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Online identity verification is the process of digitally confirming the identity of a user. Whether you’re reviewing an account application or approving an online transaction, you need to know that the person you’re dealing with is who they claim to be.
Technology can help bring traditional identification verification methods online, such as checking a photo ID. Additionally, people and organizations have more digital “fingerprints” than ever before, which digital identity solutions can use to authenticate users with increased accuracy and less friction.
What do online identity verification methods help solve?
A well-designed and implemented online identity verification process can help address fraud, compliance and customer demands all at once.
Verifying someone’s identity when they first create an account could be an important part of the know your customer (KYC) and customer identification program (CIP) requirements. From that moment on, continuous authentication can help detect and prevent fraud.
Balancing the need for identity verification with a smooth online experience can be challenging. Customers may abandon a cart if identification requirements aren’t easy and fast, and may look for new services altogether if they’re repeatedly asked to authenticate themselves. But the challenge also presents an opportunity for companies that can leverage online identity verification services and methods to verify users’ identities accurately and discreetly.
Benefits of online identity verification
Beyond helping prevent fraud, online identity verification delivers several business benefits.
Improve customer onboarding
Automated identity verification enables organizations to approve legitimate customers more quickly, reducing manual reviews and accelerating account opening.
Reduce fraud
Layered identity verification helps detect identity theft, synthetic identity fraud, account opening fraud and account takeover before losses occur.
Enhance customer experience
Low-friction verification methods—including behavioral biometrics and risk-based authentication—can reduce unnecessary authentication challenges for trusted users while maintaining strong security.
Support regulatory compliance
Identity verification helps organizations meet Know Your Customer (KYC), Customer Identification Program (CIP) and other regulatory requirements designed to prevent financial crime.
Increase operational efficiency
Automated verification reduces the need for manual document reviews and allows fraud teams to focus on higher-risk cases.
What data sources are used for identity verification?
ather than relying on a single piece of information, modern identity verification solutions combine multiple trusted data sources to improve confidence and accuracy.
These may include:
- Credit bureau data to verify identity attributes
- Public records that help validate identity information
- Government-issued identification documents, such as driver’s licenses and passports
- Mobile carrier data that confirms phone ownership and account history
- Email intelligence to evaluate the legitimacy and age of an email address
- Device intelligence, including IP address, browser and device characteristics
- Behavioral biometrics that analyze how users interact with websites or mobile apps
- Customer-provided information collected during onboarding
Using multiple sources helps organizations verify identities more accurately while making it more difficult for fraudsters to exploit stolen or synthetic identities.
Examples of online identity verification methods
There are multiple ways to verify someone’s identity, but some of the most popular online identity verification methods include:
- Personally identifiable information (PII): A person’s name, address, email address and phone number can be checked against trusted databases to help confirm their identity.
- Mobile network operator data: Consumers upload a photo of a government-issued document, such as a driver’s license, passport, visa or national ID card. Verification technologies may validate security features and use facial recognition with liveness detection to confirm the document belongs to the person presenting it.
- Document verification: Consumers upload a photo of a government-issued document, such as a driver’s license, passport, visa or national ID card. Verification technologies may validate security features and use facial recognition with liveness detection to confirm the document belongs to the person presenting it.
- One-time passwords: A unique code is sent to a user’s phone or email to confirm they have access to the registered account or device.
- Multifactor authentication (MFA): Existing users verify their identity using two or more authentication factors, such as a password combined with a fingerprint, facial recognition or a one-time passcode.
- Knowledge-based authentication (KBA): Users answer questions based on personal or historical information, such as previous addresses or credit-related data, to help verify their identity.
- Behavioral analysis: Behavioral biometrics evaluate how a person interacts with a website or mobile app—including typing patterns, scrolling behavior and mouse movements—to distinguish legitimate users from potential fraudsters. Environmental signals, such as location and device characteristics, may also be analyzed, creating a low-friction verification experience.
To keep up with increasing consumer and business demand, online identity verification processes may use artificial intelligence and machine learning techniques to complement the digital and manual processes.
Some methods, such as consistency checks on a device and behavioral biometric assessments, can also help offer an “invisible” approach to verification. Even small behavioral traits, such as a user’s scrolling style or finger pressure, could be important data points.
These invisible methods may be welcomed as a low-friction approach by consumers, who are increasingly aware of the lack of security that comes from only using passwords as an identity verification method. In Experian’s 2024 U.S. Identity and Fraud Report, 71 percent of consumers said physical biometrics are most important for a better online experience, followed by PIN codes sent to a mobile device (70 percent) and behavioral biometrics (66 percent).
Traditional vs. digital identity verification
| Traditional identity verification | Digital identity verification |
| Conducted in person | Conducted remotely from virtually anywhere |
| Manual inspection of physical documents | Automated document and identity verification |
| Limited identity data sources | Multiple digital identity signals and trusted data sources |
| Slower onboarding | Near real-time verification |
| Manual fraud detection | AI- and analytics-driven fraud detection |
| Higher operational effort | Automated, scalable workflows |
While traditional identity verification continues to play an important role in some industries, digital identity verification enables organizations to deliver faster customer experiences while improving fraud prevention and operational efficiency.
How we can help
Experian is a global leader in identity verification and fraud detection services. We offer a layered approach that draws on different verification methods, including credit, device, non-traditional and user-provided data. Step-up authentication can add additional verification requirements based on how risky a user appears or the action they’re trying to take.
The approach gives trusted users a lower-friction experience while helping organizations detect multiple types of fraud and address Customer Identification Program (CIP) discrepancies.
Customers are also assigned a unique and persistent identity, creating a consolidated view across multiple data sources. These identity resolution capabilities help organizations recognize legitimate customers, personalize experiences and make more informed risk decisions throughout the customer lifecycle
Frequently asked questions about identity verification
Identity verification is the process of confirming that someone is who they claim to be using trusted identity data, documents, biometrics or other verification methods.
Identity verification helps organizations reduce fraud, protect customer accounts, comply with regulations and provide secure digital experiences.
Online identity verification allows organizations to verify an individual’s identity remotely using digital technologies instead of requiring an in-person visit.
Identity verification establishes that a person is who they claim to be, typically when opening an account or beginning a relationship. Authentication confirms that an existing user is authorized to access an account or complete a transaction.
