WIREDGOV

By Barley Laing, the UK Managing Director at Melissa

With 95 per cent of the UK population having access to a smartphone, a mobile number is quickly becoming a vital part of the identity verification process, in know your citizen (KYC) and anti-money laundering (AML) compliance, and in the fight against fraud.

While matching a name to an address has been and continues to be an integral part of the ID verification process when onboarding new users, it’s clear that mobile ID verification - matching a name to a mobile number - is something that needs to be embraced. Particularly as it can provide a frictionless user experience.

The value of mobile ID verification in the identity verification process is due to the fact it uses real-time data from mobile network operators (MNOs) to authenticate an individual's identity with a high degree of accuracy. Whereas traditional methods depend on semi-static data.

When it comes to SIM registration individuals are required to register their name, address, date of birth and, in some cases, provide a government-issued document or national ID. This means mobile numbers are increasingly becoming primary identifiers and digital identities.

In the EU and parts of Asia, such as India, a valid mobile number is not only necessary for basic communications but also for critical activities such as opening a bank account, registering for online services, or renting property.

Additionally, mobile ID verification can be more cost effective compared to identity verification performed against regulated data sources, such as credit bureaus and government bodies.

In summary, mobile ID verification delivers a dependable and efficient way to authenticate users, prevent fraud, and comply with regulatory requirements.

Effective ID verification requires multiple data points

It’s important to recognise that on their own each piece of contact data, such as mobile phone number, is just one part the identity verification jigsaw. Therefore, to enhance accuracy, make sure that the prospective user is who they say they are, and to help prevent fraud, cross reference a name with a physical address, landline telephone or email, where possible. This is vital with fraud in the public sector continuing to pose a significant issue, with estimated losses in the UK ranging between £33-59 billion annually. 

Undertake electronic ID verification (eIDV)

Sourcing an “always on” automated eIDV service is a great way to undertake ID verification. They can, in real-time, cross-check the names and addresses - for proof of address - email addresses and phone numbers provided by those applying for services online. This results in a good user experience while preventing fraud.

For the best outcome it’s preferable to obtain an eIDV platform with access to billions of consumer records from reputable sources around the world, including credit agencies, government agencies, utility companies, as well as mobile network operators. This ensures the delivery of an efficient customer ID verification service, globally. Additionally, maturing technology enables eIDV to be offered at a range of affordable options.

The value of the IP address

Don’t forget the importance of the IP address as part of the identity verification process. Find out if the IP address of the person applying for a service matches or is near the verified physical address they have provided. For instance, if the individual seeking housing benefit is in a different country from their registered address carrying out an additional verification procedure would be a good idea prior it being approved.

Mobile ID verification is going to play an increasingly vital role in the ID verification process as the proliferation of smartphones increases. However, for best practice identity verification, and effective KYC and AML to help prevent fraud, those in the public sector should, along with mobile phone number data, cross reference other sources of contact data to ensure the potential users of their services are who they claim to be.

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