Ensuring the accuracy of customer identities is critical for maintaining the security of a business. A surge in data breaches in Indonesia, with a 143% increase in the first half of 2022 (according to katadata.co.id), highlights the urgency for businesses to adopt proper identity verification measures. In this article, we explore the fundamentals of identity verification – its definition, significance and availability – to help businesses fortify their security posture.
Definition – What is identity verification?
Identity verification, as defined by NIST, is the act of confirming the authenticity of an individual’s claimed identity by comparing their credentials with those previously established and linked to their identity. This can include checking identification documents or using biometrics. Its purpose is to authenticate an individual’s identity and grant them access to secure information or resources. Commonly utilized in industries such as finance, healthcare, government, and online services, identity verification helps secure against fraud and ensure confidentiality
Identity Verification Then VS. Now
Identity verification has undergone significant advancements over time. Previously, manual verification of physical documents such as government-issued IDs, passports, and driver’s licenses was the norm. Today, biometric systems have revolutionized identity verification, enabling real-time authentication through the use of biometric data such as fingerprints and facial recognition. With the rise of internet and mobility, remote identity verification has become increasingly crucial and widely adopted. This involves a combination of digital document verification and biometric verification, with V-KYC (Video Know Your Customer) and E-KYC (Electronic Know Your Customer) being the widely used methods in finance and digital businesses.
What is V-KYC and E-KYC?
V-KYC, or video know-your-customer, is a process used by businesses to verify the identity of their customers through a video call. During the video call, the customer is asked to provide identification documents, such as a passport or driver’s license, and to complete a series of identity verification steps, such as live face recognition and liveness detection. The business uses the information provided by the customer to confirm their identity and to ensure compliance with legal and regulatory requirements.
There are three important component or steps in the video kyc process:
- Document verification
- Identity verification
- Liveness detection
Meanwhile, electronic know-your-customer or E-KYC is a process of verifying the identity of an individual to ensure his or her authenticity. This process is carried out by comparing identification documents and biometric information with government-issued databases.
What is the difference between V-KYC and E-KYC?
V-KYC and E-KYC are both methods used by businesses and organizations to verify the identity of their customers. The main difference between these two is that V-KYC involves a live video call between the customer and a representative of the business, during which the customer is asked to provide identification documents and complete a series of identity verification steps. On the other hand, E-KYC is a fully electronic verification process where the customer uploads their identification documents and completes the verification process through an online portal like mobile application to name a few.
Let’s compare the methodology, level of interactivity, and ease of implementation through the following table.
The importance of identity verification process
Identity verification is a key aspect in the digital age, providing a means to confirm individuals’ identities in online interactions through methods like V-KYC and E-KYC. It protects against fraud and safeguards personal information, ensuring it’s shared only with authorized parties. Access to online services such as banking, shopping, and government services requires identity verification. Regulations such as KYC and AML also demand identity verification. Establishing trust in online interactions is crucial and identity verification helps achieve that. In summary, identity verification is vital for securing online interactions, providing access to services, meeting compliance, and building trust in the digital world
Elevate your digital security with identity verification. It plays a crucial role in protecting personal information, enabling access to services, meeting compliance, building trust, and ensuring the safety of financial transactions in the digital world. Don’t risk the security of sensitive information. Learn how our identity verification system can benefit your business by contacting us here.
Accuracy Availability Business Security Customer identities Data breaches Data Protection Fortify Fundamentals IdentityVerification Significance Urgency
Last modified: February 6, 2023