Best Practices for Digital Identity Verification

The constant evolution of identity fraud tactics requires companies to implement flexible, low-friction, risk-based approaches to combating criminal fraud. Traditional approaches for ID verification rely on static personal identity information (PII) like the name, address, Social Security number, date of birth, and phone number of an individual. However, when considered in isolation, these elements are not nearly as effective in predicting actual fraud risk.

Employing emerging trends in cybersecurity can help strengthen your company’s digital barriers against fraud. A risk-based systematic approach to ID authentication employs highly effective fraud prediction models, reducing overall risk of fraud.

Here are the best practices to consider when implementing comprehensive digital ID verification protocols.

Reduce Reliance on Manual Processes

Most companies still perform manual checks of customer identity documents. But these manual checks are tedious, time-consuming, and prone to errors. By leveraging a verification flow that incorporate data first and then automated ID document authentication, your business can increase both the efficiency and accuracy of ID verification, save money and be more responsive to their clients.

Increase Efficiencies by Incorporating Biometrics

Biometric technology such as video facial or fingerprint recognition, turns physical attributes (that are difficult to replicate and unlikely to be lost) into a password. By leveraging these unique biological markers, identification verification processes can increase their effectiveness and reduce customer friction. Fingerprint and face ID technology is already being implementing into mobile devices which increases customer familiarity.

Perform S.M.A.R.T.ly – Include Performance Monitoring Protocols

S.M.A.R.T. is a mnemonic acronym used to guide goal setting and measuring outcomes. A successful risk-based digital ID process is Specific, Measurable, Attainable, Relevant, and Time-based. By building a system that performs S.M.A.R.T.ly, areas of improvement can be readily identified, and adjustments can be made with little disruption or sunk cost.

Performance monitoring provides your business with critical opportunities to assess efficacy, improve efficiency, identify potential new customers, adapt processes to defend against emerging threats, and create strategies for further improvements. Key indicators to track include:

  • Pass rates (Actual vs. Expected)
  • Decision and result code distributions
  • Score distribution (Actual vs Expected)
  • Customer characteristics distributions (Actual vs Expected)
  • Out-of-wallet question performance (Actual vs Expected)
  • Customer volume and velocities
  • Decision and result code distributions

Be Mindful of the Customer Experience

Digital ID Proofing can be a source of friction between a company and its clients. It’s important that risk managers identify and define the risks and vulnerabilities a digital ID verification process is to address. Risk-based ID verification allows what personal information is required, how responsive the approval or rejection process, and transactions to be approved with minimal review, while high-risk transactions and customers are put through a more rigorous process. This reduces unnecessary friction during the authentication process for most customers.

Being aware of the end-user experience will help you build a holistic protocol that improves customer relations and drives increased revenues.

Build Your Digital ID Verification Process with Integrity

The most predictive authentication and fraud scores are those that incorporate multiple data assets spanning both traditional static PII customer information and modern dynamic digital ID categories such as public records, credit history, and online transactions. Businesses have a duty to their customers and stakeholders to implement best practices for authenticating a user’s claimed identity thereby reducing the risk of fraud. This requires businesses to maximize the potentials of digital technology for enhancing cybersecurity and replacing outdated methods.

Integrity by Aristotle has built a powerful suite of identity verification solutions that can be configured to carry out a wide range of functions to help you to prevent fraud and avoid costly regulatory fines. ID-Direct is a web-based solution allows you to quickly and conveniently authenticate individuals online against our database of government-issued ID’s for citizens of 135 countries around the globe. Contact us today to learn how we can help your business build a safe and effective risk-based digital ID verification protocol.

Aristotle’s SVP of Business Development, Michael Bolcerek will be attending Money2020 Europe from June 7th – June 9th2022 in Amsterdam.   If you are interested in meeting in person, please email [email protected] to arrange for an appointment.


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