6 Considerations for Choosing an Identity Verification Solution

Businesses across all sectors, from financial institutions and healthcare providers to shopping platforms and gig marketplaces, face the constant challenge of ensuring that the individuals they interact with are who they claim to be, and to do that, they rely on the process of identity verification.

But identity verification takes on many forms, and some solutions specialize in just specific industries. Others emphasize compliance framework alignment. The approaches used by vendors can vary greatly as well. Some use biometric methods or rely exclusively on multi-step document verification. 

Irrespective of an organization’s goals, security, compliance, and customer experience teams seek solutions that help them balance the essential need to eliminate fraud while not adversely impacting the customer journey. Yet, inadequate identity verification can lead to a cascade of problems, including financial losses due to fraud, reputational damage, regulatory fines, and erosion of customer trust. 

But navigating the complex possibilities available from different identity verification solutions can be daunting. With a wide range of options available, each promising unique capabilities, how do you choose the right solution for your specific needs? 

This blog explores the critical features you should look for in an identity verification solution, and focuses both on solution efficacy and on practical considerations. We'll explore why traditional methods like facial recognition and liveness detection, while seemingly advanced, can be vulnerable to manipulation and bias. 

We'll highlight the power of alternative approaches, such as leveraging authoritative data sources like mobile network operator data, to build a more secure and reliable identity verification process. By understanding these key elements, you'll be empowered to make informed decisions, protect your business from fraud, and foster a safe and trustworthy environment for your customers.

Accuracy & Reliability

The core of effective identity verification lies in its ability to accurately confirm a user's identity attributes. While some solutions focus solely on document verification or liveness detection, a more robust approach prioritizes verifying the connection between a user and their identifying information. Look for solutions that excel at confirming key attributes like phone number ownership and tenure, email address validity, and other relevant data points. A high-performing solution minimizes false positives and negatives by leveraging authoritative data sources and sophisticated matching algorithms. 

Rather than relying on potentially spoofed biometrics or easily manipulated document images, focus on verifying the attributes that truly tie a user to their digital identity. Consider how effectively the solution confirms these attributes in real-time, ensuring the information is current and accurate. A superior approach prioritizes confirming "who" someone is, rather than just "what" they have.

When evaluating an identity verification solution for accuracy and reliability, buyers should look for the following:

• Data-Driven Accuracy: Don't just accept marketing claims. Request specific, verifiable data on accuracy rates, including false positive and false negative rates. Ask for breakdowns by document type, region, and image quality.
• Independent Verification: Look for solutions that have undergone independent testing and audits. Certifications and compliance with relevant industry standards are positive indicators.
• Performance Metrics: Ask for data on processing times and system availability. A reliable solution should offer consistent performance even under high volumes of verifications.
• Continuous Improvement: Inquire about the vendor's process for continuously improving accuracy and adapting to new fraud techniques. Do they regularly update their algorithms and data sources?
• Transparency and Explainability: Understand how the solution makes its decisions. While some algorithms are complex, the vendor should be able to provide some level of transparency into the verification process. This is crucial for building trust and addressing potential biases.
• Real-World Testing: Whenever possible, conduct your own pilot testing with realistic data and scenarios to evaluate the solution's accuracy in your specific use case.

Verified Identity & Attribute Accuracy

Effective identity verification goes beyond simply checking the validity of a document. True security and user trust are built on accurately confirming the connection between a user and their core identifying attributes. 

Prioritize solutions that focus on verifying these key attributes – such as phone number ownership, email address validity, and other relevant data points – rather than relying solely on document checks. Confirming these attributes establishes a stronger, more reliable link between the digital identity and the real person. 

Look for solutions that leverage authoritative, real-time data sources, like mobile network operator (MNO) data, to ensure accuracy and minimize the risk of outdated or manipulated information. 

A focus on attribute verification allows for more dynamic and continuous identity assessment, adapting to changes in user information and providing a more robust defense against fraud. This approach also avoids potential biases or vulnerabilities associated with document-centric methods, focusing instead on verifiable connections between a user and their digital identifiers. 

