Identity Verification Methods


24 Jun

Fraud is a very big threat to the success of a business. Fraud leads to loss of revenue that is the main pillar of a business. Fraud can be in many forms. Some of the types of frauds are financial statement fraud, asset misappropriation, theft of intellectual property and trade secrets, and consumer fraud. Fraud can also be caused by people who masquerade as customers but their intention is to defraud a company. The most target companies by fraudsters are financial institutions and eCommerce companies. A company needs to adopt identity verification techniques to prevent the losses that arise from fraud. There are different categories of identity verification methods.


One of the fraud verification methods is knowledge-based authentication. This method uses security questions to verify the identity of a person. The person should answer the security question correctly. Security questions are easy and thus the right person cannot have a hard time answering them. However, there is a specific time limit set for the person supposed to answer the question. This is an additional safeguard. Knowledge-based authentication is the easiest identity verification method.


Another method of verifying the identity of a person is two-factor authentication. When you want to access your account on a website you are required to input your username and password in addition to provide a form of identification. The form of personal identification you are supposed to provide is referred to as a token. The token can be in the form of a code sent by the authenticating agency. Usually, people go through this two-factor verification method when creating an account or resetting password to their accounts.


The third identity verification method at this product is the credit bureau based authentication. You need to have one or more of the major credit bureaus to be authenticated through this method. This identity verification method is used by companies that store a large amount of credit information of their consumers. Also, there is the database method. Database methods verify the identity of a person by using data from different sources. The companies that use this identity verification method source the data from social media and offline databases.


Database methods help eliminate the need for manual reviews. This method of identity verification is used to evaluate the risk a person poses to a company. The fifth identity verification method is online verification. This method uses techniques such as artificial intelligence, computer vision, biometrics, and human review to determine if the ID present is the one the government issue to him or her. For more facts and information about background screening, go to http://www.dictionary.com/browse/check.

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