Everything you need to know about electronic identity verification

Safety for companies combined with convenience for clients - electronic identity verification makes it possible.
More and more companies are doing their business over the Internet, so they definitely need to ensure that their online customers are who they say they are.

This is especially important in processes where people deal with money, property or delicate information, such as banking and financial services. However, travel and hospitality services, online gaming can benefit from verifying their customers as well.

One of the fastest and most effective ways to verify the identity of their clients is electronic identity verification (EV or eIDV), the technology that enables verification of a person's identity remotely through digital means. This service involves 2 major stages: documentary verification and non-documentary verification.
Documentary verification
Photos of driver's licenсes, passports or other state ID documents are electronically checked to determine authenticity as well as ensuring a document is not forged or altered. A live photo of a customer is then compared to the photo on record for validation with the help of identity verification software.
Non-documentary verification
Customer data is checked against various databases such as credit bureaus, government agencies, utilities, and other data sources to get additional information about the customer and avoid possible risks. With electronic verification, it 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 consumer and service provider.
There are three main reasons for companies to use electronic identity verification:
  • Compliance with regulations, including KYC (know your customer), AML (anti-money laundering). There are real financial penalties for not getting identity verification right.

  • Avoiding risks of fraud by ensuring that government-issued IDs are authentic and unaltered and by validating that the person associated with that ID is physically present.

  • Reducing abandonment rates by providing convenient identification and capturing the client at the point of interest.

Customers, in their turn, have an opportunity to quickly and easily use safe services from the comfort of their own home at any time of day or night.
Taking all this into account, there is no doubt that electronic identity verification is now omnipresent. It is an essential tool for:
  1. Financial institutions to comply with KYC/AML regulations.
  2. Organizations which require fraud protection: online banks and lenders, merchants, payment services, cryptocurrency exchange platforms, online gaming, car rental services etc.
  3. Services that use age verification to restrict access to content classified as being inappropriate for users under a specific age.
Sum&Substance electronic verification solutions were built to help companies across different industries to comply with Anti-Money Laundering (AML), Know Your Customer (KYC), to carry out identity authentication and protect themselves from fraud.
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Data Protection Registration Number: ZA222205. Company Registration Number: 09688671
Sum&Substance is registered with the Information Commissioner's. Office in compliance with the Data Protection Act 1998. Supports 256-bit TLS encryption on every device.
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