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30th August 2023

Identity Verification: What is identity verification?

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As a business, knowing who you’re working with or selling to is so important! A large part of this is being able to easily, accurately and quickly verify the identity of individuals during online transactions.

But what does identity mean in the context of online transactions? What is identity verification, and how does it work?

We'll explore the ins and outs of identity verification, its importance and how it's shaping the digital landscape.

What is identity in an online transaction?

Your identity – who you are – is different to your online identity. When completing an online transaction, ‘identity’ is the data used to verify who you are, such as:

  • Full name
  • Date of birth
  • Address and postcode
  • Mobile number
  • National Insurance Number
  • Bank details

Taking each of these alone would not help in providing an ID. For example, many people share the same name or live at a single address. But together, they form your digital identity.

People use this for everything from opening a bank account to making online purchases. It’s why it’s so important to keep your online data secure.

What is identity verification?

When someone buys something, the store must confirm that the buyer is really the person they say they are. Identity verification helps validate the authenticity of a persons identity.

This usually involves comparing a user-provided identity against an authoritative source, like a government database.

Financial institutions, online platforms, e-commerce sites, and government agencies widely use ID verification to prevent identity fraud. Companies can also use it to verify new suppliers or customers through Know Your Customer (KYC) checks.

Identity fraud is used to access services and steal information. It can also be used to enable larger criminal activities like human trafficking and money laundering.

How does ID verification work?

The ID verification process begins when someone submits personal information online. This could be when creating a new online account, buying an item online, or accessing sensitive data through an online portal.

This information is then compared against our data. Our data comes from reliable sources such as; an internal database, public record or credit reporting agency.

We also may carry out additional identity checks. These could check for discrepancies in the information provided, cross-reference against known fraudulent activities, or verify the user's identity documents.

Some systems may also use biometrics - fingerprints or facial recognition - as part of their digital identity verification process.

Why is identity verification important?

Identity verification is crucial for several reasons, both for users and businesses:

  • Preventing fraud: By verifying the identities of users, businesses can prevent fraudulent activities like identity theft and financial fraud. Learn more about fraud prevention.
  • Building trust: Customers tend to trust platforms that prioritize security. By ensuring users are who they claim to be, businesses can build trust and provide a safe online environment.
  • Complying with regulations: Many industries are required by law to perform identity verification. This is to prevent money laundering and other criminal activities, such as the financial sector.

Identity verification providers

Identity verification providers - such as - offer services that can help businesses verify the identities of their customers quickly and efficiently.

These use various data sources and advanced technologies to perform identity checks. This provides a seamless experience for users with a high level of security.

At, our verification services include:

ID Verification: The Future of Digital Transactions

With more online transactions, the role of ID verification in maintaining secure digital spaces is becoming ever more critical.

Businesses and individuals must understand and use identity verification to ensure their online activities' safety and integrity.

Identity verification is an essential aspect of online transactions, offering protection against fraud, building trust, and ensuring regulatory compliance.

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