Confidential Identity Verification – How to Avoid False Positives

As digital wins more and more spheres of our lives, it’s crucial that businesses have reliable ways to verify customers’ identities online. This prevents fraud and data misuse.


It also helps companies to uphold a strong reputation by ensuring that their customers, vendors, and third parties are who they say they are.

Capture the Document Correctly

When conducting ID verification, the quality of the document must be assessed and fine-tuned. For example, if the document is not properly lit or has a bad background, this can cause issues with the data being captured and uploaded. Fortunately, advanced solutions use document recognition algorithms to evaluate the document’s quality and check for any potential issues like light leaks or a missing page.

Additionally, these same algorithms can help to assess the authenticity of the document. For example, some of these solutions will compare the data contained within the image to known fraud patterns and databases. This allows the solution to ensure that the data is valid and that it does not match any known records of fraudulent activity.

As a result, it is essential for businesses of all sizes to utilize identity verification during their onboarding process. This can reduce fraud and ensure that all users of their service are who they say they are. It is also an essential tool for industries that deal with sensitive information, such as banking, healthcare, and telemedicine. It helps to maintain compliance with regulations and reduces the risk of losing money or reputation due to fraud.

Ask for More Than One Form of Identification

For businesses that verify personal information or high-value transactions, a confidential identity verification process can be a key part of ensuring security and compliance. However, relying on only one form of identification during this process can be risky and may open businesses and consumers to fraud.

Financial services are one of the most heavily regulated industries in which to perform identity verification. In order to meet regulatory requirements, banks often use a combination of methods to ensure that they are dealing with the person who is creating or opening an account with them. These methods include verification of an individual’s driver’s license, passport, articles of incorporation and partnership agreements or trust deeds for entities and financial statements.

In addition to verifying official documents, some companies may require signers to answer knowledge-based questions or provide a one-time password (OTP) to access an online service. These methods of verification can be a quick and easy way to identify individuals but they are not always as robust as more advanced digital identity verification solutions.

In a world where fraudsters are constantly trying to find ways around identity verification, it is important that businesses have multiple methods of verifying identities and the data being shared with them. As a result, it is a good idea for companies to periodically re-verify all employees that have access to private information or that work in high-security areas of the business.

Implement a Due Diligence Process

In the wake of major data breaches at companies like Experian and Marriott, it’s clear that no business can afford to ignore red flags. That’s why it’s important to implement a due diligence process during confidential identity verification that ensures every detail is examined thoroughly. The process should involve a team of professionals who work together to conduct the necessary checks and analysis.

One of the most important steps in implementing a due diligence process is building a customer risk profile. This will help you determine how much due diligence a particular customer needs based on their level of risk. High-risk customers will need more in-depth due diligence compared to low and medium-risk customers.

Another key step in the process is conducting a search of government sanction lists. This will help you identify whether a person or company is prohibited from engaging in certain activities, such as money laundering and terrorism financing.

Finally, it’s important to use a comprehensive due diligence checklist to ensure all the necessary steps are taken. This will help you track progress and prevent any crucial aspect from being overlooked. A project management tool like Trello or Asana can also help you streamline the process, ensuring that everyone is on the same page. Legal research tools like Westlaw or LexisNexis are also helpful, providing access to vital case law and legislation to support your due diligence efforts.

Avoid False Positives

When it comes to identity verification, businesses are often concerned about avoiding false positives. This is the risk of flagging a legitimate customer as fraudulent because of flawed data analysis techniques. This is one of the main reasons it’s important to work with a trusted partner that can provide the right level of insight for each specific situation.

This means taking into account the individual’s unique circumstances and history – not just their current actions and past activities. It also involves using more than one form of identification, and looking at a person’s entire profile.

The process of capturing an individual’s information and then checking it against a trusted data source to verify it is known as KYC (Know Your Customer) or CIP (Customer Identification Program). Each company has its own requirements for what documents are acceptable to use, but some typical documents include utility bills less than three months old, bank statements from the last few months, certified articles of incorporation for companies, partnership agreements or trust deeds for other entities and financial statements.

This comprehensive approach to identity verification can help businesses build a robust and effective KYC/KYB and AML (Anti-Money Laundering) program, helping them reduce the risks of fraud, money laundering and other criminal activities that can occur when someone’s identity is not properly verified. To get started, find a trusted identity verification provider that offers the services you need for your business.