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ID verification services are the most important in making online businesses secure and it helps to make sure that the transactions made online are authentic. It helps to ensure that the identity of the person is legit and the credentials they used for making online transactions are authentic and really belongs to them. ID verification ensures that the identity of the person is completely verified before businesses end up providing their services to the wrong person. This process is known as the digital KYC process and in order to ensure a smooth KYC process, it is important to know what types of IDs are used for the verifications. There are many types of IDs and the digital solution must be trained on the types of IDs. There are IDs that make it easier to digitally verify them and there are types of IDs that are a bit demanding to verify.
Read this blog further to know more about the ID verification process of paper IDs and digital IDs and which is better.
The Paper-based IDs
In the technologically advanced world, you might think that gone are the days of paper-based ID documents but you are far from right. Many countries are still using paper ID documents. India and Italy are both the countries that are still issuing paper-based ID cards to their citizens. The Italians have prohibited their citizens from laminating their ID cards. The authorities claim that they make IDs in such a way that it is harder to forge. The papers material and the paper-based IDs contain some secret features to make Paper IDs impossible to doctor.
In India, the paper IDs are called “Aadhar Cards”. Another form of identification in the country is a PAN card which is used to make payments. Both of these cards are important ID proof and yet they both lack the basic technology to avoid identity theft and financial crimes. Pan cards even lack the magnetic stripe so it is even demanding to verify it.
According to research, paper-based IDs have put people at increased risk as compared to digital IDs. Paper-based IDs are more vulnerable to ID theft as they are easily forged even after the safety feature the authorities claim is sufficient. What makes paper-based IDs even more of a hassle is that its inability to cater to machine-readable technology and it makes it hard for a business to verify these IDs for businesses that are based online.
Digital ID documents
In this fast-paced world, digital IDs sound like a more accurate option to provide a faultless digital ID verification process. The digital IDs could allow fraud prevention and can assist businesses to put a stop to the scams. The IDs can be analysed by machine and contain MRZ and QR codes. These codes contain the displayed information. The digital ID verification solution extracts the information provided on the MRZ code or QR code and checks its authenticity against the provided information on the ID documents. It is harder to forge the MRZ codes and if the information on the card does not match the MRZ code it means the card has been forged.
Now there are even more advanced IDs available that are based on NFC technology, These cards contain a chip and the information of the person is encrypted in the chip. It is next to impossible to alter the information on the chip. The NFC enabled device is able to capture the information and analyse it against the ID documents information. This is the most advanced and most secure method of ID verification and it is enabled by digital IDs.
ID Verification Service with Digital IDs
The digital IDs allow the ID verification process to occur online. Online businesses can benefit from it and as the world is moving more towards the digital means, the digital solution would be the best approach. There is now software that easily forges paper-based IDs while digital IDs are not as easily forged. The best way to verify the paper-based IDs would be to train the AI with the paper-based document type but still, it leaves plenty of room for forgery. The digital DIs have made the ID verification process faster and more accurate. Now more and more businesses are KYC compliant and they have satisfied customers.