Electronic Identity Verification

Electronic ID Verification

Electronic ID verification, or EIDV, is a method of confirming the identity of an individual, usually using a combination of public information and private databases online. With EIDV, the customer will provide standard details like date of birth, address or National Insurance number, and this information will be cross-referenced with the customer’s electronic footprint.

In an EIDV search, the SmartSearch tool will filter through your customer’s digital trail, and if the details on file correspond with those found, you’ll have a match. However, if we’re unable to find enough evidence to confirm the individual’s ID, there could be a partial-match, or a no match at all.  

Accessing and Querying Personal or Business Credit Reports

When it comes to managing your credit, having easy access to your credit reports is crucial. Whether you need a personal credit report or a business credit report, here's how to get started:

Accessing Your Personal Credit Report

1. Visit a Reliable Credit Bureau: Head to a recognized credit bureau's website to access your credit report. Many bureaus offer this service online, often for free once a year.

2. Create an Account or Log in: You may need to register an account with the service provider. If you already have an account, simply log in with your credentials.

3. Download Your Report: Follow the instructions provided to download your personal credit report instantly.

Querying Your Personal Credit Report

• Use Online Help Options: If you have any questions about your credit report, many credit bureaus provide support through online help sections. Navigate to these through their website.

• Contact Customer Support: For more in-depth queries, find their customer service contact details, usually available on the website, and reach out via email or phone.

Obtaining Your Business Credit Report

1. Download the Request Form: Check the website of a credit bureau for a business credit report request form.

2. Complete and Submit the Form: Fill out the required information, then send the completed form via mail or email as directed, ensuring you follow any specific instructions provided.

3. Receive Your Report: After submission, you will receive your business credit report through the method specified by the service.
   
   

By following these steps, you can easily access and query your credit reports, ensuring you stay informed about your credit standing.

EIDV and Trust 

Handling electronic ID checks requires an element of trust – both from businesses and from their customers. It’s crucial for consumers to trust the security of the tool or recipient they’re submitting their information to, while businesses must be able to trust the integrity of their own EIDV software.

This is a particularly significant issue within the banking industry. According to recent figures from Which?, more than 3,700 branches have closed since 2015, which lead to an inevitable uptake in customers moving their banking online. Operating without an in-person presence makes trust an even more important consideration for banks, and ensuring the secure management of electronic ID checks is a key example of how this trust can be built.

In response to this turn of events, we developed a Trust Barometer, designed to help our customers monitor the condition of the industry. 

This convenient tool pools any up-to-date social media mentions of every major high street and challenger bank. The sentiment of this content is then analysed, to provide an indication of which banks are the most and least trusted by their customers.

So, is there a trust issue among businesses when it comes to electronic ID checks? EIDV is widely considered to be one of the most secure, efficient ways of confirming a person’s identity. And yet, SmartSearch research* has revealed that while almost 80% of businesses now perform electronic ID verification, 47% of senior decision-makers admit there is a level of distrust in automated identity checks, while 21% don’t trust automation at all. 

Since the pandemic began in early 2020, thousands of firms in the UK (and the wider world) have been forced to automate their processes, yet more than one in five businesses admits to relying on analogue processes for their AML checks.

Now we’ve outlined the basics of electronic ID verification, we hope you’ll be feeling better equipped to make an informed decision for your business. If you’re interested in reading more about electronic ID checks, take a look at this free downloadable guide, where you can find a more detailed breakdown of EIDV, along with expert advice on implementing electronic ID verification processes. 

Who uses EIDV and why?

Due to its fast turnaround and accurate results, EIDV has become increasingly popular with financial institutions adhering to AML regulations. Companies that might rely on EIDV include banks, investment firms, financial advisers, insurance companies and even estate agents.

Telecommunications
In the telecommunications industry, companies are leveraging identity verification to significantly improve customer onboarding processes. By ensuring accurate identification, telecom companies can reduce fraud and enhance service delivery, ultimately leading to a higher pass rate and customer satisfaction.

