eIDV (Electronic Identity Verification)

eIDV (Electronic Identity Verification) is the use of public and private databases to quickly confirm whether an individual is who they claim to be. eIDV uses personal information such as name, date of birth, Social Security number and address. The result of trying to confirm an individual’s identity could be a match, non-match, or partial match. 

eIDV is used by banks, brokerage firms, financial advisers, and accountants to minimize fraud and comply with know-your-customer laws, privacy laws, anti-money laundering laws and Combating the Financing of Terrorism (CFT) laws. eIDV is also used by insurance companies, governments, retailers, casinos, lawyers, employers, job recruiters, and real estate agents as part of their due diligence processes.

Electronic identity verification matches the data provided by an individual, such as name, date of birth, address, and SSN, against various databases to determine if there is a match.

• Personal documents that can serve as sources of data for the verification service include driver’s licenses, passports, birth certificates, and citizenship certificates.
• Various types of databases, both public and proprietary, may be used in eIDV, including credit bureau data, police data, and vehicle history data.
• Data that can be used as sources of verification include change of address data, postal data, property ownership data, direct marketing data, credit bureau data, electoral roll data, utility data (e.g., phone, natural gas, electricity and/or water service), telecommunications records, and government data (such as driver’s license, passport, national ID and national insurance numbers).

While there is a cost associated with verifying an individual’s identity, it can be less expensive in the long run to avoid doing businesses with individuals who are pretending to be someone they aren’t. For example, eIDV can detect potential fraud if a Social Security number provided by a prospective customer comes back as belonging to a deceased individual. eIDV can also be used to identify prospective customers who are on international watchlists as individuals who are politically exposed, on government sanctions lists, or suspected or convicted of financial crimes.

eIDV can be used not only to verify new customers but also to stay up to date on existing customers. Businesses may need to follow different customer verification procedures depending on their line of business and their country of operation. Businesses pay money for eIDV services based on the number and types of databases searched to verify an individual’s identity.

For an eIDV service to be effective, it must rely on the most up-to-date and high-quality database possible. Some databases may be more accurate than others depending on whether they are updated daily, weekly, monthly or quarterly. Further, the success of a search will depend in part on how comprehensive a database is. Even in a best-case scenario, a database may only cover about 80% of a country’s population.