Selecting the Ideal Verification Service Provider - Comprehensive Guide 2024
In the ever-evolving digital landscape, the need for comprehensive identity verification solutions has become paramount for businesses operating on a global scale. When selecting an Identity Verification Vendor (IDV), several key factors should be considered to ensure secure, compliant, and seamless identity verification while addressing regional regulatory nuances and diverse customer bases.
Security and Fraud Prevention
A robust IDV must demonstrate strong resistance to various attacks such as fake or synthetic identities, phishing, social engineering, and account takeovers. Integrated fraud detection mechanisms, behaviour monitoring, and risk-based assessment capabilities are essential. Verifiable external certifications like ISO27001 can provide assurance of the vendor's commitment to security.
Regulatory Compliance
Ensuring the solution adheres to relevant global and local regulations such as AML, KYC, CDD, GDPR, CCPA, and personal data protection laws in the countries of operation is crucial. Independent third-party certifications or audit evidence may be required to verify compliance.
Accuracy and Coverage
The vendor should provide high verification accuracy, ideally above 95% for data extraction and 99% for determining ID authenticity. It should support a broad range of global ID document types to accommodate diverse customer bases worldwide.
Efficiency and User Experience
Solutions must minimise friction in the customer journey with fast verification speeds and automation to reduce manual intervention. Multi-channel support and smooth interaction enhance adoption and satisfaction.
Integration and Scalability
The platform should integrate easily with existing authentication, authorisation, and business systems, supporting preferred development frameworks and providing robust tools and documentation. It must scale to handle current and future customer volumes globally without increased complexity or cost.
Customizability and Flexibility
The ability to mix and match different verification methods tailored to industry-specific needs is essential. Avoid one-size-fits-all platforms lacking key industry functionalities.
Data Privacy and PII Handling
Vendors that minimise data retention, process data securely (on-device processing preferred), encrypt data, anonymize transmitted data, and manage PII storage compliantly can help reduce liability.
Supplier Support and Stability
Assess vendor support services, including responsiveness in solving performance or fraud issues, ongoing solution management, and proven stability across different operating environments.
Proven Maturity
Requiring vendors to provide data about their solution’s track record, testing methodologies, and performance metrics can ensure reliability and trustworthiness.
When choosing an IDV, additional questions to ask include whether they have technology to tackle sophisticated biometric fraud, device fingerprinting, AI that detects photoshopped documents, and how they store data. A vendor should also have access to a legal team specializing in AML regulations across the world.
In many countries, companies working with finance are legally obligated to employ such software. Vendors may also offer transaction monitoring, which allows companies to easily track transactions and detect suspicious activities.
Easy integration options such as WebSDK, MobileSDK, API, verification link or QR-code are essential for seamless implementation. It's worth checking whether the provider is familiar with different regional regulations (e.g., 6AMLD, BSA, etc.).
User experience features for smooth registration include fast fail, autocapture, language and country support, and a workflow builder. There's no definitive answer for the best identity verification service, but factors to consider include compliance, security, user experience, ease of integration, customer support, accuracy, reliability, and pricing.
Technology plays a critical role in data-and-cloud-computing-based identity verification solutions, as integrated fraud detection mechanisms, risk-based assessment capabilities, and AI that detects photoshopped documents are essential elements. A vendor's commitment to security can be demonstrated through verifiable certifications like ISO27001.
To ensure compliance with global and local regulations such as AML, KYC, CDD, GDPR, CCPA, and personal data protection laws in the countries of operation, IDV vendors should provide independent third-party certifications or audit evidence proving their adherence to these regulations.
