Identity verification is especially important in institutions that provide money services, financial instruments, property such as real estate or art. Businesses such as travel and hospitality services and online casinos will benefit from ID verification for the purpose of fraud prevention.
However, more financial institutions are moving their services online – creating websites to serve their customers over the Internet. In order to comply with mandatory anti-money laundering regulations, they need to verify the identity of their internet customers. The fastest and most effective method of verifying these customers is through Electronic Identity Verification.
Electronic Identity Verification or eIDV is defined as the verification of a person’s identity remotely through digital means. This is essentially the first part of the broader Electronic Know Your Customer (KYC) process, or eKYC. The Electronic Identity Verification process involves two major stages: documentary verification and non-documentary verification.
Photos of a driver’s license, passport or other state ID documents are electronically checked to determine its authenticity. Another purpose is to establish the validity of the document’s details such as names and date of birth. A real time photo of the customer is then compared to the photo on the ID using electronic identity verification software. This can be done remotely.
Customer data is checked across various databases including watch lists, credit bureaus, government agencies, utilities, adverse media, and other data sources. The purpose is to get additional information and screen for negative news about the customer to avoid possible risks. With electronic identity verification, this stage can be done in minutes.
Traditional methods of ID verification require the presence and checks of identity documents, which means extensive paperwork and possible errors. By contrast, electronic identity verification with its quick and easy procedure brings considerable benefits to both customer and service provider.
There are four main reasons for you to use electronic identity verification:
Taking all this into account, there is no doubt that electronic identity verification is the best choice for your business.
It is essential for:
Sum & Substance provides electronic verification solutions, built to assist companies like yours across different industries to comply with KYC/AML regulations. Our identity verification platforms like Sumsub Mobile SDK, approved by local and international regulators, will eliminate the burden of KYC compliance on our clients. To verify your clients and protect your business from fraud, contact us Today!