Retail & Small and Medium Enterprises (SMEs)
For retail and SMEs, identity verification plays a crucial role in the customer buying process. It ensures that payment transactions are secure and seamless, which not only boosts customer confidence but also maximizes revenue. A smooth payment journey means happier customers and fewer abandoned carts.

Banks and Financial Services
Banks and financial services benefit from identity verification by gaining valuable insights at the point of onboarding. This enables them to efficiently verify customer identities, make informed risk management decisions, and comply with regulatory requirements, all of which are essential in today’s financial landscape.

Utilities
Utility companies use identity verification to check addresses and verify payment details for new accounts. This helps in reducing fraud and ensuring the accuracy of direct debit information, leading to a more secure and reliable service for customers.

Insurance
In the insurance sector, quick and accurate verification of customer identities is vital, especially when processing claims. It ensures that claims are legitimate and that the customer is indeed who they claim to be, thus maintaining the integrity of the insurance process.

Automotive
The automotive industry benefits from identity verification through enhanced customer service and streamlined processes. By efficiently verifying customer identities, automotive companies can provide a superior service experience, leading to increased trust and satisfaction among customers.

Why is EIDV used in AML checks?

EIDV is ideal for carrying out the KYC element of AML checks, as well as further customer due diligence, like sanctions and PEP screenings. This is because an electronic ID search will not only verify their identity, but sift through the financial history of an individual, and identify anything which could make them a high-risk customer, like previous convictions of fraud or financial crime.

Key Benefits of Identity Verification Services

• Ensure Compliance with Regulations: Our identity verification services streamline the process of meeting regulatory requirements. By examining multiple data points like name, address, and bank details, you'll easily comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations.

• Access Comprehensive Data: Benefit from a vast database of over 1 billion data items, enabling you to support identity verification with unparalleled accuracy. This ensures safe processing of billions of transactions annually, providing confidence in the thoroughness of identity checks.

• Seamless Integration: Enhance your existing systems without any disruption. Choose between secure, cloud-based access through API integration or opt for a user-friendly web interface. This flexibility ensures that your business operations—and your customers’ experience—remain uninterrupted.

• Tailor-Made Solutions: Customize your identity verification package to suit your specific needs. By selecting the right combination of verification methods, you can bolster trust in the outcomes. A single supplier arrangement offers additional value and efficiency, making the process not only effective but also cost-efficient.
  
  

By integrating these comprehensive identity verification services, businesses can mitigate risks and improve operational efficiency while maintaining strict compliance with industry regulations."

EIDV vs. Manual Checks

While manual ID checks require physical documents from the customer, EIDV relies wholly on information found online, on both public websites and private databases. Faking an electronic identity is far more difficult than providing fraudulent documents in person – so EIDV ensures that no one slips through the net. In fact, there hasn’t been a single case of fraud recorded, where EIDV has been performed correctly.

Why is EIDV becoming more popular?

With customer contact being severely limited by COVID-19 restrictions world-over, an increasing number of firms in the finance sector are turning to EIDV over manual checks. In fact, industry reports indicate that that EIDV’s compound annual growth rate could be as much as 13.1% from 2020-2025.

EIDV with SmartSearch 

­­­­­­SmartSearch is proud to offer an extremely thorough form of EIDV: TripleCheck. The Triple Check process intelligently combines data verification, the validation of customer documents and facial recognition for an incredibly comprehensive identity check.

Comprised of three distinct levels, the TripleCheck leaves no stone unturned. The first tier involves an AML check, screening for PEPs and historic sanctions. The second level uses a combination of photo ID, live selfie video and biometric facial comparison to carry out facial recognition. An extensive digital fraud check is then completed, as the third and final phase.

This market-leading solution will revolutionise your KYC process, and prevent you from wasting precious resources on manual checks.

Speak to an AML and compliance expert today to discover more.

*Source: https://www.which.co.uk/money/banking/switching-your-bank/bank-branch-closures-is-your-local-bank-closing-a28n44c8z0h5 - information correct at time of writing, December 2020. 

**Research carried out with 1,500 consumers and 500 senior decision makers by TLF on behalf of SmartSearch.