ID and Document Verification

Why you need automated identity verification

September 29, 2023
Why you need automated identity verification

As we navigate a world where clicking a mouse or tapping a screen often replaces a handshake, one question looms: How do we know who’s really on the other end? 

Businesses and individuals are grappling with this issue, keenly aware that a single lapse in the identity verification process could lead to irreparable damage. That’s where automated ID verification steps in—sleek, fast, and built on a foundation of cutting-edge technology.

At Microblink, we embrace the philosophy of “built by people, used by humans.” In line with that, this article aims to cut through the noise and provide a straightforward look at why automated ID verification is no longer optional—it is crucial.

Whether you’re a financial decision-maker, a technical lead, or a product manager, understanding the nuances of this technology is key to your organization’s success and security.

What is automated ID verification?

Before diving in, its important to recognize that identity document (ID) verification is only a only a slice of the broader category known as identity verification. While the two are closely related, they are not interchangeable terms. Automated identity verification serves as a comprehensive approach to confirming someone’s identity through technology, whereas automated verification focuses mainly on analyzing documents.

In place of manual scrutiny, this technology leverages machine learning, artificial intelligence, and data algorithms to confirm you’re interacting with a genuine individual.

man looking at a phone and picture of ID

This technology comes into play in various real-world scenarios, each demanding reliable identity confirmation. For instance, detecting that a new user is verified as genuine during the onboarding or signup phase on a digital platform, as this helps to prevent fraudulent activity and protects the platform’s integrity. 

Even something as routine as logging into an account benefits from automated verification. Here, identification and authentication become practically synonymous as the system validates that its rightful owner is the individual attempting to access the account.

Why is identity proofing important?

The value of eCommerce losses to online payment fraud reached its highest point in 2022, at a whopping 41 billion USD—nearly double from the previous year.

Before automated solutions, financial institutions and other organizations relied on manual checks, like scrutinizing paper documents and in-person verifications. However, these methods have significant drawbacks—they are time-consuming, susceptible to human errors, and inefficient when handling large volumes of data. 

To put this into perspective, imagine you’re buying a new car, and the dealer tells you the car has been thoroughly checked and is in great condition. You take them at their word and drive off the lot, only to find out a few days later that the brakes are faulty and the engine needs major repairs. You’re frustrated because you trusted the dealer’s verification process, only to find out it was inadequate.

Not only are these traditional verification methods expensive in terms of man-hours and infrastructural needs, but they also make Know Your Customer (KYC) compliance and fraud prevention a challenging task. These old-school methods often lack the sophistication to carry out digital footprint analysis, which is vital in today’s world.

How does automation help improve AML compliance?

AML stands for Anti-Money Laundering—a strict set of regulatory standards that financial institutions must adhere to.

In a manual system, the sheer volume of data would overwhelm even the most diligent teams. That’s where automated verification comes into play.

Automated systems efficiently sift through multiple databases, perform real-time checks, and ensure transacted money is legitimate and the people involved are verified. This speeds up the verification process and reduces the risk of lapses in regulatory compliance that could result in substantial penalties. 

In this way, automation is a force multiplier in AML compliance, enhancing efficiency and reliability.

What role does identity verification play in KYC?

Like AML, KYC is another crucial regulatory standard that financial institutions must follow. KYC primarily focuses on verifying the identity of customers to avoid identity fraud, money laundering, and other illicit activities. 

The cornerstone of KYC is accurate identity verification. Traditional methods often fall short in scope and efficiency, making it difficult for institutions to stay compliant without considerable resource allocation.

Thanks to the internet, customers might not always be physically present for verification. Automated systems provide the ability to verify identities remotely without sacrificing convenience or compromising security. In the context of KYC, automated ID verification is not just a helpful tool—it’s essential for maintaining compliance while enhancing operational efficiency.

Advantages of automated IDV

Automating ID verification brings a host of benefits that extend well beyond compliance. Let’s start with the user experience. No one wants to be bogged down with lengthy verification processes in a world where time is money. 

Automated identity verification systems offer swift onboarding experiences and cut down the time it takes to verify identity documents of new users. This translates into reduced friction—users do not need to navigate through complex procedures or wait for manual document verification. Plus, this technology often comes with intuitive, user-friendly interfaces to make the process straightforward, even for those who aren’t tech-savvy.

Economically, automation is a boon for businesses looking to lower their operating costs simply due to needing fewer man-hours to get the job done. Scaling is also made significantly easier since you cut out all the hassles that come with recruiting and simply handle things via an intuitive identity verification software.

From a security perspective, automated user identity verification is a huge win. Its capabilities in fraud prevention are commendable. Advanced algorithms can detect even the most sophisticated fake IDs and serve as an added layer of protection against data breaches.

Types of automated ID verification

There are several types of automated ID verification methods available, each with its own strengths and weaknesses. Let’s take a look at three of them.


When establishing the authenticity of a user’s identity documents, liveness checks play a crucial role. These checks ensure the presented document is genuine and not just a photograph or a video displayed in front of the camera. While face matching is one way to execute liveness checks, it’s worth noting that Microblink specializes in document liveness verification. By scrutinizing the document’s unique features and properties, Microblink’s technology confirms you’re dealing with a genuine physical identification.


Document-based automated identity verification involves a two-pronged approach: visual and data checks. Visual checks scrutinize the document’s physical appearance, or Visual Inspection Zone, by examining various elements like watermarks, holograms, and text placement to ascertain its authenticity. On the other hand, data checks go beyond the surface, digging into data hidden in plain sight in the barcode or Machine Readable Zone of an ID. Document verification software excels in this area, speeding up the verification process and minimizing the risk of human error.


Biometric data, like fingerprints or facial recognition, are increasingly used in automated identity document verification systems for added security. The process is often touted as nearly foolproof—just a quick fingerprint scan or face ID check, and you’re authenticated. 

However, it’s important to differentiate between authentication and identification. While biometrics excel at the former, ensuring the data matches an official database is still crucial for complete ID verification.

Another point of friction is that not everyone is at ease with sharing their facial data or fingerprints with private companies. While consumer trust in companies safeguarding their biometric data has increased in recent years, they might still think twice about sharing this information for biometric verification purposes.

How Microblink helps with automated IDV

As we continue to embrace the digital age, Automated Identity Document Verification has become a necessity for businesses. It saves time and money and ensures data security, providing peace of mind to both businesses and customers. 

With automated verification, the process is streamlined for customers, with no more waiting on hold or filling out lengthy forms. We understand the sensitivity of personal information and are dedicated to making the verification process as effortless as possible.

Microblink’s automated identity verification solutions are at the heart of this process, making this integration between convenience and security possible. So, don’t get left behind—embrace automated ID verification as the pivotal tool that it is, and take full advantage of its potential.

Try our automated identity verification solutions today and experience the peace of mind of knowing your customers are who they say they are.

Integrate ID document scanning into your existing application today

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