With businesses increasingly relying on digital tools and with online transactions and interactions becoming the norm, it’s more important than ever to understand the concepts of digital identification, verification, and authentication.
Identity theft and data crimes have increased significantly and have become a big concern for individuals and businesses. In the first quarter of 2023, nearly six billion data records were exposed during data breaches. These numbers are alarming! Not just that, this scenario also presents a threat to the consumers who share their data online.
Here’s how fast these threats are growing: In 2020, roughly 125 million data records were exposed, a 4,700% increase in just 3 years.
Criminals are finding new loopholes to bypass the automated ID verification system, and for businesses, installing a robust identity verification and authentication process has become important (now more than ever!).
This guide explores the differences between these three terms, provides a definition for digital identification, verification, and authentication, and offers a look at how they are vital for a safe and seamless online customer experience.
What Is Digital Identification?
Identification is the act of proving you are who you claim to be. Online, there are many ways you can go about proving who you are.
One of the most common forms of digital identification is username and password. When creating an account, users are typically required to choose a username and password that they will use to identify themselves. Therefore, the chosen username is your digital identification.
For example: You booked a table at a restaurant under the name ‘Rob’. Once you reach the restaurant, the staff will ask for identification to ensure you are the same person you claim.
When you produce your drivers license, library card, or any ID card to confirm your identity, this is identification.
In the digital world, let’s say you ordered from an ecommerce website. During checkout (often during delivery), you might need to confirm your DOB or email address to the specified authority as proof of identity.
What is Identity Verification?
Verification is one step beyond identification. Verification processes don’t just ask for your identity; you are also asked for proof that the ID that was presented was accurate or not. Verification involves confirming the accuracy of this information.
For example: You must provide your government-authorized identification card to open a bank account. That will be cross-examined, followed by a two-step verification process. They will register your contact number and email address and send a One-time password (OTP) to confirm your contact details.
Identity verification methods differ depending on the work sensitivity and severity of the nature of the business.
What is Digital Identity Authentication?
Authentication, on the other hand, focuses on verifying the user’s identity to grant access to specific resources or services.
Identity authentication is changing the way we secure our personal information. With the increasing number of cyber threats and identity theft cases, identity authentication uses various methods such as biometrics, AI verification, liveliness check, and security questions to ensure that only authorized users can access sensitive data.
With identity authentication, you can confidently conduct online transactions, access your personal accounts, and protect valuable information from falling into the wrong hands. It’s time to embrace this game-changing technology and take control of your digital identities!
Key Differences Between Identification and Authentication
Key Differences | Identification | Authentication |
Definition | establishing who you are (your identity) | The process of verifying your identity. It involves proving that you are indeed who you claim to be. |
Examples | To establish your online presence, provide personal information, such as name, email address, or username. | Provide something only you possess, such as a password, 2FA, KBA, or security question. |
Security Level | It is the first step in gaining access to a system or service | Identification helps establish an online persona; authentication proves it beyond doubt. (Provide something unique to you, such as biometrics – fingerprints, iris scan, etc.) |
Exploring Verification vs Authentication: A Real-Time Scenario
Imagine you are entering an airport or a similar high-security facility). When you approach the entrance and show your government-approved identity card to the security personnel, you are engaging in identification.
Further, this security personnel examines the ID card, verifies the authenticity, and checks for markers to ensure the photo and personal details on the ID card match your physical appearance. This act of confirming details such as security features represents verification.
Finally, if the security personnel are satisfied with the verification, they let you proceed. While inside, if they want to enhance the security check further, they will verify the submitted documents against a government database or may check for biometrics. Once all seems fine, you will clear the security check. This act of further verification and authenticating your documents is considered authentication.
The Shift from Verification to Authentication
Identification, verification, and authentication are distinct yet interconnected concepts that form the foundation of a secure digital presence and transaction. Understanding these concepts and implementing identity authentication methods is vital for a more secure digital presence. With the rise of digital criminal activities, investing in a robust ID authentication process is essential. This will help maintain data privacy and security and enhance user experience.
Book a demo with the leading identity verification software companies to understand why it is essential for your company and how digital verification and authentication safeguard your data.