How to Verify an ID Document

Key takeaways
 

ID document verification is a critical shield against digital fraud, with 72% of companies experiencing identity theft attempts. Technologies like OCR, NFC, and facial biometrics are transforming authentication processes, offering AI-integrated solutions to detect deepfakes, synthetic identities, and other cyber threats with near 99.9% accuracy.

The KYC and AML regulatory ecosystem is constantly evolving, making identity verification a strategic necessity rather than an option. Companies implementing advanced technologies like Didit not only prevent fraud but also improve onboarding times by up to 70%, enhancing customer experience and reducing operational costs.

Technological evolution has democratized ID verification: over 150 countries have integrated NFC chips into official documents, and solutions like eKYC allow for remote user authentication. This digital transformation benefits both businesses (market expansion, fraud reduction) and users (instant verification, no travel required).

Facial biometrics and liveness tests represent the future of identity verification. Through mathematical analysis of unique facial traits and AI algorithms, these technologies can combat sophisticated fraud tactics like deepfakes, pre-recorded videos, and masks, ensuring secure and precise authentication.

Identity verification or KYC (Know Your Customer) processes have become the most solid shield for companies looking to protect themselves against digital fraud. Therefore, the verification of ID documents is no longer a bureaucratic issue but a necessity that can mark the fine line between protection and vulnerability for many obligated subjects facing increasing frauds like synthetic identity or deepfakes.

The numbers speak for themselves: 72% of companies have experienced identity fraud attempts in the past year. This makes verifying an ID document, as part of a more comprehensive authentication process, a necessity for companies. Thus, the current digital ecosystem demands solutions that guarantee authenticity in every interaction, while the regulatory framework for KYC and anti-money laundering (AML) becomes more complex every day.

In this article, we'll delve into the most advanced methods to verify an ID document, and how technologies like Didit are revolutionizing identity verification processes with a free, unlimited, and permanent solution.

Methods for Verifying ID Documents Online

Not all ID document verification methods offer the same level of security and precision. According to a recent report by Javelin Strategy & Research, companies faced identity fraud losses of $23,000 million in 2023, an increase of 13% compared to the previous year. Technological advancements have allowed for the development of solutions integrating artificial intelligence, facial recognition, and biometrics, as well as optical recognition techniques, completely transforming how obligated subjects validate their users' identities.

The evolution of verification technologies has radically transformed how organizations protect their integrity, integrating artificial intelligence, facial recognition, and biometric techniques to create virtually unbeatable security barriers.

OCR (Optical Character Recognition)

Optical Character Recognition (OCR) has become a fundamental development in automating document verification. This technology enables extracting and digitizing the printed or handwritten information on official documents instantly and accurately, turning physical documents into digital ones.

The OCR process involves a detailed analysis of each document, capturing and processing characters through image processing algorithms. Some advanced algorithms, like those used by Didit, can detect possible alterations or inconsistencies in the document's structure, providing an additional layer of security.

What are the main advantages of OCR technology for ID document verification?

• Reduces verification times
• Eliminates manual transcription errors
• Allows for quick initial documentation validation
• Capable of working in different languages
• Detects various document formats
• Comparison with official databases

Statistics show that companies implementing OCR technology in their identity verification and document verification processes improve onboarding times by up to 70%, resulting in better customer experience.

NFC (Near Field Communication)

Near Field Communication (NFC) technology can reduce fraud to zero during the process of verifying ID documents and identity verification. This development enables secure data transmission between devices placed very close, usually within a distance of less than 4 centimeters.

And why do we say NFC technology reduces fraud to zero? Modern official documents incorporate NFC chips that store biometric information and personal data securely and almost impossible to alter. Thus, when a smartphone with NFC technology (over 90% of the current market) is brought close to the document, the chip wirelessly and securely transmits the holder's information, allowing for instant, precise, and secure verification. Cryptographic validation ensures the information comes from an official source and has not been tampered with.

Currently, over 150 countries worldwide have integrated NFC chips into some of their official documents, widely extended in Europe, North America, and Australia.

What advantages does NFC technology offer against identity fraud?

• Data encryption
• Digital signature verification
• Real-time biometric comparison
• Detection of counterfeit documents
• Prevention against impersonation

Facial Biometrics

Facial biometrics is a technology capable of revolutionizing identity verification. While traditional KYC systems compared documentation to photographs, new facial recognition technologies leverage artificial intelligence to securely identify and authenticate individuals.

This technology is based on the mathematical analysis of the unique characteristics of the human face, transforming physical traits into digital patterns that can be processed, compared, and verified in milliseconds. Liveness tests, active or passive, in the case of Didit, add an extra layer of security to the verifications.

Advanced algorithms and artificial intelligence can combat various types of fraud: pre-recorded videos, photographs, masks, or deepfakes. This way, the authentication process is secured with near 99.9% accuracy.

How to Verify ID Documents: The Cases of DNI and Passport

Practically any company classified as an obligated subject has faced the question of how to verify their clients' ID documents. We usually talk about sectors related to finance and the economy, although increasingly, companies in traveltech, insurtech, or mobility need to verify their users' documentation as well. Verifying our users' ID documents is a regulatory issue: KYC is the first line of defense against anti-money laundering and terrorism financing.

In many sectors, traditional identity verification methods are still used, which require physical presence at a branch or office. In this process, workers verify the ownership of the person presenting the DNI, passport, or other ID, and a photocopy or scan is made. Then, they must be stored ensuring compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe or the corresponding regulation.

However, there's a fully digital alternative that allows for online and remote identity verification: we're talking about eKYC. This way, DNI or passports can be verified from a distance, in a user-friendly and secure manner, without the need for people to travel. This process, key within digital onboarding, is fully regulated by different standards. In Europe, eIDAS and eIDAS 2 pave the way for European digital identity and electronic identity verification.

How Does Online Document Verification Work?

The process of remote or online document verification is very straightforward and has the same validity as doing it in person. For this, the user must verify their official documentation (DNI, passport, driver's license, or residence permit), pass the facial recognition test, and within seconds, automatically, they will have their identity fully verified to enjoy the contracted services.

Benefits of Verifying DNI or Passport Online

Verifying users' identities online brings numerous benefits, both for businesses and users. To achieve this, an identity verification or KYC software is required.

What advantages will institutions enjoy by integrating an eKYC or remote verification service? While benefits will be specific to each industry, some common ones are:

• They can offer a secure, online, and guaranteed service, helping them comply with various KYC and AML regulations in different regions.
• Market expansion, as they can offer their services beyond their physical influence zone.
• Reduction of fraud and issues related to manual verification.
• Cost reduction and optimization (up to 90%)
• Uninterrupted verification service.

For users, this system also proposes significant benefits:

• No need to travel to a physical location to complete the verification process.
• Can do it anytime, anywhere.
• Better UX as it's an identity verification that takes just seconds.

Didit: A Free and Unlimited Solution for Remote ID Document Verification

Didit is a digital identity company that's revolutionizing the identity verification market by offering a free and unlimited KYC solution. Thanks to this, companies can verify their clients' ID documents remotely without facing the high costs of similar technologies.

How does Didit work? Our document verification service can work with official documentation from over 220 countries and territories, performing real-time checks on the documentation through advanced algorithms to detect inconsistencies and extract the necessary data.

Once this phase is passed, the facial recognition test is conducted. Through biometrics, a passive liveness test, and personalized artificial intelligence, we match the person's face with that on the documentation, ensuring authentication.

Additionally, Didit offers an optional AML Screening service, for businesses that need it, ensuring 360º regulatory compliance and combating various types of financial fraud.