Security is a major worry for both people and businesses these days. A crucial step in the Know Your Customer (KYC) process is identity verification. In this day of rapidly advancing technology, the method we authenticate our identity has undergone a significant transformation. In the digital age, traditional KYC techniques are no longer applied, and instead, a number of inventive techniques have been developed to verify that you are who you claim to be. The main topic of discussion today is identity verification in the digital age. We’ll go on an exciting journey exploring the development of identity verification from challenging paper documents to easy-to-use digital alternatives that let us tap to access services.
The history of identity verification extends back to clay seals and ancient Mesopotamia. Written signatures, passports, and the usage of fingerprints in 1859 all contributed to its development. Visual identification was made possible by the invention of photography, and the first contemporary passport with a photo ID was issued in 1915. The passport in its current form initially debuted in 1921. Notably, the invention of the computer password in 1960 changed verification, and in the 1990s, users’ identities were verified through security questions.
Digital ID
Fernando Corbat, a computer scientist at the Massachusetts Institute of Technology (MIT), created digital identification for the first time in the 1960s in an effort to protect and preserve personal data because all academics at the university had shared access to a single mainframe.
Transactions were changed when the digital era emerged in the late 20th and early 21st centuries. As more activities shifted online, passwords, PIN codes, and digital signatures started to replace conventional KYC methods of ID verification. People started leaving digital traces once the internet launched in 1983 through the creation of social media profiles, email accounts, and online purchases. Managing digital identities led to the development of identity and access management (IAM) systems, authentication techniques, and privacy-enhancing technologies.
The Current State of ID Verification
The KYC procedure is always being refined to streamline and quicken the verification process. As our digital footprint expands, services use social media activity, transaction trends, and internet use to identify specific people. This kind of verification is common in companies who are worried about online fraud.
Document Verification
Utility bills, driver’s licenses, and passports are examples of traditional documents that still have relevance in the digital age of identity verification. They are often required for the first verification procedures and function as essential identity proof. On the other hand, online document verification requires scanning real papers and use sophisticated algorithms to confirm their legitimacy. Document verification provides an additional degree of protection by identifying fraudulent attempts, such as altered or counterfeit documents.
Biometric Authentication
It is one of the most significant advancements in online identity verification. Because these traits are difficult to reproduce or falsify, biometric identity verification provides great security. Facial recognition, fingerprint scanning, voice biometrics, and retina scanning are biometric authentication technologies that have become commonplace in modern devices and security systems.
Two-factor Authentication & Multi-factor Authentication
When attempting to access an account or platform, users must present two or more forms of identification. Two-factor authentication (2FA) improves digital security. while Multi-factor authentication (MFA) purpose is to improve security by making it more difficult for fraudsters to get access, even if they have or guess the user’s password.
Recognizing the need for comprehensive solutions, many businesses are now opting for platforms that incorporate several authentication methods. They frequently combine document scanning, biometric checks, and digital behavioral analysis for Identity Verification in the Digital Age.
Real-world Implementations of Digital ID
According to McKinsey research, countries that implement digital identification will be able to release tax revenues ranging from 3 to 13% of their GDP by 2030. Some examples of Digital ID implementations to aid in identity verification and reduce the rate of identity theft and cybercrime are as follows.
Australia’s myGovID
India’s Aadhaar
Estonia’s e-residency, e-governance, e-tax, digital ID, i-voting, e-health, and many more
U.S. Digital IDs
Singapore’s SingPass
In Finland, Europe is testing the world’s first digital passport, allowing travelers to cross the border using a digital passport stored on their smartphone rather than a physical passport. The EU intends for at least 80% of Europeans to adopt a digital ID by 2030.
