Identity Verification
Identity verification is the process of confirming that a person is who they claim to be. It relies on the analysis of official documents, biometric data, or personal information to establish the authenticity of an identity.
Identity verification is the cornerstone of any KYC (Know Your Customer) compliance procedure. It takes place during client onboarding, sensitive transactions, or whenever there is doubt about a customer's identity. Methods range from manual document checks to automated solutions powered by artificial intelligence.
Modern identity verification technologies combine multiple layers of control: automated data extraction from documents (OCR), verification of document security features, facial comparison between the bearer and the document photo, and liveness detection to prevent fraud attempts using photos or videos.
Within the European regulatory framework, remote identity verification is governed by the eIDAS regulation and anti-money laundering directives (AMLD). Obligated entities must implement verification measures proportionate to the identified risk level.
Regulations
Real-world examples
- 1.An online bank verifies a new customer's identity by asking them to photograph their ID card and record a video selfie to confirm the applicant is the document holder.
- 2.A law firm uses a remote identity verification solution to authenticate clients before establishing a business relationship, meeting AML regulatory requirements.
- 3.A leasing company automatically verifies the identity of a company director before granting financing, cross-referencing passport data with official databases.