Glossary Online Identification

Online Identification

Online Identification simple explanation

Today, online identification is essential for both customers and businesses. When customers want to open a bank account, digitally sign a contract or register for an online service, the first thing they need is secure verification of their identity.

What is Online Identification?

Online identification is the digital verification of a person's identity without the need for them to physically appear. Companies verify both the authenticity of ID documents and the biometric characteristics of users - directly over the Internet.

Online identification is particularly relevant for:

• Banks and financial service providers (e.g. opening an account)
  
• Insurance companies (e.g. concluding contracts)
  
• Telecommunications providers (e.g. SIM card registration)
  
• Online retailers (e.g. age verification)
  
• Public administration (e.g. eGovernment processes)
  
  

Process and methods of online identification

Digital identification processes are based on a combination of ID document verification and biometric or technical verification of the person. The aim is to provide at least the same level of security as on-site personal identification - with significantly greater efficiency.

Different methods are used depending on the application and legal framework:

Process of digital identity verification

Biometric methods

Biometric methods can be used to analyse and evaluate unique physical characteristics that are difficult to falsify. The person is then securely authenticated using facial recognition, fingerprints or iris scans.

Modern auto-ident methods combine facial recognition with liveness detection, ensuring that a real person is in front of the camera.

AI-supported identity verification

Artificial intelligence optimises both digital document verification and biometric analyses:

• Automatic ID recognition and classification
  
• Authentication of security features
  
• Fraud detection and data validation
  
• AI-supported facial recognition and speech analysis
  

Video-Ident

Video-Ident is a BaFin-approved process in which a trained employee verifies identity via a video call. The entire session is recorded and documented - with the user's consent.

Selfie-Ident

Selfie-Ident, or auto-ident, is usually AI-based. The person submits photos of their ID and a selfie, and the biometric photo is automatically compared to the selfie. Selfie-Ident is faster than Video-Ident, but does not meet the same legal requirements, depending on the technical implementation. Therefore, it has a slightly lower level of trust according to the eIDAS regulation.

Two-Factor-Authentification

Two-factor authentication is an evolution of traditional password-based login. It is based on the principle that two independent factors from different categories must be combined for successful authentication.

The three basic categories are:

• Knowledge: Something that only the user knows (e.g. password, PIN)
  
• Possession: Something that only the user has (e.g. smartphone, security token)
• Inherence: Something the user is (biometric features such as face or fingerprint)

A typical example is logging into a customer account with a password (knowledge) plus confirmation via a smartphone app (possession). This combination significantly increases the level of security.

eID function of the ID card

The online ID function (eID) is a government-provided means of identification. It uses two-factor authentication and encrypted communication and meets the highest level of trust in accordance with the eIDAS regulation. It also uses the principle of mutual authentication. Not only does the user identify himself, but the service provider must also prove that it is authorised to retrieve data. Communication takes place via an end-to-end encrypted channel.

A national e-ID is also planned for Switzerland from 2026. This is intended to facilitate administrative processes and access to digital services for citizens.

Online identification: the legal framework in a nutshell

DDPR / revDSG

The General Data Protection Regulation (GDPR) and the Federal Data Protection Act (revDSG) regulate the handling of personal data - particularly strictly in the case of biometric features. The principles of data minimisation, purpose limitation and transparency apply.

eIDAS-Regulation

The EU regulation creates common standards for digital identities, signatures and trust services across Europe. It categorises means of identification into trust levels (low, substantial, high).

Money Laundering Act / Anti-Money Laundering Act (GwG)

Companies in sensitive industries (e.g. the financial sector) must clearly identify their customers. The law sets out requirements for procedures, documentation and retention obligations. Digital AMLA checks enable these processes to be carried out efficiently and securely.

KYC-Requirements

‘Know Your Customer’ guidelines are part of the AMLA and require reliable identity verification - including ongoing monitoring of business relationships.

Advantages for companies and users

Online Identification replaces traditional methods such as Post-Ident with modern, digital and highly secure solutions. It enables efficient, round-the-clock identity checks - without media disruption or long waiting times.

Online identification with PXL Vision

PXL Vision provides organisations with an AI-based digital identity verification solution that is secure, scalable and easy to integrate. Our portfolio includes cloud and on-premises solutions with:

• Automated document and face verification
  
• Liveness detection and OCR technology
  
• Customisable workflows and white-label options
  
• Seamless integration into existing systems
  

Experience modern online identification with PXL Vision