Differentiating between identity verification and identity authentication: an essential guide for understanding the two processes.
As businesses increasingly rely on digital platforms for customer acquisition, retention, and service, the trust of consumers becomes essential for both short-term and long-term success. However, the public's perception of the security of digital transactions is often undermined by news stories of data breaches, compliance issues, and identity theft, thereby necessitating robust operational processes and identity theft solutions to safeguard companies from potential vulnerabilities.
Central to maintaining secure online channels is the understanding of the roles of verification and authentication, which are frequently used interchangeably despite their distinct functions. Both processes play a critical part in preventing fraud, ensuring compliance with identity-related regulations, and delivering a smooth and positive customer experience.
To gain a comprehensive grasp of when verification and authentication are applicable, it is paramount to comprehend the stages of the identity lifecycle. The process of establishing a person's identity and authorizing interactions based on that identity throughout various stages is referred to as the "identity lifecycle." This ongoing process starts when a person first verifies their identity during registration and continues with the authentication of that identity, allowing for updates to their attributes and credentials over the course of their relationship with the company.
Explore this free infographic for an intuitive identity lifecycle map.
Identity verification is a type of verification specifically used within the banking industry to combat fraud and identity theft. It is the process of ensuring an unknown user is who they claim to be and verifying the presence of a live person. During the digital onboarding stage of a customer's online journey, identity verification is of utmost importance as it helps establish the authenticity of the user at the outset. Reverification occurs when an existing user encounters issues such as forgetting their password or acquiring a new mobile device, necessitating the reconfirmation of their identity through means such as knowledge-based authentication.
In contrast, authentication is the process of validating a known user's identity to permit access to an account, device, or location. Common authentication types include something the user knows (like a password), something the user has (like a mobile phone or token), and something the user is (biometric data like a fingerprint). Authentication is used when the legitimacy of a person needs to be verified, and their previous personal information is compared against to confirm identity.
The use of continuous authentication, multimodal authentication, and step-up authentication further strengthens the security of online identities. For example, continuous authentication confirms the identity of users throughout an entire session, while multimodal authentication requires the use of multiple biometric authentication modalities for high-security access. Step-up authentication allows for reduced friction by requiring additional authentication only when the risk level increases.
In conclusion, identity verification and authentication are vital components in the fight against digital identity fraud and maintaining the highest level of online identity security. While both processes share the common goal of preventing unauthorized access, they serve unique functions and must be employed strategically to ensure robust cybersecurity measures.
Discover more about biometric authentication in Gartner's latest report
Additional resources:
- General Data Protection Regulation (GDPR)
- Health Insurance Portability and Accountability Act (HIPAA)
- Identity Lifecycle Explanation by Dashlane
- Multi-Factor Authentication by Microsoft
- Fraud Prevention and Identity Theft by the Federal Trade Commission
- Understanding Cybersecurity from the National Cyber Security Alliance
- During digital onboarding, identity verification, a method used in finance to prevent fraud and identity theft, is crucial for establishing the authenticity of a user at the onset.
- Authentication, which involves validating a known user's identity to permit access, is typically done through means such as biometric data, something the user knows, or something the user has.
- As businesses continue their shift towards digital platforms, implementing robust cybersecurity measures like continuous authentication, multimodal authentication, and step-up authentication can significantly bolster the security of online identities.
