Customer Identity Proofing

Customer Identity Proofing is the foundational process of verifying that a customer’s digital identity matches their real-world persona. By meticulously authenticating identity documents, biometrics, and behavior patterns, it creates a trusted basis for secure interactions within digital platforms.

What us Identity Proofing?

Identity proofing involves validating an individual’s identity claims to ensure they are who they claim to be. This process typically begins with the individual providing personal information, such as name, date of birth, address, and government-issued identification numbers (like Social Security numbers in the U.S. or National Insurance numbers in the U.K.). The proofing process then verifies this information against authoritative sources, such as government databases or credit bureaus.

Methods of Identity Proofing

The methods used in identity proofing range from basic to advanced, depending on the required security level. Basic methods might include knowledge-based authentication (KBA), where the individual answers personal questions. More advanced methods involve biometric verification, such as fingerprint or facial recognition, and document verification, like scanning a driver’s license or passport.

Importance in Security

In a digital world where fraudulent activities and identity theft are rampant, robust identity proofing is crucial for security. It helps prevent unauthorized access to sensitive information and systems, thus safeguarding both the individual and the organization from potential harm or loss.

Compliance and Trust

For many organizations, especially in finance, healthcare, and government services, identity proofing is not just a security measure but also a regulatory requirement. Adhering to these protocols is essential for compliance with laws like GDPR in Europe or HIPAA in the U.S. Moreover, effective identity proofing builds trust between users and service providers, an essential element in online transactions and services.

Challenges and Evolution

Despite its importance, identity proofing faces challenges such as balancing user convenience with security and protecting personal data during the verification process. The field is continually evolving, with emerging technologies like AI and blockchain offering new ways to enhance accuracy and security.


Custom workflows that are integrated with BAAR’s identity and access management suite manage all aspects of identity proofing. The workflows are customized to follow your processes for customer identity validation.

Collect Identity Information

The process begins by collecting information from the individual. This information can include personal details such as full name, date of birth, address, contact information, and more.

Document Verification

An individual may be required to provide official documents to prove their identity. These documents can include government-issued IDs (e.g., driver’s license, passport), utility bills, or other documents that contain their name and address

Biometric Verification

Biometric verification methods, such as fingerprint scans, facial recognition, or iris scans, may be used to confirm the individual’s physical characteristics.

Knowledge-Based Verification

The individual may be asked to answer knowledge-based questions that only the true identity holder would know. These questions may be based on personal history, financial records, or other confidential information.

Authentication Codes and Tokens

In some cases, identity proofing involves the use of one-time codes sent to the individual’s registered email address or mobile phone. The individual must enter the code to prove they have access to the registered communication channels.

Third-Party Verification Services

Organizations may use third-party identity verification services that access various databases and sources of information to validate an individual’s identity. These services can provide additional layers of security and verification.

In-Person Verification

For high-assurance identity proofing, an in-person verification process may be required. This involves the individual physically visiting a verification center or agency, where they present their documents and biometric data for validation.

Background Checks

In some cases, background checks, including criminal background checks or credit checks, may be conducted to verify an individual’s history and reputation. This is done by workflows integrating with third party services.

Machine Learning and Artificial Intelligence (AI)

Some identity proofing processes use machine learning algorithms and AI to analyze patterns and detect anomalies that may indicate fraudulent activity.

Review and Decision

The collected information and verification results are reviewed by trained personnel or automated systems. Based on the outcome, a decision is made regarding the individual’s identity verification.

Identity Assurance Levels

Identity proofing processes may assign assurance levels based on the strength of verification. These levels determine the level of trust placed in the individual’s identity.

Record Keeping and Compliance

Organizations are often required to maintain records of the identity proofing process for compliance and auditing purposes.


