Identity is a very valuable commodity today; possibly more so now than ever before. That’s because an interconnected world has led to a boom in fraud, committed by people who pretend to be someone or something they are not. Although proving your own identity may be time consuming and take some effort, there are some reasons why verifying who you are is essential; these are the top five:

1. Passport

The most obvious, and for many citizens the most important document an individual will ever own. The fact that it takes a lot of effort to obtain a passport makes it a valuable form of identification in itself; this is true whether or not the holder is trying to travel to another country. One of the passport’s stand out means of verification is the counter signatory; this is written testimony that the applicant is who they say they are.

The counter signatory themselves must have a certain standing; Members of Parliament, Justices of the Peace, and Ministers of Religion, for instance. Having someone of importance to vouch for you is possibly the most important part of a passport application, and therefore still stands for something, even in the digital world.

2. Bank Account

Before allowing an individual to become a customer with them, a bank or other financial institution must verify that person’s identity. Failure to do so leaves the bank open to fraud; a person may have a history of financial crime, and be using a false identity to avoid detection. As well as the possibility that such a customer might defraud the bank, it is also liable to very large fines incurred for lack of due diligence.

3. Paying Tax

Verification of identity is essential when registering with tax authorities; this is particularly true when doing so online. Although Her Majesty’s Revenue and Customs, along with other national tax authorities, offer online tax return submissions, this internet-based service means they are themselves vulnerable to identity theft. If the tax authority is misled, this could mean it does not receive the right amount of tax, or sends out demand to innocent third parties, which could end in their prosecution.

4. Credit

Credit history is a very important part of a person’s identity. When applying for a credit card or mortgage, the provider will firstly refer to a recognised credit ratings organisation; the lower a person’s score, the less choice they have in terms of being offered credit. Much like a bank, however, if the credit history belongs to someone else, any potential lender leaves themselves open to fraud; therefore, identity verification is crucial when obtaining credit.

5. State benefits

Most countries in the developed world have some kind of welfare system, whereby citizens in certain circumstances are entitled to financial help. In order to qualify for any such benefit, however, it is essential to verify your identity. This will entail National Insurance Number, plus a number of other particulars; some of these will determine what type or level of benefit is applicable, others how it is paid out. Identity verification in these situations is, therefore, absolutely crucial.