Accurately verify customers anywhere
Screen users against over 1100+ global sanctions, PEP, adverse media watchlists and 170K+ news sources.
Verify users against reliable government sources
Accurately match faces for user-friendly authentication
Access reliable records from Africa's business registries
Automatically spot anomalies to prevent fraud on your platform
Easily confirm bank account ownership
Validate phone number records in South Africa, Nigeria, Tanzania, Uganda and Kenya
Screen users against over 1100+ global sanctions, PEP, adverse media watchlists and 170K+ news sources.
Retrieve personal information from government records and match a selfie to official ID photo.
Match personal information against official government records.
Confirm the identity of an existing user.
Enhanced DocV authenticates and cross-references documents with government databases in one step.
Retrieve business records and stakeholder information from the official business registry
Identify users attempting to create multiple accounts using facial biometrics.
Retrieve personal information from official government records.
Verify the authenticity of an ID document and match a selfie to the ID card photo.
Gift Arku
Marketing Associate
Identity verification is a critical process that allows organisations to confirm an individual's identity to grant access, approve applications, or complete transactions. Organisations risk fraud, theft, and non-compliance with regulations without proper identity verification.
Effective identity verification within an organisation depends on four core principles: accuracy, reliability, security, and user-friendliness. To achieve this, it is essential to use multiple reliable sources for confirmation, implement strict security protocols, and prioritise user convenience while following the rules.
This article will discuss the core principles of adequate identity verification. You will also learn how it works and the best identity verification methods to suit your business.
Identity verification is collecting, validating, and confirming personal data and documentation an individual provides to establish their identity. This process involves verifying information such as names, addresses, dates of birth, and government ID numbers to ensure that individuals do not submit false information on applications or when opening accounts.
The specific method and identity verification process may vary depending on your business model. However, all forms of identity verification strive to compare the information the user provides with verified datasets to verify the authenticity of their profile.
For instance, users may be asked to provide their name, address, date of birth, Social Security number, etc.
An effective identity verification process involves comparing this information against datasets such as government-issued IDs or third-party databases to confirm the person's identity.
Identity verification works by using signals to compare these data. They include
At its core, identity verification is the process of ensuring that an individual is who they claim to be. This process typically involves checking identity information against trusted sources and using various methods to confirm the authenticity of the person. Here’s a breakdown of the primary components:
Identity verification is vital for various reasons:
Adequate identity verification is crucial for security and trust in various industries, from financial services to online platforms. Here are the core principles that constitute an effective identity verification solution:
Verification processes should be accurate and reliable. This includes using multiple data sources and validation methods to ensure the claimed identity is legitimate.
To enhance security, it's advisable to use a multi-factor verification approach that combines something the user knows (such as a password or PIN),' something the user possesses (like a smartphone or security token), and something the user inherently is' (for instance, biometric identifiers like fingerprints or facial recognition). This approach increases the difficulty for unauthorised individuals to gain access.
Protect the personal information used for verification. In creating an identity verification system, you must implement robust data security measures, such as encryption and secure storage, to prevent data breaches.
Risk-based assessment involves evaluating the level of risk associated with a user or transaction and then applying the appropriate verification scrutiny based on that assessment.
The critical aspect of risk-based assessment is its dynamic nature. Instead of using a one-size-fits-all solution, it customises the verification process according to the identified level of risk. This means simple verification methods suffice for low-risk scenarios, while high-risk situations require more stringent measures such as multi-factor authentication or manual review processes.
User experience (UX) in identity verification involves designing a smooth and user-friendly process while maintaining necessary security standards. UX is a core principle because it directly impacts how users perceive and engage with the verification process and the service or platform implementation.
A well-designed UX for identity verification ensures that complex or time-consuming procedures do not deter legitimate users. It minimises friction by reducing the steps required for verification or ensuring that instructions are clear and easy to follow. This is crucial because a negative experience can result in abandoned transactions, decreased customer satisfaction, and potential harm to the business's reputation.
No matter the identity verification procedure you put in place for your users, it has to adhere to relevant data protection and privacy regulations, such as GDPR or HIPAA, and industry-specific requirements like KYC (Know Your Customer) and AML regulations.
Build security systems that can scale to accommodate growing user bases without compromising security or efficiency.
