What is identity verification in cybersecurity

Identity verification in cybersecurity is the process used to confirm that a user is who they claim to be, before granting them access to a system, application or data. Its goal is to ensure that only the right people can log in, perform actions or access sensitive information.

What is the procedure for identity verification in cybersecurity?

A user presents their identifying information, which is then compared against trusted data sources to confirm its authenticity.

Identity verification and authentication are at times used interchangeably, but they are two fundamentally different mechanisms.

Identity verification checks if a person’s claimed identity is real. This usually happens when someone first creates an account or signs up for a service. As part of the verification process, the person may be asked to upload a government issued ID, answer personal questions or provide other proof to confirm they are who they claim to be.

On the other hand, identity authentication happens after verification, every time someone tries to log in. It makes sure that the person trying to access the system is the same person who was verified earlier.

Let's use a simple analogy to make the difference clearer:

Identity verification is like showing your ID to open a bank account, whereas authentication is like entering your PIN each time you want to withdraw money from that account.

There are different ways to securely and accurately verify digital identities:

• Biometrics: This method uses unique biological characteristics to verify identity, such as a scan of a person’s fingerprint, face or iris.
• Encrypted selfies: Users may be asked to take a selfie, which is then compared against a photo on a legitimate ID document.
• Government-issued ID cards: Advanced systems process scanned copies of official ID cards to check for security features, tampering and authenticity against government databases.
• Device-based verification tokens: One-time codes or cryptographic keys that are tied to a user’s trusted device (e.g., smartphones, hardware tokens) are used to verify ownership.

What happens during an online identity verification?

Here’s a breakdown of a typical, biometric-based online identity verification process:

1. The person enters basic information like their name, email and ID number on a website or app.
2. They’re asked to take a photo or upload a scan of a government-issued ID like a passport or driver’s license.
3. The system then asks the user to take a live selfie using their phone or webcam. The user may also be instructed to blink, smile or move their head to confirm that they’re not using a static photo.
4. The system uses facial recognition software to compare the selfie to the photo on the ID.
5. In some cases, the system may also check the person’s details against public records or watchlists.
6. If everything checks out, the user is verified and can move forward. If not, they may be asked to retry or submit more info.

Identity verification is used in several areas to prevent fraud, account takeovers and data breaches.

For example, here are common stages where it’s enabled:

• During account sign-up or registration
• When resetting a password or recovering an account
• Before giving access to high-risk or sensitive data or apps, like tier-zero assets
• When approving financial transactions
• While granting access to secure networks or internal systems

Here are some industries and organizations where it’s especially important:

• Banking and financial services: To stop fraud and comply with KYC (Know Your Customer) rules
• Healthcare: To protect patient data and comply with privacy laws (like HIPAA)
• Government services: For secure citizen access to online services
• Education: For remote exam monitoring and secure student access
• E-commerce: To verify buyers and prevent payment fraud
• Telecommunications: To prevent SIM swapping and identity theft
• Cybersecurity firms: As part of zero-trust security practices

You’d need at least the following components to build a strong and secure identity verification system:

• Optical Character Recognition (OCR): Used to read and extract information from ID documents like passports or driver’s licenses.
• Biometric tools: Facial recognition, fingerprint scanning or iris detection to match real-time data with official records.
• Authentication software: Helps confirm a user’s identity using passwords, tokens or attributes.
• Integration with trusted sources: Connects with government databases or trusted third parties to verify the legitimacy of documents and details.
• Encryption and data security: Ensures that all user data is stored and transferred securely to prevent leaks or misuse.
• Bot detection: Mechanisms to identify and prevent automated scripts or bots from trying to bypass the verification process.

If identity verification is not done properly, it can open the door to serious security problems, such as:

• Account takeovers: Hackers can gain access to user accounts and misuse personal or business information.
• Data breaches: Weak checks may let attackers into systems where they can steal sensitive data.
• Financial fraud: Fraudsters can perform unauthorized transactions, apply for loans or drain accounts.
• Phishing and social engineering: Misconfigured systems make it easier for attackers to impersonate real users.
• Reputation damage: A breach caused by weak identity security can harm user trust and damage a brand's image.

Next, let’s explore some of the main advantages of having a strong identity verification system:

1. Safer access to systems

Only verified users can log in or access important data, which helps prevent unauthorized entry.

2. Compliance with security regulations

Strong identity checks help companies meet legal and industry requirements like GDPR or HIPAA.

3. Improved user trust

When people know their data is being protected, they’re more likely to trust and use the service.

4. Reduced risk of data breaches

Fewer fake accounts and better verification checks mean lower chances of a malicious actor slipping through and stealing data.

Finally, here’s a checklist you can use to pick the right provider for secure and reliable identity verification:

• Make sure they support biometric and document-based verification.
• Check if they use encryption to protect user data.
• Look for providers that offer real-time liveness detection.
• Confirm that they integrate with trusted databases and sources.
• Choose a vendor that complies with global data privacy laws like GDPR or CCPA.
• See if they offer multi-factor authentication (MFA) options.
• Ask about their fraud detection and alert features.
• Review how easy their system is to use for both users and admins.
• Check their uptime, reliability and support options.
• Read customer reviews and look for proven use cases.

Identity verification helps confirm that users are who they say they are before allowing them access to systems, data or services. When done properly, it reduces fraud, stops unauthorized access and builds trust between users and service providers.