The display of digital checkmarks, visibly indicating verified status, plays a vital role in fostering trust and safety within online communities. These visual cues reassure users that they are interacting with authentic individuals, encouraging engagement and building a sense of security. By emphasizing verified attributes and prominently displaying verification badges, businesses can cultivate a more trusted environment where users feel confident interacting and sharing, ultimately contributing to a thriving and secure online community.

Key considerations for verified identity:

• Authoritative Data Sources: Prioritize solutions that leverage authoritative data sources, such as mobile network operator (MNO) data, to confirm possession and control of phone numbers, email addresses, and other identifying attributes. This provides a strong signal of identity ownership.
• Real-Time Verification: Look for solutions that offer real-time verification of these attributes, ensuring that the information is current and accurate. Stale or outdated data can lead to false positives or negatives.
• Phone Number Verification: Confirming phone number ownership and tenure is critical, as phone numbers are often tied to real identities. The solution should be able to verify that the phone number belongs to the individual being verified.
• Email Verification: Verifying email addresses helps ensure that they are valid and active. This can also help prevent the use of temporary or disposable email addresses.
• Address Verification (Where Applicable): Depending on your business needs, address verification may be important. Look for solutions that can verify addresses against reliable databases.
• Identity Resolution: A strong solution should be able to resolve identities across different data sources, linking various attributes (phone number, email, address) to a single individual. This helps create a more complete picture of the user's identity.
• Data Matching and Scoring: The solution should use sophisticated data matching and scoring algorithms to assess the likelihood that the provided attributes belong to the individual being verified. This helps identify potential discrepancies or fraudulent activity.
• Coverage and Availability: Ensure the solution has broad coverage of data sources and is available in the regions where you operate.
• Accuracy Metrics Specific to Attributes: Don't just focus on document verification accuracy. Ask for data on the accuracy of attribute verification, such as phone number verification match rates.
• Continuous Monitoring and Updates: Data changes constantly. Choose a solution that continuously monitors and updates its data sources to maintain accuracy.

Seamless User Experience

A clunky verification process leads to customer frustration and abandonment. Prioritize a user-friendly experience that's fast, intuitive, and mobile-friendly. Prioritize solutions that offer a fast, intuitive, and mobile-friendly experience, and consider how well it integrates into your existing workflows.

You can deliver a seamless user experience with a solution that prioritizes the following:

• Speed and Efficiency: The verification process should be quick and efficient, minimizing the time it takes for users to complete. Look for solutions that offer fast document scanning and data extraction.
• Minimal Steps: Reduce the number of steps required for verification to the absolute minimum necessary. A streamlined process improves user experience and reduces drop-off rates.
• Intuitive Interface: The user interface should be intuitive and easy to navigate, even for users who are not tech-savvy. A clean and uncluttered design is essential.
• Branding and Customization: The ability to brand and customize the verification process to match your company's look and feel can enhance the user experience.
• Integration with Existing Workflows: Seamless integration with your existing CRM, onboarding platforms, or other systems is crucial for a smooth and efficient workflow. Look for well-documented APIs and SDKs.
• User Testing: Before deploying a solution, conduct user testing to identify any usability issues and ensure a smooth and positive experience.

Scalability & Integration

As your business expands, your identity verification solution must scale effortlessly to meet growing demands without sacrificing performance or reliability. Seamless integration with your existing systems is also crucial for operational efficiency.

Organizations seeking a solution that makes integration easy and allows for longterm scalability should focus on these attributes: 

• Volume Handling: The solution should be able to handle a significant increase in verification volumes without performance degradation. Ask for data on the vendor's capacity and how they ensure scalability.
• API Availability and Documentation: Well-documented APIs are essential for seamless integration with your existing systems, such as CRMs, onboarding platforms, and other applications. Evaluate the quality and completeness of the API documentation.
• SDKs and Libraries: The availability of SDKs and libraries for various programming languages can simplify integration and reduce development time.
• Deployment Options: Consider the different deployment options available (e.g., cloud-based, on-premise). Choose the option that best aligns with your infrastructure and security requirements.
• Flexibility and Customization: The solution should be flexible enough to adapt to your evolving business needs. Can it be easily customized to support new workflows or integration requirements?
• Monitoring and Reporting: Look for solutions that provide robust monitoring and reporting capabilities. This allows you to track performance, identify potential issues, and optimize the verification process.
• Future-Proofing: Choose a solution that is designed to adapt to future changes in technology and regulations. A vendor that is committed to innovation and continuous improvement is essential.

