Alternative to Video-ID
Secure business relationships are important in any industry. Any risk of money laundering and other criminal offenses a customer or company may present should be eliminated at all costs. For a long time, Video ID was a popular method of verifying identities online.
However, Gematik, the German national agency for the digitalization of the healthcare system, has already banned video identification procedures for health insurance companies in Germany due to security deficiencies. For the time being, health insurance companies are no longer allowed to identify people by video because of security breaches that enabled hackers to fake identities easily.
What is a Video ID procedure?
Video ID is typically used to verify identities in the course of online onboarding processes or the conclusion of contracts between companies and customers. Especially in the financial sector, identity verification is of the utmost importance, since trading is a sensitive area affected by money laundering and evasion.
Video ID procedures provide security in the financial sector, as well as other industries where business relationships are highly valued. It’s a way for companies to check whether their potential partners are who they claim to be, thus, guarding themselves against money laundering, terrorist financing and other white-collar crimes.
Identities can be verified online via video chat on all major web browsers and apps. Regardless of location, you only need a stable internet connection, an electronic device, good lighting conditions and a valid identification document such as an identity card or passport. The whole process only takes a few minutes and can be completed from the comfort of your own home.
Security breaches in the Video ID procedure
Generally, Video ID satisfies the relevant technical requirements, verifies necessary security features and uses end-to-end encryption that meets specific criteria. However, there is no such thing as 100% protection. In the past, the Chaos Computer Club (CCC) discovered significant security gaps in the video identification process. As a result, Gematik prohibited the use of Video ID for health insurance companies to provide access to digital services.
Despite various security measures to protect identity verification against fraud, CCC security researchers managed to game the system and present themselves with false identities. They were able to access electronic records with sensitive personal data. As a result, the CCC insists that the Video ID process should only be used in areas with a low potential for damage. Are there any safer alternatives to Video ID?
Auto-ID – an alternative to Video-ID
Auto-ID procedure is a great alternative to Video ID. The biggest advantage is that it offers automated identity verification based on state-of-the-art AI technology. This hugely reduces identity fraud, since humans, who perform the identity check in the video ID process, are more prone to error than AI technology. Moreover, the Auto-ID process is not only particularly fraud-proof, but also compliant with any legal requirements. It can be used for any type of KYC or onboarding process.
Advantages of PXL Ident
PXL Ident is an AI-based biometric identification method that offers fully automated identity checks as well as electronic signatures. Speed and flexibility continue to be crucial factors during the identification process. PXL Vision’s Auto-ID allows for both. Our verification process only takes 30 seconds and can be conveniently completed at any time and any place.
It is a simple two-step process. First, you need to scan your ID document, which is automatically recognized and checked. Next, you will take a short selfie video to match you with the images of the ID document. You can also make use of our patented Passive Liveness Detection, a convenient way for customers to be verified without unnatural movements in front of the camera. Compared to other solutions (such as Video ID), with ours you will enjoy a higher customer acceptance and satisfaction rate, 67% fewer dropouts, and an 84% cost reduction.
Fewer desertions mean more profit – 67% fewer abandonments equal 25% more revenue. On the other hand, increased revenue is also possible thanks to our innovative and fast examination process, which is available at any time. Automation eliminates the need for manual testing and reduces costs such as personnel expenses. The cost savings can further increase the profit margin. Each additional sale is therefore doubly worthwhile.
The security and reliability of identity verifications are of paramount importance in our increasingly digitized world. With recent security concerns about the Video ID process, companies have been forced to look for alternate solutions. The Auto-ID process, which is based on modern AI technology, has taken on a crucial role to this end. But factors like cost-effectiveness and scalability also contribute to the fact that companies are increasingly looking for fully digitized solutions in order to save money.
With Auto-ID as an alternative to Video ID, you can continue to offer fast, smooth and location-independent verification processes for your customers. In addition, with Auto-ID, you can even offer them regardless of time. Avoid devastating security breaches and benefit from our cost-efficient alternative to Video ID procedures.
Auto-ID is an automated procedure for identity verification. It is based on modern artificial intelligence (AI) and advanced image processing technology.
Because Auto-ID is fully automated, it is less prone to human error and can operate around the clock. It also meets strict security and privacy standards to prevent fraud and identity theft.
There are several methods for identity verification – both offline and online. These include, but are not limited to
- Personal Identification