Why Identity Checking is Important

Identity theft and associated scams are frequently covered in the press and on television. It’s something which many people are worried about. For businesses, protecting against fraud is crucial. A 2023 report into fraud and identity reveals that 69% of organizations suffered increased fraud losses compared to 2022. Additionally, 35% of consumers perceive themselves to be at risk of fraud, with identity theft identified as the most significant threat. One of the only strategies to prevent fraud is identity verification. Increasingly, identity checking is being applied not only to customers but also to employees. There are many ways of proving someone’s identity, but this usually involves drawing data from various sources, including online data sources, and cross-referencing it with information from credit reference agencies.

Face to Face Identity Verification

Traditionally, identity verification has been done face-to-face, whether checking out potential customers or new employees before offering a job. However, technological advancements have made online identity checks possible. This move was accelerated further by the shift to remote work during the pandemic. Online identity verification typically involves asking the customer or employee to create an account of a website. Companies then check the details they enter against trusted platforms like the Government Gateway portal or using credit reference agencies. There is also a strong possibility that AI could help improve identity verification processes by running checks more quickly. AI can pick up anomalies or inconsistencies more easily than human researchers.

Why Do Businesses Put So Much Effort into Identity Checking?

There are many benefits of rigorous identity verification from an employer’s point of view, but these aren’t always so obvious to the applicant. It’s important to remember that although jumping through identity checking hoops before you start work might be inconvenient, the employer isn’t doing it to annoy you or make life difficult for you. The main reasons that companies spend so much time and money vetting their employees using technology include:

• Cost savings: Automated identity verification processes can significantly reduce losses due to fraud and dishonest activities when compared with an in person or face to face process.
• Fraud prevention: Companies use automated identity checking to try to stay one step ahead of the fraudsters who are constantly refining their techniques.
• Legal compliance: There can be serous legal consequences for employing individuals without proper qualifications or the right to work in the UK.

Each company tailors its identity checking procedures to suit its specific needs, and may use varying checking processes depending on the seniority of the position involved. At a minimum, verifying job applicants’ identities involves requesting key identity documents like passports to confirm their eligibility to work in the UK. Other checks are up to the individual company. Although checking is commonplace, the methods and processes are still widely misunderstood by the general public. That means all companies should be open and transparent with applicants about what sorts of checking they are doing, and why. They should also get permission for more in-depth checks such as credit checking.