In 2019, law enforcement and private organizations received 3.2 million identity theft and fraud reports. About 1.7 million were fraud-related, while around 20% (651,000) were identity theft complaints.
The following year, over 47% of Americans experienced financial identity theft. Furthermore, consumers lost more than $56 billion to identity theft, ruining the reputation of those businesses that handle these consumers’ data.
As more businesses conduct their transactions online, they should take note of the implications and threats that this could pose to customer data, especially if they’re in sectors such as finance, telecommunications, or healthcare. Fortunately, proper identity proofing and an identity and access management system can help.
At Q5id, our goal is to mitigate identity fraud issues and threats. We’ve created this guide to discuss identity proofing and how it can help protect your organization.
Identity Proofing Explained
Identity proofing refers to the process of verifying an individual’s identity to establish a known entity for future authentication. To accurately determine if a user is the person he claims to be, identity and access management systems gather a person’s unique attributes and create an initial “template” or “profile” as the main point of comparison.
Whenever a person tries to access a system or account, identity management systems compare the identity presented against the originally proven identity at the time of enrollment. This ongoing, highly secure identity authentication process enables users to self-verify in a quick and secure way.
Identity proofing can occur via multiple types of technology. The oldest, and most familiar, is when HR uses two forms of government-issued ID to verify your identity when onboarding new employees. Modern identity proofing systems, such as Q5id’s Proven Identity app, allow new users to a system to remotely verify their identity. This allows for diverse and distributed teams to securely enroll and access business systems, no matter where they are physically located.
The Significance of Identity Proofing
As more businesses utilize remote work, the need for a robust cybersecurity strategy has never been greater. With identity fraud cases on the rise and an increase in other forms of cybercrime, acquiring a reliable identity and access management (IAM) system can address various operational threats. The first step in any modern IAM system is proving the identities being enrolled. Without accurate identity proofing, your business is at risk, while proper identity proofing can provide the following benefits:
Improved operational efficiency and compliance
All in all, identity proofing can significantly improve operational efficiency. Cloud-based identity proofing services make it much easier for you to go about other tasks such as employee onboarding and client verification. Moreover, the quick and secure capabilities of identity and access management solutions will prove especially useful in preventing threats such as synthetic identity fraud.
Optimized client experience
Identity proofing systems make it much easier for you to use those identity templates to provision new users into your company’s systems. Since the onboarding process is simplified, your clients will be able to benefit from a seamless enrollment process. In turn, an improved client experience can provide additional value in retaining clients.
A simplified integration, application, and recording process
With the use of OIDC connectors, integrating a cloud-based identity proofing system can be remarkably easy. For your end-users, it can be as simple as installing an authenticator app on their mobile device. All things considered, this increases a business’ agility to meet client demand and increases their chances of attaining business success.
Steps For Effective Identity Proofing
The National Institute of Standards and Technology (NIST) states that there are three main steps in the identity proofing process.
- Resolution: Differentiation of a person’s identity in the context of a system
- Validation: Collection and verification of a user’s unique information
- Verification: General verification that the user claims to be the person they are
All in all, a reliable identity proofing system can perform all three tasks with no obstructions. When implemented correctly, your organization will be able to run smoothly and securely with a seamless authentication process, enabling you to focus on more important aspects of your business. As you adopt the necessary solutions, it’s also good to be aware of the UK government’s Good Practice Guide (GPG) – even here in the US! – as it provides a set of guidelines that all organizations should follow when validating a person’s identity.
Identity Proofing Matters
Identity proofing and authentication have a significant impact not just on an organization but also on its clients and consumers. Security is at the top of the minds of users and companies. By ensuring your systems are secured with proven identities and multi-factor authentication relying on those identities, you can drastically reduce your risk of a successful attack.
Q5id offers a state-of-the-art cloud-based biometric identity proofing system that gives enterprises confidence that their data and information remain safe. Schedule a meeting and improve your operations—contact us today to get started!