The field of identity verification is continually evolving, driven by advancements in technology. Some emerging trends include:
Identity verification typically involves confirming that the person claiming to be a particular user is indeed that person.
Every business has a customised workflow to verify a user’s identity, but here’s a general procedure that can help you achieve your KYC obligations:
Clearly define the level of identity verification needed based on the nature of your platform or service. Consider the sensitivity of the information involved and the regulatory requirements in your industry.
As mentioned earlier, there are various methods for identity verification, including:
Select and integrate identity verification tools or services that align with your chosen verification method.
Some companies specialise in providing APIs and SDKs for seamless integration. At Smile ID, we have built some of the best verification tools, especially for African-focused businesses.
From image capture optimisation for lower-end smartphones to local knowledge of African ID documents, SmileID’s solution was built to consider the needs of African users. Book a free demo to learn more today.
Next, you should capture the necessary information for verification. This may include personal details, documents, or biometric data.
If using document verification, prompt the user to upload a scanned copy or a clear photo of their official ID. Use optical character recognition (OCR) technology to extract information from the document.
Thankfully, SmileID allows you to store accurate customer information without the mistakes of manual entry. Its OCR technology transcribes text from ID document photos with 96% accuracy. Book a free demo to see how it works.
If using biometric verification, guide the user through capturing their biometric data, such as fingerprints or facial features. Use this data for comparison during subsequent logins.
Ask the user to answer security questions or provide specific information that only the legitimate user would know. Ensure the questions are not easily guessable or publicly available.
Implement 2FA to add a layer of security. This could involve sending a temporary code to the user's registered email or mobile device.
Create a verification process that guides users through the chosen method(s). Communicate the steps involved and assist if needed.
Regularly review your identity verification process for effectiveness. Monitor for any suspicious activities and update your verification methods as needed.
Pro Tips:
The primary purpose of conducting identity verification is to comply with AML regulations.
So you should have these factors in mind and incorporate them into your verification process to help fish out risks sooner:
PEPs are individuals who are or have been entrusted with prominent public functions. This includes government officials, high-ranking military officers, senior executives of state-owned enterprises, and high-level officials in political parties.
Risk:
Red flags:
Adverse media refers to unfavourable information about an individual or entity publicly available through media sources. This can include news articles, legal records, and other sources of information.
Risk: Adverse media can indicate involvement in criminal activities, financial irregularities, or connections to sanctioned entities.
Red Flags:
Are there rapid or frequent changes in account information? Has the user had multiple failed login attempts or password reset requests?
These unusual behaviours should raise red flags. Also, unexpected changes in user behaviour, such as sudden large transactions or access from unique locations, are among the indicators for closer scrutiny.
Generally, Smile IDs solution empowers businesses to conduct KYC tailored to their specific needs. The KYC process includes:
Smile ID offers an array of identity verification solutions to help businesses meet their KYC compliance needs. This includes:
Take extra precautions by running an AML check on the customer against PEP, Sanctions, and watchlists.
The technology uses optical character recognition (OCR) to transcribe text from ID document photos with 96% accuracy, eliminating manual data entry errors.
It matches the picture on the document with the user-provided selfie to prove document ownership. Authenticity checks look for official ID document features like watermarks and barcodes. All verifications are backed by real-time human review within three minutes.
Businesses can perform this via our no-code platform or API/ SDK integration. Book a free demo today to learn more.
In conclusion, adequate identity verification is crucial for business success, ensuring security and compliance while building user trust. A key lesson from studying comprehensive identity verification strategies is balancing robust security measures with a seamless user experience.
Technologies such as OCR and facial recognition have transformed the verification process by providing high accuracy and real-time results.
Your business must adopt these advanced solutions to stay ahead in combating identity fraud and streamlining customer onboarding. By integrating these techniques, you can confidently onboard legitimate customers while deterring fraudulent activities.
Smile ID solutions are designed to provide you with comprehensive AML and KYC coverage in 54+ countries across Africa. Our APIs and SDKs are designed for easy integration and interaction with your existing infrastructure. Book a free demo today to learn more.
We are equipped to help you level up your KYC/AML compliance stack. Our team is ready to understand your needs, answer questions, and set up your account.