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Digital identity solutions: how to verify a bank account?

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TrustCloud | Digital identity solutions: how to verify a bank account?

Verifying the identity of users opening bank accounts is a crucial process to prevent fraud, identity theft, and other criminal activities. Digital identity solutions offer specially designed tools to carry out this process securely, efficiently, and remotely.

Types of digital identity solutions 


igital identity solutions encompass a wide spectrum of technologies that allow for the remote and secure verification of an individual’s identity. Among the most common are: 

  • Facial recognition: This technology uses cameras to capture images of the user’s face and compare them with a database of images and identity documents. Its accuracy and speed make it an ideal tool for real-time verification. 
  • Identity document verification: This method involves scanning and analyzing documents such as passports or ID cards to verify their authenticity and extract personal information from the holder. It is widely used for initial identity verification. 
  • Voice biometrics: This technology analyzes the unique characteristics of the user’s voice to identify them. Its use is expanding in banking, especially for customer authentication in phone calls. 
  • Electronic signature: Electronic signature is a secure method for verifying the identity of the signer of a digital document. It is commonly used in signing contracts and other online banking documents. 
  • Device authentication: This method uses the user’s device, such as a mobile phone or tablet, to verify their identity. It relies on elements such as IP address, operating system, and device information to confirm the user’s identity. 
  • Verifiable credentials: This type of digital identity solution allows individuals to securely issue, store, and share information about themselves, such as their identity, qualifications, or permissions, so that they can be verified by trusted third parties. These credentials are stored in a digital wallet, an application that allows users to manage their credentials and present them securely when necessary. 

Use cases in bank account verification 

Digital identity solutions are integrated at various points in the bank account verification process, from opening to everyday use: 

  • Account opening: They allow customers to open bank accounts online without the need to visit a physical branch, verifying their identity remotely and securely. 
  • Customer onboarding: They facilitate the incorporation of new customers into additional banking products or services, streamlining the identity verification process and improving the customer experience. 
  • Fraud prevention: They help detect and prevent fraudulent transactions by securely authenticating users at ATMs, online banking, or electronic transfers. 

Account recovery: In case of theft or loss of access credentials, digital identity solutions allow for securely verifying the user’s identity to regain control of their account. 

Benefits of digital identity solutions 

Digital identity solutions in banking offer a series of advantages that strengthen and bring financial services closer to citizens: 

  • Increased security: They significantly reduce the risk of fraud, identity theft, and unauthorized access to bank accounts, thanks to robust user identity verification. 
  • Improved customer experience: They streamline and simplify the account opening, onboarding, and access to banking services processes, eliminating the need for travel and improving customer satisfaction. 
  • Cost reduction: They automate manual identity verification tasks, freeing up human resources and optimizing internal processes, resulting in reduced operational costs. 
  • Regulatory compliance: They facilitate compliance with regulations such as KYC (Know Your Customer) and AML (Anti-Money Laundering), by providing robust tools for identity verification and financial fraud prevention. 

Frauds facing digital identity solutions 

Despite their advantages, digital identity solutions are not immune to fraud attempts. Some of the most common frauds include: 

  • Identity theft: Cybercriminals can obtain personal information from legitimate users to create fake profiles and access their bank accounts. 
  • Manipulation of images and documents: Advanced techniques such as deepfake allow for the creation of fake images and videos that can deceive facial recognition or document verification systems. Through artificial intelligence, videos and images are manipulated very realistically, overlaying a person’s face or voice in a video or audio where it originally wasn’t. This has opened up a world of possibilities for the creation of artistic, humorous, and even educational content. However, deepfakes have also raised significant concerns due to their potential for malicious use, such as spreading fake news, identity theft, or creating fake pornographic content. It is important to be aware of the existence of this technology and learn to discern between real and manipulated content. 
  • Device attacks: Malware and other cyber threats can infect users’ devices to intercept their biometric data or access credentials. 
  • Social engineering: Cybercriminals use psychological manipulation techniques to deceive users into revealing personal information or accessing malicious links that compromise their devices. They rely on the exploitation of human weaknesses and biases, such as kindness, trust, or the need to help, to achieve their goals. Some of the most common social engineering techniques include: 
  1. Phishing: This technique involves sending fraudulent emails or text messages that appear to come from a legitimate organization, such as a bank or a utility company. The goal is to deceive the victim into clicking on a malicious link or revealing sensitive personal information.
  2. Smishing: Similar to phishing, but instead of emails, text messages (SMS) are used to deceive the victim. 
  3. Spear phishing: This technique targets specific victims, gathering information about them through social networks or other online sources to create personalized and more believable messages. 
  4. Vishing: In this technique, cybercriminals make phone calls pretending to be employees of a legitimate company or institution. They use a friendly and urgent tone to pressure the victim into revealing confidential information or taking actions such as bank transfers. 
  5. Baiting: This technique involves offering something attractive to the victim, such as a free product or a prize, in exchange for personal information or access to their device. 
  6. Pretexting: Cybercriminals invent a false story or urgent scenario to build trust with the victim and make them reveal confidential information or comply with their requests. 

However, it is important to recognize that technology alone is not enough to guarantee absolute security. It is essential for banks to adopt additional security measures, such as continuous education of their employees and raising awareness among their customers about cyber risks, to create a truly secure and reliable digital banking ecosystem. 

As digital identity technology continues to evolve, we can expect even more robust, accurate, and user-friendly solutions. The integration of these solutions with other innovative technologies, such as artificial intelligence and blockchain, opens up a range of possibilities for the future of digital banking, where security, convenience, and trust will be essential elements in providing an exceptional banking experience to customers. 

Contact an expert in digital identification and banking onboarding 

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