7 Things to Consider When Choosing the Best ID Verification Software
The sharing economy is young and growing. However, its growth depends on how well companies can verify user identities in the simplest form while keeping the collected data secure to build trust. Which is the most important factor.
It's easier said than done, as there are no standard guidelines for verifying user identities online. Furthermore, privacy and compliance regulations change frequently and abruptly across industries and geographies.
This prompts companies and organizations to rely on the best ID verification software that can surpass biometric forgery, detect fake IDs, accept multiple document types, comply with age-restriction regulations, utilize AI-based multi-stage verification, and support multiple platforms while protecting the community of users.
Companies need to partner with an identity verification provider that is focused on market and regulatory changes and working to meet changing dynamic requirements.
Even after finding one, a few businesses are still determining what to look for or consider when choosing identity verification software.
Stay put, as this post is precisely for business owners like you.
What is ID Verification Software?
Identity verification tools allow companies to verify their users' identities by capturing personally identifiable information (PII). The scanned information is then cross-checked against government databases to distinguish genuine identities from fake ones.
A typical ID verification software uses name, age, and date of birth to verify identity by extracting data using OCR or scanning barcodes, smart card readers, etc.
Additionally, identity verification companies are looking into facial recognition, biometric matching, liveness detection, and AI-based techniques for more robust and secure checking.
Besides the role of authenticating identity for age-restricted purchase of goods, these identity verification solutions play a critical role in complying with KYC (Know Your Customer) and AML (Anti-Money Laundering).
This helps organizations protect their customers, build trust, and secure their business from fraud and data breaches.
Benefits of Using ID Verification Software
1. Trust and Brand Integrity
2. Quick Onboarding and Reducing Friction
Manual ID verification is impractical, time-consuming, and ineffective. Implementing identity verification software reduces friction in onboarding customers and enhances user experience.
3. Global Reach and Compliance
The right identity verification solutions can help companies build a global audience by performing location-specific document verification. By meeting KYC and other compliance regulations, they can prevent data breaches, lawsuits, and huge penalties.
4. Real-time Data and Insights
The best ID verification software uses AI and ML technology to verify users using biometric authentication, ID selfie video verification, liveness detection, facial recognition, etc., and compare them with the photo on the ID. Such techniques deliver instant real-time data to prevent fraud instantly.
5. Reducing Cost
Investing in ID verification software can prove highly beneficial as it can prevent unauthorized access, track illicit transactions, and thus prevent liabilities related to theft and online fraud.
Top 7 Must-have Features in Best ID Verification Software
1. Document Verification
Ensure that your ID verification software can verify a range of identification documents, such as driver's licenses, passports, and other ID cards. This feature ensures that the documents are genuine and untampered.
2. Biometric Verification
Biometric identification adds an extra layer of security to the verification process. Features such as fingerprints and facial patterns are highly secure and difficult to forge. With identity verification tools, organizations can completely rely on their customers' identities.
3. Compliance
Identity verification software acts as the first line of defense against compliance breaches. It primarily safeguards your business by adhering to KYC, AML, Local, State, and National laws regarding age restriction, identity theft, and online fraud.
4. User Experience
Ensure that the ID verification software you choose is simple to use, quick to onboard customers, and easy for your staff and customers to navigate. These attributes will undoubtedly boost the user experience.
ID verification companies must focus on building identity verification tools that are easy to use and efficient instead of rigid and strict.
5. Scalability
The best ID verification software comes with seamless scalability. In other words, it can easily scale to match your existing system requirements. The solution should adapt to your business environment in no time, allowing you to deliver an unmatched user experience.
6. Integrations
The solution you opt for must be able to integrate with various platforms in case your business or user demands. A few identity verification providers have made it easy for their clients to open integration with any software with the help of SDK or API support.
7. Pricing
Identifying your needs as per the organization's goal will help you determine whether a particular solution is suitable and within your budget. Some identity verification solutions come with a one-size-fits-all option, whereas others may allow a vendor or in-house engineer to customize them as per the needs. Overall, the list of features and functionalities will determine the final price of the ID verification software.
Which Industries Benefit from ID Verification Software?
A few industries are more susceptible to identity theft, financial risk, and fraud than others. Let's discuss a handful of industries that can benefit more from identity verification solutions.
1) Financial Services
Banks and financial institutions are always on high alert, as criminals can target vulnerable users and their identities to launder the proceeds of illegal activities. Reliable ID verification software can help with money laundering and financial crime.
2) E-commerce
E-commerce platforms may attract users from across regions and borders. Full-proof identity verification is a must for age-inappropriate products and safeguarding a business's reputation on the web. Identity verification software can assist an E-commerce platform with a smooth customer experience and prevent cart abandonment.
3) Gaming & Gambling
Identity verification software plays a crucial role in restricting underage players from joining games or gambling online. It enhances the experience of verified players to continue their winning streak, safely make in-game purchases, etc.
4) Healthcare
Another prime target of cybercriminals is patients' valuable personal and medical records. Identity verification solutions for the healthcare industry can help with patient onboarding, preventing duplicate records, reducing insurance fraud, and maintaining HIPAA and other such compliances.
5) Travel & Hospitality
Airline tickets, hotel bookings, car rentals, and check-in all require personal details from the customer. Airlines, hotels, and car-sharing companies can hugely benefit from identity verification tools to reduce human errors, avoid delays, and increase customer experience.
Wrapping Up
From verifying new users' profiles to keeping user credentials up to date, a dynamic online identity verification solution can greatly enhance user experience and build trust.
Evaluate the top identity verification companies based on your business requirements, such as features and functionalities, customization options, scalability, and cost.
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