Identity Proofing – How It Affects You?

identity proofing

What is Identity Proofing?

Identity proofing is the process of confirming identity of an individual and at the same time identifying the attributes which may pose security issues. It is also recognized as identity verification or identity vetting. It’s a real-time, electronic process that validates the personal information provided by a user.

The idea of identity proofing says that before giving someone a password or creating an online account in their name, you must verify that the person really is who he says he is. Identity proofing verifies your identity. For this, it asks you questions based on your personal and financial history.

Identity proofing is the first step to establish your online marketplace account. Online banks and retailers are increasingly using ID proofing as a method of fraud prevention. It can help retailers and consumers protect themselves online.

identity proofing

When is Identity Proofing used?

With the increase in identity theft, internet fraud, and other scams, the security of your business is under huge threat. As a result, identity proofing has become quite important.

You must take certain steps to verify your identity and protect your personal information before creating a marketplace account. Know the early signs of identity theft.

The ID proofing process asks you those questions whose answers only you would be likely to know. Usually, your financial accounts and credit reports are the basis of these questions. Identify proofing solutions ensure that fraudulent users cannot access your sensitive data.

When is Identity Proofing used?

Identity proofing should be used through the entire life cycle of the user. It starts at account origination, then passes on to fraud detection during online transactions. It can also be applied during account termination to guarantee that the person who is trying to close to close your account is really you.

Which companies provide Identity Proofing Services?

The companies which provide identity proofing services are:

  • IDology
  • Experian
  • Equifax
  • Unissant
  • Anakam
  • Socure
  • Trulioo
  • J C Lads

There are many more companies offering identity proofing services.

identity proofing

What are the basic types of Identity Proofing Methods?

There are three types of identity proofing methods:

  • Classic Knowledge-Based Authentication (KBA)
    Classic Knowledge-Based Authentication is the most common and perhaps the weakest method. It uses common questions like “What is your mother’s maiden name?” or “Which city were you born in?”. The answers to these questions are stored safely and recalled at a later date to verify the user’s identity.

This method is very easy to crack because fraudsters can easily guess the answers to these questions by knowing a little bit about the user.

  • Dynamic Knowledge-Based Authentication (KBA)
    Dynamic Knowledge-Based Authentication is better than Classic Knowledge-Based Authentication. In this method, you create your own questions based on your public records or financial records history. Only the consumer knows the answers to these questions. Therefore, a fraudster cannot easily guess the answers since they are dependent on the user’s personal history.

However, this method is not fully secured and is still susceptible to breaches if the data sources get compromised. Dynamic KBA is not yet widely employed, but it is becoming increasingly common.

  • Out-Of-Band (OOB) Proofing
    Out-of-band proofing is the most promising method so far. This is due to the fact that it takes verification completely outside of the vulnerable network. This method provides the user with either a One Time Password (OTP) or verification using a biometric identifier such as voice.

The Out of Band technique is the most secure because it requires multi-factor authentication. This provides an added layer of protection against man-in-the-middle attacks.

Which method is the best?

Use a combination of all these methods instead of depending on a single method for identity proofing. An organization can apply a layered methods approach to verify an identity.

The aim of ID proofing not only involves verifying an identity but also ensuring that identity proofing system does not obstruct end user’s performance experience. It hinders a user’s experience if the system interrupts the workflow at each step to verify his/her identity when there is no apparent risk involved.


The risks of cyber threats and tax fraud have increased in the recent years. As a result, it is now a serious requirement for businesses to incorporate trusted identity proofing systems to protect unauthorized access to online systems and services. Identity proofing and user authentication processes are crucial for maintaining the integrity and security of various services.

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