What is Biometric Identity Verification?
Biometric identity verification is an essential security measure used by regulated industries such as property, finance, and legal to confirm the identity of their customers or clients. With so much of our daily business activities and personal life happening online, a digital identity verification has become a routine process for these industries to prevent fraud, comply with AML/CTF regulations, and conduct proper KYC.
The goal of any identity verification process is to determine whether a person truly is who they claim to be.
This is typically done by comparing identifying information provided by the individual to information from a trusted source, such as a government-issued ID and the information is then cross-referenced to confirm that it matches, and the individual is who they say they are.
The cross-reference that takes place is a critical factor to preventing fraud and identifying deep fakes, spoofing or other identity crimes.
Digital identity verification is becoming a powerful solution to combat these challenges, allowing regulated industries to quickly and securely verify the identity of their customers without the need for face-to-face interactions. There are several methods of digital identity verification, including document verification, biometric verification, and data verification.
However, the use of biometric identity verification is not without challenges. Fraudulent activities such as identity theft, money laundering, and terrorist financing pose significant threats to regulated industries. Software providers and client onboarding systems that do not take a holistic approach to verification and rely on ‘validation’ instead of ‘verification’ can give a false impression of security and equally as dangerous are those companies that do not provide an ongoing monitoring service to keep track of any changes to a customer’s risk profile. In order to combat these threats, businesses must use the right technology to overcome these challenges and comply with strict regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
In the following sections, we will explore identity verification in more detail, discussing how biometric identity verification works and the advantages and limitations in the context of regulated industries.
We will also examine the challenges of fraud prevention, AML compliance, and KYC, and how digital identity verification can help address these challenges to provide a better understanding of the importance of identity verification and how digital identity verification is shaping the future.
In addition, we will discuss how cutting-edge technologies like DynamicID, developed by Verify 365, have transformed the client onboarding process for law firms and other regulated businesses. DynamicID provides a secure and efficient solution for verifying the identity of new clients in real-time while also detecting and preventing fraud attempts.
Since its launch, DynamicID has been successfully used by numerous law firms, empowering clients to verify their identity from anywhere, without the need to visit their lawyer’s office, making the onboarding process more convenient and efficient.
Biometric Identity Verification: How it works and why it’s important for regulated industries
Biometric identity verification offers a higher level of assurance than traditional methods such as face to face verification, making it a secure and convenient way to verify customer identities during onboarding and verification.
This process involves comparing an individual’s biometric data, such as facial recognition or fingerprint scans, to their official identification documents using AI algorithms or highly trained human experts. Compared to manual comparisons by untrained staff, biometric verification provides greater accuracy and security.
In contrast to traditional verification methods, which can be cumbersome and offer lower security, biometrics are unique to each individual and cannot be easily replicated, forged, or stolen. This makes them highly secure and easy for customers to use, as they cannot forget or lose their biometric identity.
What are the benefits of using biometric identity verification
Enhanced security and fraud prevention:
Fraud prevention is of paramount importance to any business, however regulated industries must evidence processes and measures to show a risk based approach. According to the National Crime Agency, money laundering costs the UK economy £100bn every year. Digital identity verification using biometric technology provides enhanced security measures to ensure that only authorised individuals have access to sensitive information. Biometric authentication is more secure than traditional authentication methods such as passwords, PINs, or security questions, as biometric traits cannot be easily replicated or stolen. This reduces the risk of identity theft, fraud, and other security breaches.
Improved compliance with AML and KYC regulations:
Regulated industries are subject to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, which require them to verify the identity of their customers and ensure they are not involved in any illegal activities. Digital identity verification using biometric technology helps these industries comply with AML and KYC regulations by providing a more robust and reliable verification process. This not only helps prevent financial crime but also ensures that the organisations are not penalised for non-compliance. Legal practitioners and law firms are seen as attractive targets for money laundering due to the position of trust they hold, and in 2021, the Solicitors Regulation Authority issued fines of £160,000 due to poor AML compliance.
Earlier this year, HM Land Registry launched its first Digital Identity Standard, which provides a safe harbor for law firms when identifying their clients digitally. This new standard for digital biometric identity verification marks an exciting milestone towards a truly digital conveyancing process and provides a clear blueprint for the development of a range of secure and intuitive solutions to streamline the client onboarding process.
Faster and more efficient onboarding:
Traditionally, onboarding new clients or customers in regulated industries can be a time-consuming and labor-intensive process. Digital identity verification using biometric technology streamlines the onboarding process by automating identity verification, reducing manual intervention, and providing a faster and more efficient experience for both the organisation and the customer. This not only saves time and resources but also enhances customer satisfaction.
Increased accessibility and inclusivity:
Digital identity verification using biometric technology increases accessibility and inclusivity by removing barriers that prevent some customers from accessing services. Biometric authentication only requires a device with a camera, making it accessible to people with disabilities, older individuals, and those who lack specialised hardware or technology skills. This technology helps organisations offer more inclusive services to customers from diverse backgrounds.
Improved user experience:
Digital identity verification using biometric technology provides a seamless and effortless user experience. Biometric technology like DynamicID provides clear instructions through platforms such as Verify 365 on how to capture biometric data and upload it to the platform, eliminating the need for back-and-forth correspondence or office visits. Additionally, biometric verification can be done quickly and accurately, reducing the time needed to verify a client’s identity and improving the overall client experience.Biometric technology also simplifies the verification process, reducing the steps required for identity verification. This results in a more positive and user-friendly experience for customers, which enhances customer loyalty and satisfaction.
