IDENTITY PROOFING

The process to combine Identity Verification and Identity Authentication can be termed as Identity proofing. Identity Proofing helps establish trust online like no other single measure can. Over the internet, nobody knows who you are, or what you do. You could potentially be a fraudster, a criminal, an uncaught molester or an individual performing illicit activities. However, nobody is going to allow you to avail a digital service, whether that’s a digital purchase or the opening of a Bank account without having your identity proofed. Where regulated institutions are concerned, a KYC process is a must-have procedure to implement. The failure to implement such measures might land a company in tight situations. Consider the successful completion of a KYC process as equivalent to ‘Identity Proofing’ in a less fancy, non-regulatory term.

What Goes inside Identity Proofing

Identity Proofing is the merger of Identity Verification and Identity Authentication. Where Identity Verification is the process, where the identity of the subject individual is confirmed. This is not normally achieved by an individual undergoing individual components Facial Verification and Document Verification. An individual is made to display their Identification Document to a web camera, the information identifiers present on the card are compared with existing PII information, provided by the customer at user registration, or through a central proprietary database. Simultaneously an individual’s picture from a real-time upload or through live video will be compared to that found on the identification documents. An AI-based system shall assess and then verify the individual accordingly. If an identity after being verified is also deemed legit and authenticated in accordance with who they say they are, we can say Identity Authentication has been achieved. The successful completion of both these elements can be termed as Identity Proofing.

Is Identity Proofing the Same for all?

Identity Proofing is not the same for all, considering there are multiple factors at play that do not allow for sensitive identification standards to be applied. Jurisdictionally speaking, every country has its own set of respective requirements for ‘Minimum identification’. These include the perceived risks posed by a customer and the appropriate diligence category that they fall under. That is CDD, SDD, EDD. Likewise, irrespective of the jurisdictional aspect, every business has its own perceived risk level against which they operate, including match-rate tolerances. According to varying levels of expectations and set individual requirements, final Identity Proofing requirements will vary from company to company and jurisdiction to jurisdiction.

Instead of just relying on a single technique for Identity Verification, a multi-layered approach should be favored against traditional methods. Identity Verification should be looked into multi-dimensionally. Companies should assess their risk, and match tolerances to better apply diligence practices that are better suited to risk profile presented to them. Where Identity Proofing is the way forward in next level KYC services. To ensure greater risk assessment within the onboarding process. To better address fraud through vetting with more scrutiny. Identity proofing incorporates advancement in global technology, regulatory requirement, and customer experience.

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