With an increasing number of data breaches striking companies and governments on a regular basis, identity verification is quickly becoming vital. Additionally, the development of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations has intensified the growth and development of identity verification methods, especially in the e-commerce and financial sectors.
In today’s post, we will review some of the best identity verification methods you may consider.
Two-factor authentication
This is one of the most common identity verification methods. In two-factor authentication, users have to input not only their username and password, but also another form of personal identification, before they gain access to an account. Two-factor authentication is well suited for opening accounts and resetting passwords since the use of a token deters fraudulent activity.
Biometric verification
Biometric verification uses physical properties such as fingerprints, voice, facial features, iris, and retina to verify the identity of an individual. This is a highly convenient method since it does not require users to memorize passwords or answers to questions.
Optical character recognition
Optical character recognition combines the best practices of collecting specific types of documents to verify identity. The technology scans documents, such as passports or drivers’ licenses, to verify that they are legitimate. What is more, the data processed in the verification process is encrypted so it can’t be stolen.
Blockchain
In addition to forming the basis for cryptocurrency, blockchain technology has a significant role to play in identity verification. Individuals can control who can access their personal information through use of a blockchain-based digital ID.
A blockchain-based digital ID allows verification of a user’s identity, and can empower the user to decide which personal data to share. This increases the efficiency of the process while at the same time reducing the risk of fraud.
Artificial intelligence
Artificial intelligence and deep learning add another layer to the identity verification options. It can compile data at speeds unattainable by humans. It therefore speeds up the identity verification method. Additionally, this technology addresses biometric challenges related to makeup, aging, and facial hair.
Final word
In this post, we have discussed some of the top identity verification methods you can use to combat fraud. If your business is looking for an effective identity verification method, go for one based on modern technology such as these top methods.
