Verification hub illustration

OneSpan Identity Verification FAQ

Acquire more customers, reduce abandonment, and mitigate fraud with digital identity verification services 

Verification hub illustration

OneSpan Identity Verification FAQ

What is identity verification?

Also referred to as identity proofing or ID verification, identity verification confirms that an identity exists in the real world, and that the individual presenting that identity is its true owner. In financial services, identity verification focuses on new, or unknown, customers interacting with a business for the first time, such as during an account opening, application, registration, or enrollment process.

What is digital identity verification?

In today’s world, businesses need to be confident in the identity of their customers, especially during remote interactions. Digital identity verification refers to the process of verifying the identity of a customer using digital technology, such as machines that can scan ID documents, or software which can be integrated into a mobile app and which allow potential customers to verify their identity in a remote setting.

How does identity verification work?

There are multiple identity verification capabilities available in the market today, and there is no one-size-fits all approach, as requirements and risk tolerances vary per organization. OneSpan Identity Verification can verify the validity of an individual’s identity, and detect identity fraud, using an entirely digital process.

Here’s how digital identity verification works using a mobile device:

With digital identity verification, businesses can verify the identity of a potential customer directly from the customer’s mobile phone. Using a mobile app or mobile browser, the customer first takes a photo of their ID document (e.g. driver’s license, passport, National ID). Behind the scenes, artificial intelligence and advanced authenticity algorithms instantly analyze the image to determine whether the ID document is fraudulent or genuine. Once the authenticity of the ID document is confirmed, facial biometric verification using a live selfie image can be used to determine if the person attempting to open an account, register, or enroll for something, is the person listed on the document.

The entire process is quick and seamless – for both the business and the customer.

Additionally, the customer can provide an eSignature in the same session, if required as part of a larger agreement process. This is known as Secure Agreement Automation, and comes with a comprehensive audit trail that spans both identity verification and eSignature.

How can identity verification impact my business?

Identity verification enables businesses, especially financial institutions, to acquire more customers, reduce abandonment, mitigate fraud, maintain compliance, and earn consumer trust.

Unfortunately, inadequate ID verification services are often easily exploited by fraudsters and erode consumer trust. That’s why businesses need multi-layered identity and risk-based authentication solutions that can tell the difference between a customer and a bad actor, from account origination to ongoing maintenance – and every transaction in between.

What identity documents do you process?

We process identity documents (driver’s licenses, passports, National IDs) from around the globe. Here is a map of our worldwide identity verification coverage.

How long does it take to verify an ID?

Timing varies depending on the type of identity verification method being performed. Many customers receive responses in a matter of seconds.

What is KYC?

Know Your Customer and Know Your Client guidelines require businesses, notably financial institutions, to make a concerted effort to verify the identity, suitability, and risks involved with establishing a relationship with a customer or client.

Are KYC controls mandatory?

Yes. There are multiple identity verification methods that can be used to prove an individual’s identity, including identity document verification, biometric verification, and knowledge-based authentication (KBA). With fraud on the rise, KYC controls are an essential part of every financial institution’s business.

What is Knowledge-Based Authentication (KBA)?

Knowledge-based authentication is an identity verification method based on information an individual knows (often based on their credit file). There are two forms of KBA – dynamic (out-of-wallet) and static (shared secrets). OneSpan uses dynamic KBA as one of our identity verification methods.

What does out-of-wallet mean?

Out-of-wallet is a term used to describe the types of questions being presented to an individual or applicant. The questions are designed so that the answers could not be found by someone if they were to steal your wallet or purse.

What is the difference between identity verification and authentication?

Identity verification typically involves interacting with someone for the first time. The goal of identity verification is to verify that the real-world identity exists, and the individual is the true owner of that identity.

Authentication involves an interaction with a previously established identity. The goal of authentication is to prove that the individual is the true owner of that previously established identity.

Do I get a full audit trail back with granular details?

Yes. OneSpan Identity Verification provides a comprehensive audit trail. This includes the ID check method used and result of the verification (pass/fail, reason, facial match results, number of attempts).

Can I integrate to one API, or do I need a different API for each verification method?

OneSpan Identity Verification leverages a single API integration that negates the need to manage other tools. This helps reduce implementation costs and complexity, so you can focus on what matters most – accurately verifying customers at scale, growing your digital channel, and protecting against fraud.