Identity theft rates within Canada have been steadily increasing since 2010, coming to a head in 2019, with 4 in 10 Canadians reporting that they were identity theft victims. These thefts can range from stealing financial and insurance identities to medical and even criminal identity theft.
Many will have heard of the terms identification, verification, and authentication to prevent identity theft and fraud.
While sometimes used interchangeably, the differences between these three terms and the solutions offered to help facilitate protection against identity theft at each of these steps vary greatly.
At 1-ID, our machine-assisted solutions are designed to help provide secure and automated identify proofing and authentication 24/7 for businesses across all sectors. Before we get into each solution’s details, it’s essential first to understand the differences between identification, verification, and authentication and how they’re protected in different ways.
Identification, Verification, Authentication Definitions & Differences
When it comes to cybersecurity and protecting yourself, your business, and your clients against identity theft and fraud, each and every step of the identity-proofing process is critical.
As technology advances and cybercriminals, fraudsters, and bad-actors become more sophisticated, the threat of data and privacy breaches is becoming ever more prevalent. Preventing criminal access to sensitive information when making purchases from vendors online, supplying medical information, and while banking can be challenging.
As fraud tactics evolve, so too must identification, verification, and authentication processes. Below is a breakdown of each term and how 1-ID can address these concerns, prevent fraud, and provide security.
Identification
The definition of identification is the action of proving a person or user’s identity.
Essentially, it asks users, “who are you?”
Personal identification can be stolen and compromised both on and offline if another person claims to be someone they’re not through using an official document with the victim’s picture and personal information.
Offline, this is more difficult since physical identification is displayed and compared with the person in real-time. Online, identity theft by bad actors is simple. All they have to do is steal an individual’s basic information, such as their phone number, email address, billing address, or social security number.
Through e-mail phishing and other scams, bad actors can easily extract someone’s personal information. Sometimes, this sensitive information can even be purchased by criminals online via the dark web, ranging from a simple email address to user passwords, date of birth, and even banking information.
For businesses that require an exchange of sensitive information, checking and verifying IDs is a must. However, with identity theft continually rising, identification alone is no longer enough to secure safe access to both you and your customers.
Verification
In addition to asking users who they are, verification takes it to the next level by asking them, “are you who you say you are?”
Verification establishes validity. Your identity can be checked and confirmed by matching identifying documents such as drivers’ licenses, passports, and other government-issued IDs with government and financial institutions.
For a long time, humans have been demarking the thin line between fraudulent and real identification. However, human-led approaches run the risk of human-led error. They also tend to take longer and be less reliable than checks conducted with software. Businesses and institutions that rely on human-led processes have longer processing times and expose themselves and their clients to more risk.
1-ID’s Identification & Verification Solutions
Don’t leave your customers waiting for human-led approaches that expose them to more risk. 1-ID’s machine-assisted processes deliver a safe, secure, and entirely automated solution to your identification and verification challenges.
To verify documents and identification, 1-ID’s automated APIs detect, extract, and verify data against our existing information on file to validate with 100% accuracy. Our AI-powered scanning technology prevents blurry photos, poor photo angles, and light reflection from being problems, allowing documents and identification to be detected, identified and verified in seconds.
With 1-ID, you can establish client identity, assess potential risks, and stay compliant with KYC regulations, all with one digital solution.
Authentication vs Identification & Verification
Authentication is the final and most complex of the three processes. This step asks the user, “ are you really who you say you are?”
Verification is conducted only once when a user’s information has been uploaded, identified, and compared against an existing database of identifying information. On the other hand, authentication is conducted every time they attempt to log in or access a system.
While a user may already be identified and verified, they’re still authenticated each time they log in to ensure that they genuinely are who they claim to be.
Standard authentication processes include entering a username or password, answering security questions, or through ID badges and cards.
Unfortunately, these processes remain ever vulnerable. Organized criminal groups can skim and mine information off social media profiles, through email and phishing scams, and even through discarded documents and mail.
1-ID’s Authentication Solutions
1-ID protects against fraud and authenticates all forms of identification through comprehensive, multi-factor checks. Matching phone numbers to wireless service provider data, virtual in-person video conferences, and in-person meetings are just some of the ways 1-ID takes authentication one step further.
For authenticating documents remotely and automatically, 1-ID’s AI-powered scanning technology parses MRZ data, checks for image doctoring, and validates content attributes to verify passports. 1-ID’s automated APIs detect, extract, and verify data against our existing information on file to validate with 100% accuracy.
Whether your objective is to minimize fraud, prevent identity theft, or approve and verify customers faster, 1-ID provides one comprehensive, straightforward solution for all of your identification, verification, and authentication needs.
How 1-ID Can Help You
Whether you’re in eCommerce, health, or finance, our automated identification, verification, and authentication services can help you expand into the future.
With Canadian identity theft and fraud on the rise, businesses and institutions need a reliable, accessible, and easily implemented method to combat fraud and identity theft. No matter the sector, 1-ID can help you bring on clients and merchants faster and more securely by reducing friction, minimizing fraud, and decreasing costs while staying completely compliant.
Onboard quicker, reduce processing times and scale your business with our 1-ID solutions.
For more information, click here to find out which solution best fits your business.
