Electronic identification, or e-id, makes use of private databases and information to verify an individual’s identity. It uses personal information such as social security number, name, address, date of birth, and other data fields. The results of an e-id search could result in a match, partial match, or non-match.
How e-ID works
E-ID is a digital solution for proving the identity of people or organizations remotely. You can use it to view services or access benefits provided by businesses or government authorities for various purposes, such as mobile payments. In addition to login and authentication, electronic identification gives users the ability or option to use a digital signature to sign electronic documents.
Breaking Down E-ID
Various businesses, such as financial institutions, brokerage firms, accounting firms, and others, use electronic identification to prevent fraud. They must comply with privacy laws, Know-Your-Customer laws, and Anti-Money Laundering laws. Furthermore, they use electronic identification to fight the financing of terrorism.
Insurance companies, casinos, governments, employers, real estate agents, and retailers also use e-id as an integral part of their due diligence processes. This digital solution matches user information against various databases to determine whether there is a match.
Benefits of E-IDs
There is a cost that comes with verifying a user’s identity. In the long run, however, this cost is usually worth it when it comes to avoiding the costs associated with identity theft. Electronic identification, for example, can help organizations detect a situation where an individual uses the social security number belonging to a deceased person.
This digital solution can also help to identify users on international watch lists, those convicted of financial crimes, and those on government sanctions. In addition to verifying new customers, businesses can use e-id to stay up to date with their existing customers. Depending on their line of business, an organization may need to follow different methods of verification.
For an electronic identification solution to be effective, it must use high-quality and up-to-date databases. It is important to understand that some databases are more accurate than others. Some databases update daily or weekly, while others do it monthly or quarterly. Additionally, success will depend on how comprehensive a certain database is.
E-ID is one of the most effective tools when it comes to facilitating electronic transactions and securing access to online services. Secure e-id is a critical enabler of data protection, in addition to helping to prevent online fraud. These are important considerations where businesses, citizens, and governments need strong data protection laws.