Identity Validation and Verification with Machine Learning

Identity validation can solve many of the problems of vulnerability and cyber attacks that they help businesses reduce chargebacks and increase conversions, making identity verification the number one step toward a more secure future for your business.

In general terms, identity verification ensures that the person behind a process is who they claim to be, avoiding fraud and identity theft through different processes. For example, one of the best known is KYC which includes verification through identity documents, face reading and file recognition, such as your proof of address (utility bill). The companies carry out the validation of the sensitive information of their clients in compliance with the legal requirements and laws. A more automated form of KYC is now called eKYC, which means it is a paperless version of identification.

Identity verification has become significantly important to businesses in recent years. In Mexico, for example, an estimated 20% of banking organizations has identity validation methods automated and a 60% is on the way to implement it. Additionally, it is expected that its global market size go from $ 7.6 billion in 2020 to $ 15.8 billion in 2025.

The importance of implementing these processes for organizations can be costly, some of them continue to pay compliance fines for data breaches. The list of online crimes is endless and many argue that data is the greatest asset. Any misstep can have serious consequences, including identity theft. For this reason, it is essential to assess and onboard only trusted customers with the support of Codster  through identity verification. 

How Identity Verification Works With Machine Learning

 Machine Learning  is a branch of AI The objective of which is to equip applications or machines with intelligence through algorithms trained to identify patterns among huge amounts of data, allowing them to learn and improve as time goes by.

In the field of identity verification, It has been possible to take advantage of this technology to capture and identify biometric patterns and compare them with samples or data previously collected and stored in the system. Thus, you find:

  • Voice biometrics.
  • Fingerprint registration.
  • Facial biometry.
  • Iris.

Among all these, facial recognition solutions for identity validation are one of the best alternatives. This is based on mathematical models, which are the algorithms that are generated based on some starting data. Thus, the system performs an analysis and comparison of the face patterns identified in real time, with those collected in a photograph taken in advance in a registration process or with that of a document that proves that the individual is who he claims to be. , like RUN.

identity validation verification
Identity validation based on Machine Learning could help streamline your processes and prevent fraud, as well as offer a better experience to your customers.

This analysis compares in a matter of seconds multiple patterns that make a face unique and unrepeatable, such as the distance between the ears, the size of the nose, the width of the chin, etc. From this examination, the system concludes that there is a certain percentage of coincidence between the individual of the selfie or of the video in real time and the one that appears in the photograph of the document or previously registered.

Of course, if the identity verification is carried out remotely using the photograph of a document, it is necessary that the system also carry out a validation, using technologies such as optical recognition that analyzes the elements that compose it to determine if it is false or original. .

Why has the importance of identity validation grown? 

The main factors driving identity verification are the digitization of the economy and the increase in fraudulent activity and identity theft. The latter crime is the fastest growing in Mexico and the world; Only in 2019 caused financial service users losses of 2,965 million pesos, according to Condusef data.

Of course, count on Methods of identity validation brings additional benefits to your business, such as competitive positioning, regulatory compliance, improved user experience and increased brand image and trust.

Identity verification allows companies to continue with a digital workflow, which means less need for paperwork, especially in document validation to onboard new clients or employees. By removing friction in the application process, they will have faster access to your services, which will have a positive impact on their experience with your company.

This change in direction translates into a good reputation, something that all institutions strive to build. Customers today only strive to transact with reputable organizations that provide them with security, so building trust will be essential for them to stay with you for the long term. One of the best ways to earn their trust is to make sure that the information they've provided you with is kept confidential. 

identity validation verification
Machine Learning-based identity validation offers significant improvements in the security of your workforce, your customers, and your sensitive data.


As such, creating a robust identity validation process will give them the security they need and it is a direct indication that you care about their well-being. Ultimately, meeting your customers' needs will make them advocates for your company, which will enhance your reputation in your industry.

The key benefit of purchasing identity verification and access management services is that it helps prevent fraud. This is especially important for companies in the financial industry, as it can prevent malicious schemes such as money laundering or misappropriation of sensitive data. Instead of assuming that the information received by your company is correct, consider using a system that obtains verified photos or videos of your customers that would prove their identities.

Client identity validation adds more than security; also helps to report suspicious transactions. It allows companies to capture more details, such as IP addresses and geolocation, as well as valuable information. This information can help related companies develop a deeper understanding of an individual's behavior to determine the validity of a transaction.

Additionally, if customer identity verification is not implemented correctly, it can violate an individual's privacy and federal law. Various data privacy regulations require consent and prior notice to process an individual's information, such as facial recognition and other biometric data. Additionally, failing to verify a person's identity can lead to illicit transactions and potentially lead to heavy fines and even criminal prosecution.

Fortunately, technology advances by leaps and bounds and today you have at your disposal Machine Learning to develop this process.

identity validation using images is reliable. However, to enhance the results, you can complement it with another biometric technique and/or with other methods such as two-factor authentication. In Codster, a leading firm in the development of artificial intelligence applications, you can create technological solutions for identity verification tailored to your needs. If you want to know more, do not hesitate to contact.

identity validation verification
Digital identity validation may be the key you needed to boost your company's potential to avoid possible fraud and streamline your processes.

eKYC, a valuable identity validation method for your company

Customers demand fast and secure identity validation services. For this reason, considering the high demands, businesses are now choosing eKYC solutions instead of sticking to manual forms of identity verification. The eKYC transformed the traditional versions of KYC verification and made it possible to automate many processes. These are the main factors that make eKYC solutions more effective:

  • Speed. What took weeks now takes seconds. Digital identity verification is fast and secure.
  • User-friendly services. The remote verification process takes just a few steps without the need to leave your home.
  • Guaranteed security. Digital identity validation services are based on strict regulations and high data protection standards that prioritize the security of customers by protecting them from fraudulent activities.

Instead of identity validation agents, we now have AI-powered solutions where customers must upload an onboarding photo and add their personal information. Once this is done, the system performs the Know Your Customer (KYCI) process to run a quick background check on the customer. For added security, businesses are encouraged to use biometric identity verification. Biometric controls can identify a person by reviewing their biological traits and comparing them with the photo of the DNI or passport.

While there is no universal “one-size-fits-all” form of identity validation for all businesses, it is clear that simple and secure identity verification solutions for businesses are crucial. Digital solutions bring customers and businesses closer together by providing universal access to various services remotely.

In addition to the easy-to-use functionality, identity validation helps prevent data from falling into the hands of fraudsters. The main benefits of remote identity verification for companies are:

  • identity validation helps detect and combat fraud more efficiently.
  • Digital identity validation services eliminate the need for physical presence.
  • This process enhances customer confidence and protects the company's reputation.

In Codster, we can be your ally in the development of artificial intelligence applications to exploit the potential of your company, creating technological solutions for identity validation tailored to your needs. If you want to know more, do not hesitate to contact us.

Alejandra Correa

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