Identity Proofing Techniques
December 4, 2024
This article explores the evolution of identity proofing techniques, highlighting the shift from traditional in-person verification methods to modern digital solutions.In this article, you will learn more about the essential steps involved in the KYC verification process, from initial customer identification to advanced document verification techniques such as Machine-Readable Zone (MRZ) reading and chip verification. The article emphasizes how these processes enhance security and streamline customer onboarding, ensuring regulatory compliance while improving the overall customer experience. Additionally, it highlights the role of technologies like the MOBILE SCAN SDK and MOBILE CHIP SDK in making KYC verification more efficient and accurate.
Steps in the KYC Verification Process
1.Initial Customer Identification and Information Collection
The first step in the KYC verification process involves gathering essential information from the customer to establish their identity. This typically includes personal details such as the customer’s full name, date of birth, address, contact information, and in some cases, financial details.
This step is crucial for creating an initial profile of the customer, which will be used throughout the verification process. Information is collected through digital forms, in-person meetings, or mobile apps, and is typically compared against internal databases and external sources to flag any potential risks.
2.
Identity Document Verification and Validation Techniques
Once customer information is collected, the next step is to verify the authenticity of the identity documents provided. Customers are often required to submit government-issued identification, such as a passport, driver’s license, or national ID card. Businesses use various methods and technologies to verify these documents, ensuring that they are genuine and not altered or forged.
These validation techniques help ensure that the person submitting the documents is indeed who they claim to be, reducing the risk of identity fraud.
The Role of Machine-Readable Zone (MRZ) and Chip Verification
The Machine-Readable Zone (MRZ) is a section found on many identity documents, such as passports and certain ID cards, that contains important information encoded in a standardized format. MRZs allow machines to quickly scan and read an identity holders information and is the upstream step for the chip verification which subsequently enables an efficient and secure identity verification.
The MRZ typically includes details such as the document holder’s name, document number, nationality, date of birth and date of expiry. Our MRZ Scanner & Parser extracts all data from the MRZ. The document number, date of birth and date of expiry are used to access the chip in eMRTDs (electronic Machine-Readable Travel Documents). The authenticity of the document can be ensured by means of chip verification. By using the secure photo from the chip, a secure verification can be made with the owner performing a face match.
By leveraging MRZ reading and chip verification, businesses can verify customer identities efficiently and with a high degree of accuracy, speeding up the KYC process while ensuring data integrity.
KYC Verification and Customer Onboarding
KYC verification is a critical component of the customer onboarding process. After verifying the customer’s identity, businesses can proceed with the rest of the onboarding process, such as account creation and service activation. The goal of KYC verification during onboarding is to strike a balance between security and a smooth user experience.
An efficient KYC process minimizes friction during onboarding by automating much of the identity verification steps, allowing customers to complete the process quickly and with minimal inconvenience. For businesses, this results in faster onboarding times, higher customer satisfaction, and lower dropout rates.
Steps in the KYC Verification Process with the MOBILE CHIP SDK
A customer whose identity needs to be verified simply downloads and launches your company’s app, where the MOBILE CHIP SDK is integrated.
With the MOBILE SCAN SDK integrated into your app, a customer can easily scan the Machine-Readable Zone (MRZ) of an identity document.
With the data from the MRZ, the app logs on to the chip of an identity document, and reads additional information.
The secure eMRTD Verifier Server accesses the chip to verify its integrity and the identity document authenticity.
The verification process is completed. You may continue with your customer onboarding process.
Steps in the KYC Verification Process – Conclusion and Outlook
In summary, the steps in the KYC verification process – from initial customer identification to the use of MRZ reading, chip verification and document validation techniques – play a pivotal role in ensuring regulatory compliance and securing the onboarding process. A streamlined KYC verification system not only helps prevent fraud but also creates a smoother and more trustworthy experience for new customers.
Learn more on the Steps in the KYC Verification Process
More articles in our series “Mastering KYC Verification”
