Getting everything in a click demonstrates how technology digitalizes our world. You will find traces of digitalization in every aspect of our survival. The digital revolution brings comfort and forces our minds to think beyond the normal, but it also raises the chances of potential risks. Now, digital identity theft is one of the major problems that every internet user faces while handling their online activities.
Data reveals that approximately 1.4m fraud cases were registered in the UK during the first half of 2023. Since 2013, data breaches driven by identity theft have cost the UK approximately £4 billion every year and comprise the data of more than 140 million files during the same period.
Moreover, the top five types of identity theft in 2022 were connected with credit cards, bank accounts, taxes, and business or personal loans. Here, the data shows how identity theft became the source of digital crimes and brought the subject of digital ID verification into the limelight.
What is Digital Identity Verification?
A digital identity is a process that establishes a person’s identity digitally. Through digital identity verification, the identity of a real person is established without face-to-face communication. It confirms that the personal information provided by the person is true.
Using the various layers of technology in the process of digital ID verification, you can ensure that there is an actual person behind the screen. Also, moving rapidly in the era of connected intelligence, verifying an individual’s identity digitally becomes an inseparable part of secured user experience, especially in point-of-sale systems, artificial intelligence, payment gateways, and IoT-enabled devices.
Things to Know About Digital Identity Verification
While diving into the era of digital verification, you should some key points when you are ready to establish your online identity.
Opt for facial recognition wherever possible
Technology is growing at an incredible speed and allows people to keep everything in their pocket. Besides various advantages, technology raises concerns about digital theft. Thus, it is important to opt for robust ways to prevent potential risks and facial recognition is one of the smart ways to establish digital identity.
Using various algorithms, the technology of facial recognition makes digital verification more effective. If banks and financial institutions use special-grade facial recognition in the KYC process, the risk of bank fraud would be reduced.
Mitigate identity theft
As discussed, one of the major cyber crimes is identity theft which allows criminals to misuse people’s personal information. To combat identity theft, many companies and websites use real-time ID verification and ensure a real person is behind the screen.
Digital ID verification can allow banks, financial institutions, governments, and other organizations to control identity theft. During the process, your documents for personal information such as date of birth, name, signature, and more will be verified.
Reduces the risk of human error
Have you ever imagined a time when technology was not a part of our lifestyle? Document and identity verification were done manually and making mistakes is part of human nature. In the technical world, a small mistake can lead to a data breach that can cost companies millions of dollars.
Surprisingly, data breaches have exposed personal information of more than 4 billion personal records in 2022. With digital ID verification, data can be secured, and the cost of manual KYC can be reduced as well.
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Different Methods to Verify Identity
When it comes to verifying digital identity, you can use different methods and reduce the potential risk of cyber-crime:
- Government-issued identification documentation
In this process, you need to take photos of government-identity documents and upload them to the company’s security and verification department.
Biometrics include facial or fingerprint recognition technology to match the data contained in the documents. Through biometric verification, it is easy to detect and reduce illegal activities.
- One-time-passcode (OTP)
A smartphone acts as a helpful tool to verify and authenticate the information. By sending one-time authenticated codes via text messages, companies can verify the identity of new users. However, this method fails in SIM swap scams and porting attacks.
- Verification with other types of documentation
To verify new users, many companies use personally identifying documents like utility bills. In this verification, you can ask for water bills, bank statements, and other documents of two to three months to evaluate the user’s information.
Converting everything from physical to digital unfolds the technical advancement. And, this advancement brings the concept of digital identity verification into the limelight to handle personal information or data digitally as data breaches lead to various types of cybercrime. So, explore the segments of digital ID verification and save your online information effectively.