Identity verification is crucial for businesses in various industries, including finance, healthcare, and e-commerce. However, despite its importance, enterprises need help implementing effective identity verification processes.

These challenges include balancing security with user experience, ensuring compliance with data privacy regulations, dealing with fraudulent activities, keeping up with technology advancements, and ensuring data accuracy.

In this article, we take a closer look at these challenges and ways to overcome them.


Collecting Scanned Readable Documents

Collecting and processing scanned, readable documents is a challenge for businesses during the onboarding process. To overcome these challenges, companies can invest in technology designed for identity verification, such as optical character recognition (OCR) software. This technology can automatically extract the information from the scans and verify its accuracy. 

Here are some of the challenges that continue to plague the industry:

1. Poor quality scans: If a user provides a scan of their identification documents that are of poor quality, it can make it easier for the business to verify the information contained within it accurately.

2. Format compatibility: Countries and government agencies use different formats for their identification documents. It can make it challenging for businesses to ensure that they can read and verify all of the other formats that they may receive.

3. Legibility of handwriting: Handwritten information on identification documents can be challenging, especially if the writing could be better or the paper is old and faded.


Linguistic Challenges

Linguistic challenges can be a significant obstacle during customer onboarding, especially for businesses that serve a global customer base. Languages play a huge part in communicating and the large audience base for various languages.

Communication is a critical component of the onboarding process, and language barriers can make it difficult for businesses to communicate effectively with their customers.

One challenge is when customers may need to be more fluent in the language used by the business. This can make it difficult for the company to communicate the information required for the onboarding process and for the customer to understand the instructions provided. In such cases, businesses need to provide customer support in the customer's preferred language to ensure a smooth onboarding experience.

Another challenge is translation errors, which can occur when information is translated from one language to another. Translation errors can result in miscommunication and misunderstandings, and in some cases, they can lead to incorrect information being captured during the onboarding process. Businesses should use professional translators or software that can accurately translate information.

In addition, there may be cultural differences between countries and languages that businesses must consider during the onboarding process. For example, specific terms or concepts may have different meanings or interpretations in other cultures, leading to misunderstandings. Companies must be sensitive to these cultural differences and make appropriate adjustments in their communication and information to ensure that their customers feel understood and valued.


Verifying Signatures 

Ensuring verified signatures is critical to identity verification, as it helps businesses prevent identity fraud. However, companies need help in ensuring that signatures are accurate and authentic.

One major challenge is forgery. Fraudsters can easily forge signatures, making it difficult for businesses to verify a signature's authenticity accurately. This can lead to identity fraud, which can have severe consequences for the business and the customer. To combat forgery, companies must have a robust process for verifying signatures, including technological and manual verification methods.

Explore this fascinating research paper from Hindawi on how the comparative study of signatures is done to expand your learnings better.


Granular Risk Adjustment

Fine risk adjustment is a crucial aspect of the identity verification process, as it helps businesses assess the risk associated with a specific transaction or customer. This process involves evaluating various factors, such as the customer's location, the type of transaction, and the information provided by the customer, to determine the level of risk associated with a transaction. 

It can be a challenge to execute countless adjustments at a large scale and manage various user identity information. In the past 5-10 years, new third-party solution vendors have emerged that provide one-stop solutions. You can click here to learn how you can embed it into their current infrastructure.

Your business can adjust its identity verification process based on this risk assessment.

There are several benefits of granular risk adjustment in the identity verification process, including:

1. Improved fraud detection: Businesses can more accurately identify potentially fraudulent transactions and take appropriate action by evaluating multiple risk factors.

2. Enhanced customer experience: By adjusting the identity verification process based on the level of risk, businesses can reduce the number of false positives, which can help improve the customer experience.

3. Increased efficiency: Granular risk adjustment can help businesses streamline their identity verification process, as they can focus their resources on high-risk transactions and minimize the number of manual reviews required.

4. Better risk management: By evaluating the risk associated with a transaction, businesses can better manage their risk exposure and take appropriate measures to mitigate potential losses.



In conclusion, standardizing identity data is a crucial aspect of identity verification. However, businesses need help in achieving this goal. These challenges include data inconsistency, privacy and security concerns, the complexity of identity data, and the need to comply with multiple regulations and standards.

To overcome these challenges, businesses must adopt a comprehensive approach to identity verification that includes data standardization, data privacy and security measures, and a robust compliance framework. By taking these steps, businesses can ensure that they have accurate and consistent identity data while also protecting the privacy and security of their customers. 

Additionally, companies should better manage risk and ensure compliance with all relevant regulations and standards.