Robust Fraud Prevention

Rather than relying solely on a single attribute, prioritize solutions that verify identity attributes using authoritative data sources, such as mobile network operator data. This approach focuses on confirming possession and control of phone numbers linked to real identities. Look for solutions that detect inconsistencies and anomalies to identify synthetic identities and other fraudulent activity, providing risk assessments for each verification to flag suspicious cases. This data-driven method strengthens fraud prevention without relying on easily spoofed biometrics.

A robust approach leverages authoritative data sources to verify identity attributes and has these capabilities:

• Authoritative Data Sources: Prioritize solutions that utilize authoritative data sources, such as mobile network operator (MNO) data, to verify possession and control of phone numbers and other identifying attributes. This helps establish a stronger link between the digital identity and a real-world individual.
• Identity Attribute Verification: Focus on solutions that go beyond basic checks and verify key identity attributes, such as phone number ownership, tenure, and device information. Corroborating multiple attributes strengthens the verification process and makes it harder for fraudsters to impersonate someone.
• Anomaly Detection: Look for solutions that employ anomaly detection algorithms to identify suspicious patterns and inconsistencies that may indicate fraudulent activity. This can include detecting unusual changes in phone number ownership or device usage.
• Synthetic Identity Detection: Synthetic identities, created by combining real and fake information, are a growing threat. Ensure the solution you choose has capabilities to detect and flag these types of fraudulent identities.
• Risk Scoring and Assessment: A robust solution should provide risk scores or assessments for each verification, allowing you to prioritize reviews and focus on potentially high-risk cases.
• Device Intelligence: Leveraging device intelligence can help identify suspicious devices or patterns of device usage that may be associated with fraud.
• Behavioral Biometrics (Optional but valuable): While not always essential, some solutions incorporate behavioral biometrics to analyze user behavior and identify anomalies that could indicate fraudulent activity.
• Continuous Monitoring: Fraud prevention is an ongoing process. Look for solutions that offer continuous monitoring and analysis to detect and respond to emerging fraud threats.
• Data-Driven Approach: A data-driven approach to fraud prevention, using authoritative data sources and advanced analytics, is more effective than relying solely on easily spoofed biometrics.
• Adaptability: Fraudsters are constantly evolving their tactics. Choose a solution that is adaptable and can be updated to address new and emerging fraud threats.

Vendor Reputation & Support

Choosing the right vendor is as important as choosing the right technology. A reputable vendor with a proven track record and excellent support can make all the difference in your identity verification success.

Key Considerations for Vendor Reputation & Support:

• Industry Experience: Look for vendors with extensive experience in the identity verification space. How long have they been in business? What is their track record?
• Customer Reviews and Testimonials: Check online reviews and testimonials from other customers to get a sense of the vendor's reputation and customer satisfaction. Look for reviews on reputable platforms.
• Case Studies and Success Stories: Ask the vendor for case studies or success stories that demonstrate their ability to deliver results for businesses similar to yours.
• Financial Stability: Ensure the vendor is financially stable and likely to remain in business for the long term. You don't want to invest in a solution from a company that might disappear.
• Security Practices: Inquire about the vendor's own security practices. How do they protect their systems and customer data? Do they have relevant security certifications?
• Service Level Agreements (SLAs): Review the vendor's SLAs for uptime, performance, and support response times. Make sure the SLAs meet your business requirements.
• Customer Support Channels: Evaluate the availability and responsiveness of the vendor's customer support. Do they offer phone, email, and chat support? Are they available 24/7?
• Training and Onboarding: Does the vendor provide adequate training and onboarding for your team? A smooth onboarding process is essential for successful implementation.
• Dedicated Account Manager: Having a dedicated account manager can be helpful for addressing any questions or concerns you may have.
• Support Documentation: Look for vendors that provide comprehensive support documentation, including FAQs, tutorials, and knowledge bases. This can help you resolve issues quickly on your own.

Want to learn more about how an identity verification solution can help your organization? Contact Prove and see how we're helping some of the world's leading brands.