Incidents of identity theft are ever on the rise. We all recall the October 2021 Amazon data breach in which a hacker leaked sensitive information pertaining to Twitch users.
The fact that this breach successfully targeted a member of the Big Five tech companies proved just how ambitious online hackers can be. However, the incident also highlighted the significance of implementing robust identity verification mechanisms.
Identity verification can help to stop hackers in their tracks by flagging threats long before they happen. But as you shall find, hacker-proofing your website isn’t the only benefit of integrating powerful identity verification measures. These interventions can provide a host of other advantages, particularly to ecommerce retailers and e-banking service providers.
Read below as we unpack everything there is to know about identity verification.
Introducing Identity Verification
Identity verification became a topical issue in the wake of the 2021 Amazon data breach. But as an internet user who’s encountering this phrase for the first time, you’re probably wondering – what is identity verification?
Now, identity verification is a process through which website owners or administrators ensure that an entity trying to log into a system is a real person and is authorized to use the services they’re trying to access. It typically entails the entity behind the log-in attempts providing certain information that grants them access to a website or ecommerce platform.
Difference Between Identity Verification and Identity Authentication
The phrases “identity verification” and “identity authentication” may often appear interchangeably. That’s because they both serve a common bottom line. However, verification and authentication can differ slightly depending on the specific contexts in which they’re used.
Identity verification aims at confirming that a person is who they say they are before granting them access to a system.
A real-life example is where you’d issue law enforcement officers with your national identity card. The officers would simply match your name and face with the details on your ID card to verify your identity.
Authentication goes way deeper. It focuses on establishing if an entity has permission to access certain areas or use certain services.
Using the same illustration above, flashing your ID card may prove that you’re the person whose credentials appear on the card. But it may not necessarily grant you access beyond certain checkpoints, for example, during security situations where only emergency service providers have the right of passage.
What Are The Benefits Of Online Identity Verification?
1. Fraud Detection and Prevention
As already hinted, fraud prevention is the primary benefit of identity verification. The internet is replete with hackers who’re actively looking for websites to breach.
Without robust identity verification systems in place, hackers can easily gain access to an online platform and steal sensitive information. The stolen data may subsequently be used to commit more elaborate frauds, subjecting online users to even graver risks.
2. Web Traffic Monitoring
Identity verification may also be useful in tracking web traffic. It’s a metric used particularly by ecommerce retailers and social networking companies to monitor the number and frequency of visitors to their websites.
The collected information can help to improve various aspects of service delivery.
3. Improving Brand Appeal
The most effective identity verification methods are those that utilize multi-layered approaches whereby a user provides more than one set of information to log into a system. While this may be rather time-consuming, it’s ultimately rewarding in terms of improving a brand’s appeal.
Online users are naturally endeared to websites with multi-layered sign-in steps. It proves that the companies behind such platforms take all the requisite measures to guarantee their clients’ online safety.
4. Ensuring Regulatory Compliance
Identity verification can help ensure regulatory compliance. That’s especially true for industries where such compliance is mandatory, like financial and security. In these sectors, the law requires every player to comply with certain regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Besides, identity verification may be useful in achieving compliance for businesses that offer age-restricted services, such as cannabis, alcohol, and adult content.
What Are The Methods Of Online Identity Verification?
1. Password-based Verification
Passwords provide the easiest way to verify your identity on the internet. This method basically entails inputting a username and password to access an online platform.
2. Two-factor Verification
Passwords may offer the quickest way to access online platforms. But they’re also the most vulnerable to hacking. That explains why experts recommend implementing an additional security layer known as two-factor verification/authentication.
To go past the two-factor verification step, an entity must enter special codes sent to their mobile phones or email addresses. The codes are typically auto-generated the moment the person provides their correct passwords.
3. Knowledge-based Verification
Knowledge-based verification requires a person to accurately answer a series of questions before gaining access to a website.
The questions are usually simple enough. However, the secret answers must correspond with the responses the user had already fed into the platform they’re trying to access.
4. Biometric Verification
This is arguably the most advanced online identity verification technology. That’s because biometric details are almost impossible to corrupt.
Websites differ in the types of biometric information they may require. However, commonly used techniques include facial recognition, fingerprinting, voice recognition, and iris scanning.
Final Word
The benefits of identity verification are immense. Whether you’re an ecommerce retailer, social media platform, or e-banking service provider, it’s imperative to implement powerful verification measures. That’s the only way to keep hackers at bay while also elevating your clients’ online experience.
