Identity verification is present in many processes of our daily lives. We are registered from the moment we are born to establish our identity on paper.
These documents end up being used in the course of our lives to prove nationality, property, criminal records, travel permits, access to banking systems, telephone services, loans, or even when entering the NFT and cryptocurrency world.
Due to the daily nature of these processes and the large number of services we can access thanks to our ID verification, as well as the need for immediacy of our time, these processes must be fast, frictionless, and safe, above all. We must guarantee an excellent service for the end user.
However, in the digital age in which we live, it’s key to have allies that enable us to identify who our clients are and thus ensure the safety of our business and their interests. What about you? Do you already have an ally?
The evolution of ID verification
First, let's review the general aspects of identity verification.
A person's ID can be established through many different aspects, such as gestures, language, nationality, clothing, musical taste, and more.
But also, in more formal aspects, by their ID, signature, nationality, gender, fingerprints, biometric data, social network accounts, credit history, and any other unique characteristic of that human being.
In addition, it’s worth noting that the process of verifying these more formal aspects has evolved over the years due to the advancement of technology.
Initially, the ID verification process depended on a person manually checking that the document or picture was legal and that the information printed on it matched.
This process was done many times without much preparation or tools for it. In addition, the same human factor in this tedious process turned errors and omissions into something common.
The fake IDs
Due to this same lack of rigor, false identifications and fraud attempts have been everywhere. Because of it, this phenomenon has been represented in multiple Hollywood movies, as is the case of "Catch me if you can."
This movie, based on actual events, tells a story of a 16-year-old con artist represented by Leonardo DiCaprio. This young man poses as an airline pilot, a surgeon, and even a lawyer.
Then, he manages to steal millions of dollars and even the heart of a woman who almost became his wife. All of it with a false ID and the use of documents that were not adequately validated.
Because of this true story, governments, banks, and private companies have focused on strengthening the identity verification process. Well, who wouldn't invest in security after losing millions of dollars?
By going hand in hand with technological advances, the verification process becomes more and more solid, thus avoiding fraud even before criminals attempt it. In addition, this helps increase the speed with which the process is completed.
Immediately after, your ID is validated
With this in mind, data collection and identity verification no longer need to happen in person. Instead, processes can be done digitally, remotely, and in minutes.
As we mentioned, identity verification can be done in minutes with Artificial Intelligence (AI). In addition, the most advanced systems can validate an ID, identify if the document was forged, and compare it with government information or tracking lists.
With these tools, companies try to reduce risks by directly attacking fraud and ensuring the business and customers' safety.
ID verification in the financial and cryptocurrency sector
The financial sector is one of the most exciting industries in continuing to strengthen ID verification systems. In this line of business, identity verification is vital to prevent the entry of capital from money laundering or any act of corruption in the economy.
So, before opening the doors of their services, institutions in the financial sector always demand to identify the person.
The cryptocurrency world is another place where identity verification is present. A recent survey revealed that the number of users who claim to have verified their identity through KYC increased from 85% to 93% in the crypto ecosystem.
It’s worth noting that Know Your Customer (KYC) is the practice carried out by companies to verify their customers’ IDs in compliance with legal requirements and current regulations and standards.
A reality that we live in today
In this way, all the players involved in the traditional or alternative financial sector are interested in an agile, effective, and secure identity verification system.
Especially when it’s known that online fraud is a present reality and that it can occur in any aspect of the business – going from impersonation in social networks or even financial fraud.
According to data from the National Commission for the Protection and Defense of Financial Services Users (Condusef), more than 2 million cyber frauds were reported in Mexico in 2021.
This is also the case in many countries in LATAM. A LexisNexis report showed that at the end of 2021, automated bot attacks increased 32% annually worldwide, with Latin America in the lead, with a growth of 455%.
So, online fraud is a latent risk, and companies involved in processes where identity verification is vital must have reliable systems that provide security to their business and customers.
“People trust good data treatment, so companies have a responsibility to guarantee this,” said an IBM expert in cybersecurity.
Data verification and security
As we stated, it’s vital that ID verification can be done quickly, in the same way, that end users expect that the information and data used to achieve this verification will be stored correctly.
With this in mind, over the years and after several embarrassing experiences – like the one in the movie Catch Me If You Can – governments and companies have grown into the ethical commitment to protect personal data.
And this is a topic that has been discussed previously. For example, in the 1980s, the Organization for Economic Cooperation and Development (OECD), with the collaboration of the Council of Europe, published a guide to protecting the privacy and cross-border flows of personal data.
This has led to the General Data Protection Regulation (GDPR) being a global standard, especially since its entry into effect in May 2018.
This regulation is essential to strengthen people's fundamental rights in the digital age and facilitate economic activity carried out at the speed of light through the Internet since it clarifies the rules applicable to companies and public bodies in the single digital market.
This is due to a latent problem of using personal data since they are being used as merchandise for sale to the highest bidder.
John Oliver, on his Last Week Tonight program, spoke about the massive data leak by businesses that do not take the security of their customers with due importance. He gave an overview of this inconvenience and aspects that must be considered to keep everyone's data safe.
In addition, this is an issue that also concerns governments and public entities. For example, China is a country that has opted to have its entire population identified; by 2022, it is expected that the country will have a closed-circuit surveillance camera (CCTV) for every two inhabitants.
Privacy vs security
Likewise, it happens in many other countries; at least 65 of the 176 countries actively use technology to track and control citizens.
To what extent is the promise of greater security worth the loss of privacy? This and many other questions arise in these turbulent times, but they are essential to ask ourselves.
We need to evaluate the technology on its own merits and the direction it takes the more it is deployed. This is why companies must have an ethical commitment to personal processing data and, in turn, go hand in hand with regulations, such as the GDPR, which seeks to protect end users. It’s vital to have an ally who is guided by these principles.
MetaMap: your ally in ID verification
MetaMap is committed to information security, which is why we are your ideal ally. We follow the European GDPR private data security regulations and guarantee fast and secure identity verification for both your company and end users.
All thanks to the use of Artificial Intelligence (AI) and the fact that we generate processes of identification in a purely digital way with the highest security standards.
We at MetaMap know that a company's needs may vary and that not all of them require the same identity verification system.
In MetaMap, you can build your flexible workflows of trust that can be adapted to the needs of each company:
- ID Document verification
- Liveness Detection
- Custom Document Verification
- Email verification
- Phone Verification
- Location Intelligence
- AML Watchlist Screening & Monitoring: verify your user against 1,200+ global watchlists
- E-signature: allows users to authenticate and sign documents digitally
- Bank Account Details: check user finances with bank account details
Take advantage of the chance to unlock borderless growth. Join the over 550 companies worldwide working with us at MetaMap and get a free trial of our product now.