and changing needs of customers. Once a business undergoes a digital transformation, there are many circumstances to consider along the way. One of the most important aspects to think about is the online safety of customers. Yes, going digital eases processes, tremendously decreases turnaround times, and does so much more -- but none of this could be done without a secure platform. With ID verification, the stress of tedious paperwork and long processes gets replaced with safe, secure online transactions.

Why Is ID Verification Necessary?

To the typical customer, having to provide a form of ID may seem unnecessary. However, what people tend to not realize is that there are more fraud cases out there than you think. In fact, COVID-19 has tremendously increased the number of virtual fraud cases. Fraudsters are fully aware that most of the world is working from home and completing more everyday activities online, rather than in person. So, they have more ways to trick people into giving up personal information and stealing money. According to FBI.gov, as of just one month ago, in May 2020, the FBI’s Internet Crime Complaint Center (IC3) had received 320,000 complaints, which is about the same amount of complaints received in 2019 (about 400,000). In order to ensure the safety of both the customer and the business, more and more are starting to require some sort of photo identification after an eSignature. Especially now, the need for ID verification becomes stronger and stronger. The future of ID verification is evolving this very second and will continue to do so.

Advanced Features of Modern ID Verification

When integrating electronic ID verification into your business, you must do so in a way that is beneficial and convenient for customers. Everything is all about the customer experience, so even if something is new, it will not be pursued by customers if it is complicated or difficult to understand. If this is done correctly, ID verification will thrive. Some futuristic aspects of electronic ID verification include:

• Real-time: Businesses can view their customers’ personal information immediately, rather than waiting for files to be sent back and forth over the course of a few days or even weeks. With Lightico, customers and agents can communicate over a live session via a mobile platform. Not only does this accelerate any process, but it also ensures a company has up-to-date information.
• Secure: Lightico’s solutions exceed the standard legal requirements such as the ESIGN Act and Uniform Electronic Transactions Act. All activities in the session are time-stamped with a complete audit trail to eliminate legal risks.
• Mobile-friendly: Not only can customers fill out eForms and provide eSignatures from their mobile device, but they can also prove their identity from their cell phones. Here’s how Lightico’s electronic ID verification solution works:

1. Customer receives a text message with a link to a secure session that contains a request for photo ID.
2. Customer takes a photo of their ID (drivers license, passport, etc)
3. Customer quickly takes live selfie which is instantly compared to the ID provided. This will 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

How ID Verification Transforms Your Business

Behind the scenes, ID verification is a very complicated but important process. The terms Know Your Customer (KYC) and Anti-Money Laundering (AML) are thrown around very often and are vital to consider. KYC verification is ensuring that the current customer is who he or she claims to be and ensuring they are not engaging in any illegal activity. AML are the rules and regulations that financial institutions must follow to prevent illegal activities. KYC plays an important role in a business’s compliance with AML. Lightico’s solution allows financial institutions to complete KYC and ID verification procedures instantly, effortlessly, and in real-time. Some ways Lightico’s ID verification solution impacts businesses:

• Smoother onboarding: With remote onboarding becoming more prominent today, ID verification is necessary to welcome new hires into a business. In order to securely give access to company information, logins, and files, ensure the employee’s identity by having them quickly upload a selfie or form of photo ID.
• Prevent fraud: To protect both the organization and its customers from fraud and identity theft, Lightico allows for effortless ID collection and verification capabilities.

The Bottom Line

So what does the future of ID verification really look like? As technology continues to expand and as more businesses digitize, ID verification will become even more advanced. It will have a stronger presence in everyday transactions, more forms of authentication, and advanced forms of biometric identification (ie. facial recognition). Alongside this futuristic advancement will also be the streamlined eSignature and eForm process. Learn more about Lightico’s ID verification capabilities, along with the full platform of eSignatures, digital payments, eForms and more at Lightico.com.