Why You Need Automated Identity Checks



Identity verification is crucial in today's digital world. With the rise of online transactions, remote working, and virtual communication, it's essential to ensure that people are who they say they are. Automated identity checks can help prevent fraud, ensure compliance, and protect businesses and customers.

In this blog, we'll explore why you need automated identity checks, the benefits of such checks, and how they work.

Automated Identity Checks

Identity verification is necessary for several reasons. First, it helps prevent fraud. Fraudsters can use stolen or fake identities to commit crimes such as identity theft, money laundering, and terrorist financing. Automated identity checks can help detect fake or stolen identities by verifying personal information against databases and other sources.

Second, identity verification is essential for regulatory compliance. Many industries are subject to strict regulations that require identity verification of customers or employees. For example, financial institutions must comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. 

Finally, identity verification is essential for customer trust. Customers want to know that their personal information is secure and that the businesses they deal with are legitimate. By verifying customer identities, companies can build trust with their customers and reduce the risk of fraud or data breaches.

The Benefits of Automated Identity Checks

Automated identity checks offer several benefits over manual identity checks. First, they're faster and more efficient. Manual identity checks can be time-consuming and require many resources. With automated identity checks, businesses can verify identities in seconds without manual intervention.

Secondly, they are more accurate. Human error can lead to mistakes in identity verification, which can be costly for businesses. Automated identity checks use algorithms and machine learning to verify identities accurately and quickly.

Finally, these kinds of identity checks are more scalable. As businesses grow and process more transactions, manual identity checks become more challenging to manage. Automated identity checks can scale with business growth, ensuring that identity verification remains efficient and accurate.

How Automated Identity Checks Work

Automated identity checks use a variety of methods to verify identities. Some of the most common methods include:

Document verification

Document verification involves verifying the authenticity of government-issued identification documents such as passports, driver's licenses, and national identity cards. Automated document verification uses algorithms and machine learning to compare the document to known templates and check for signs of tampering or forgery as part of the onboarding process.

Biometric verification

Biometric verification involves verifying a person's identity using unique physical characteristics, such as fingerprints, facial recognition, or voice recognition. Automated biometric verification uses advanced algorithms to compare biometric data against known records and databases.

Database verification

Database verification involves verifying a person's identity by comparing personal information against databases and other sources. For example, businesses can use automated database verification to check a person's name, date of birth, and address against public records, credit bureaus, and other sources. This is where our politically exposed person and sanctions checks are performed.

All the above automation is designed to improve aml, kyc compliance and regulatory processes within the business.

Why are good regulatory processes critical?

Poor regulatory processes can have significant consequences for businesses and individuals alike. One of the critical repercussions of inadequate regulatory processes is the imposition of fines. Fines serve as penalties for non-compliance or failure to meet regulatory standards, and they are intended to incentivise adherence to regulations and promote responsible behaviour. Regulators have extra powers to fine up to £25,000 for poor regulatory processes.

Fines related to poor regulatory processes also serve as a means to protect consumers and stakeholders. In many industries, regulations are in place to safeguard the interests of consumers, employees, and the public at large. Businesses must meet these regulatory standards to avoid putting people at risk. Fines act as a mechanism to hold those responsible accountable for their actions or negligence, ensuring they face the consequences for any harm caused. This protects individuals and sends a message that non-compliance will not be tolerated.

By automating identity and document verification, you can always adhere to the highest level of due diligence, and the cost and time-saving benefits mean an immediate financial benefit to an organisation too.

To learn more about regulatory fines click here.


Automated identity checks are essential for preventing fraud, ensuring compliance, and building customer trust. Using advanced algorithms and machine learning, businesses can verify identities quickly, accurately, and at scale. Whether you're a financial institution, legal organisation, or any company that deals with sensitive personal information, automated identity checks are a must-have tool for securing your operations and protecting your customers. To get a free personal demo today click here.

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