Identity proofing is a crucial practice in today’s increasingly digital world, serving as a foundational element for securing online interactions and transactions. Let’s delve into the importance of identity proofing:

Security Against Identity Fraud

In an era where personal information is often easily accessible online, the risk of identity fraud is high. Identity proofing is essential for verifying that individuals are who they claim to be, thus preventing fraudsters from impersonating others to gain unauthorized access to information, funds, or services. This verification is vital in sectors like banking, healthcare, and government services where such fraud can have severe consequences.

Compliance with Regulatory Standards

Many industries are subject to regulatory requirements that mandate strict identity verification procedures. For example, the finance sector often needs to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Similarly, healthcare providers in the U.S. must adhere to HIPAA regulations, which include identity verification standards to protect patient data. Failure to comply with these regulations can lead to significant legal and financial repercussions.

Enhancing Cybersecurity Measures

As cyber threats evolve, identity proofing becomes a more critical component of an organization’s cybersecurity strategy. It ensures that only authorized individuals gain access to sensitive systems and data, thereby reducing the risk of data breaches and cyber attacks.

Building Trust in Digital Transactions

In the realm of e-commerce and online services, trust is a cornerstone. Identity proofing reassures users that they are interacting in a secure environment where other parties are also verified. This trust is fundamental for the growth of digital marketplaces and online financial transactions.

Improving Customer Experience

Effective identity proofing can streamline onboarding processes, making it easier and quicker for users to gain access to services. A smooth and secure verification process enhances the overall customer experience, encouraging continued engagement with the service.

Facilitating Remote Access and Global Operations

With the rise of remote work and global operations, identity proofing enables secure and efficient remote access to organizational resources. It is particularly crucial in verifying identities remotely, where traditional, face-to-face verification methods are not feasible.

How we are different

Native Capabilities That Define and Differentiate BAAR-IGA:
Ensuring digital identities align with real-life individuals through rigorous verification for secure online interactions.

Advanced Biometric Verification

Our platform’s use of cutting-edge biometric technologies, such as facial recognition and fingerprint scanning using customers mobile device, ensures the highest fidelity in customer identity verification.

Real-Time Identity Analytics

We employ real-time analytics to assess the authenticity of identity claims, providing immediate and accurate verification decisions.

Integrated Trust Scoring

The identity proofing feature includes an integrated trust scoring system that rates the reliability of the identity information, helping to streamline the verification process.

Global Document Verification

Our solution’s capability to verify a wide range of international identity documents enables global customer onboarding with consistent security standards.

Case Study:

Enhancing Security with Identity Proofing in an Online Banking Platform


A leading online banking institution faced challenges with identity fraud and customer data breaches. The bank’s traditional verification methods were proving inadequate in the face of sophisticated cyber threats, leading to a rise in fraudulent activities and a decline in customer trust.


The bank needed to strengthen its identity verification processes to prevent fraud and comply with stringent financial regulations.
The key challenges were:
1. Reducing the incidence of identity theft and account fraud.
2. Ensuring compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations.
3. Maintaining a user-friendly customer experienc


The bank implemented BAAR-IGA. Key features of the solution included:

Multi-Factor Authentication (MFA):

Customers were required to authenticate their identities using multiple factors, including something they know (password), something they have (mobile device), and something they are (biometric verification).

Document Verification:

The system used AI-powered technology to verify government-issued IDs and match them with a live selfie, ensuring the person creating the account was the ID’s rightful owner.

Continuous Monitoring:

Ongoing monitoring of accounts for unusual activities that could indicate fraud, with immediate alerts for suspicious actions.


1. Reduced Fraud: The bank saw a significant reduction in cases of identity theft and account fraud.
2. Regulatory Compliance: The new system met all regulatory requirements for customer identity verification, protecting the bank from potential legal and financial penalties.
3. Improved Customer Trust: Customers expressed greater confidence in the bank’s ability to protect their information, leading to increased customer satisfaction and retention.


By implementing a robust identity proofing system, the bank effectively combated identity fraud, ensuring regulatory compliance and enhancing customer trust. This case illustrates the critical role of identity proofing in securing online financial services.

Enhanced Trust

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