Cost-effective and scalable solution:
Adopting biometric identity verification technology not only enhances compliance practices and reduces risk, but it can also improve operational efficiency, scalability, and provide a significant return on investment. By streamlining the client onboarding process, firms can onboard clients faster, smarter and better resulting in a cost-effective and scalable solution for regulated industries. Biometric authentication reduces the need for manual intervention and can be easily integrated into existing systems, reducing costs and increasing efficiency. Additionally, biometric technology can be scaled to accommodate a growing customer base or increased demand, making it a flexible and adaptable solution that ultimately leads to faster turnaround times, lower costs, and higher revenue potential for firms.
DynamicID: The most advanced biometric ID verification solution
DynamicID, the most advanced identity verification technology on the market, developed by Verify 365, has revolutionised the client onboarding process for hundreds of law firms and other regulated businesses since its launch in January 2023.
Near-Field Communication (NFC)
One of the key features of DynamicID is its use of advanced biometric techniques, including Near-Field Communication (NFC) technology, which allows clients to easily and securely verify their ID documents using their mobile devices. This has empowered clients to verify their identity from anywhere, without the need to visit their lawyer’s office, making the onboarding process more convenient and efficient.
End-to-end onboarding process
DynamicID is built into Verify 365’s digital onboarding platform, which streamlines the client onboarding process, enabling law firms to quickly and confidently verify the identity of their clients while also assessing the level of risk associated with each new client. DynamicID’s automated verification capabilities, powered by AI, delivers 95% of results in under 10 seconds, making the process fair, fast, and accurate for firms who want to quickly know who their clients are.
The most advanced ID verification technology
DynamicID also includes a range of verification methods, such as document verification, biometric verification, and data and face comparison, ensuring that law firms can confidently know their clients. The platform supports over 14,000 documents in 220 countries, including passports, residence permits and driving licenses and offers biometric verification that matches a photo ID to facial biometrics captured in the same flow whilst conducting liveness test and visual integrity tests in real-time.
The fraud detection technology included in DynamicID leverages phone and device intelligence to accurately distinguish between trusted and fraudulent behavior at onboarding, enabling law firms to harness intelligence related to devices, locations, identities, and threats without impacting the experience of genuine users.
DynamicID: Real-World Success Stories in Biometric Identity Verification
Since its launch, DynamicID has empowered law firms to transform their client onboarding process. By providing a secure, efficient, and convenient solution for verifying the identity of new clients, DynamicID has helped law firms to grow and expand into new markets while meeting diverse regulatory standards with ease.
Multi-service law firm switched to Dynamic ID for faster AML checks
Taylor Fordyce Law Firm was struggling with the time-consuming and expensive process of conducting KYC and AML compliance checks manually. This process was hindering their growth and creating a significant resource drain. By implementing Verify 365 DynamicID solution, the law firm was able to automate their KYC and AML checks, reducing the need for dedicated departments and freeing up resources to focus on growth. Additionally, DynamicID solution provided a more comprehensive view of their clients’ identities, reducing the risk of fraud and improving compliance.
Streamlining KYC and AML for a Law Firm with Global Clients:
Twinwood Law Practice, a multi service firm with a diverse client base operating across international jurisdictions found itself facing a significant challenge in conducting KYC and AML checks. With clients from a range of backgrounds and countries, the firm needed to ensure compliance with complex and ever-changing regulations. However, relying on manual processes to carry out KYC and AML compliance checks was inefficient, time-consuming, and prone to errors. The firm needed a more reliable and scalable solution to ensure it was meeting regulatory requirements and protecting its clients’ interests. This was creating compliance risks and hindering their ability to expand. By implementing biometric identity technology through Verify 365 DynamicID solution, the firm was able to stay on top of the changing compliance landscape and meet the evolving requirements in multiple geographies. This improved compliance, reduced their risk of regulatory fines and allowed them to securely continue expanding into new markets.
Property Firm finds success with Verify 365 Dynamic ID Solution
Starck Uberoi Solicitors was struggling with their current AML software provider. Realising the need for a more efficient and effective solution, the law firm decided to switch to Verify 365 and its Enterprise platform, which includes DynamicID solution. The law firm was particularly drawn to DynamicID, which combines facial biometrics and NFC-based document checks with a liveness test and visual authenticity, providing an additional layer of security and protection against fraud. After the switch to Verify 365, the law firm saw a significant improvement in its client onboarding process. The Dynamic ID solution was particularly effective in verifying the identity of international clients, streamlining the onboarding process and reducing the risk of fraud.
UK Experts Bring Cutting-Edge ID Verification to the Forefront
DynamicID’s success is a testament to the expertise and dedication of Verify 365’s team of experts. In addition to its advanced biometric capabilities, DynamicID is also highly customisable, allowing businesses to tailor the verification process to their specific needs. This includes the ability to set custom risk thresholds, choose which biometric factors to use, and set up additional security measures such as two-factor authentication.
The company is also open to partnering with other digital onboarding vendors who are interested in implementing DynamicID into their own technology platforms.
DynamicID, developed in the UK, is a cutting-edge identity verification technology that can help businesses quickly and confidently verify the identity of their customers. The platform includes a suite of global verifications and signals to verify identities with minimum friction, catch sophisticated fraud attacks, and address compliance needs at scale.
With DynamicID, businesses can work with a trusted partner that has been serving the world’s largest companies for over a decade with scalable and innovative identity products. The platform offers an end-to-end solution that can help businesses grow and expand into new markets, while meeting diverse regulatory standards with ease.