Sancharini Panda
Digitalization has shifted human identities from physical documents to online profiles. With this shift, access to personal information has become easier. However, this ease of access comes with a hidden danger. For instance, fraudsters can use this situation to create false identities that may eventually find their way into your organization. They can disrupt your workplace culture, expose your company to security breaches, and lead to financial losses. This is where identity checks come in as a crucial line of defense. By verifying the legitimacy of a candidate’s identity, you can significantly reduce fraud and build a trustworthy team.
What is Identity Check?
An identity check is a process that verifies whether an individual is who they claim to be. This involves comparing their claimed identity with supporting documents, such as a national ID card, driver’s license, or passport.
With the rising number of identity theft and fraud cases worldwide, conducting thorough identity checks of potential hires is vital. Since it helps ensure a secure work environment, prevent fraud, and comply with employment regulations.
What Does Identity Check Verify?
Identity checking goes beyond simply verifying a candidate’s name. There are two critical components in this process:
Document verification: It ensures the legitimacy of the provided credentials by authenticating a candidate’s national IDs, driver’s licenses, passports, and other official documents.
Biometric verification: It adds an extra layer of security by using facial recognition and liveness detection to confirm the real-time presence of the individual presenting the documents.
Top Reasons Why Employers Should Conduct Identity Check
Ensuring a safe workplace is a big challenge in today’s dynamic, globalized work culture. Hence, a strong hiring process that includes thorough background checks can help to identify and mitigate potential risks associated with new hires. Being the stepping stone of the background verification process, identity check offers several benefits such as:
Reduced fraud and identity theft risk: Fraud and identity theft have become a reality today. According to a recent report by Hyperverge, there has been a staggering 50% increase in identity theft crimes in 2024 alone. The cost of such cases amounts to billions of dollars annually, making it a global hiring concern. In order to combat this threat, employers must have a strong identity verification system to detect the risks early and take prompt action.
Fortifying security measures: Every organization needs strong security measures to protect its employees, data, and reputation. Incorporating a robust identity verification process, along with multi-factor authentication, can help ensure that their potential employees are truly who they say they are. This significantly reduces the threat of security breaches and data privacy breaches within an organization.
Adhering to regulatory standards: With stricter regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering) coming into effect, conducting thorough identity checks is no longer just a best practice; it’s a recommended practice. Adhering to these rigorous verification standards not only mitigates the risk of hefty fines but also demonstrates your commitment to ethical business practices. This builds trust with clients, employees, and other stakeholders.
Safeguard organization: Identity verification significantly contributes to enhancing workplace security by preventing insider threats such as unauthorized access to sensitive data or intellectual property theft. For instance, in the healthcare industry, stringent identity verification measures reassure patients and their families of their safety. This builds trust and creates a more secure work environment for everyone.
Fostering trust and transparency: Strong identity verification initiatives contribute to building a culture of trust and accountability. For instance, a global consulting firm might require background checks and reference verifications for all employees. This assures clients that they are working with qualified and trustworthy professionals, bolstering the firm’s reputation and attracting new business.
Considerations for Identity Checks
Conducting identity checks involves handling sensitive personal data. Hence, one must approach this process with care and due diligence. The hiring managers need to consider several factors while conducting identity checks to ensure compliance and uphold data security standards. Some of these considerations include:
Compliance with data privacy regulations: Data privacy regulations are constantly evolving. While conducting identity checks, employers must ensure their verification process adheres to relevant rules applicable in their country. This may involve obtaining user consent for data collection and storage, implementing secure data handling practices, and offering clear information to the candidates about how personal data will be used.
Candidate consent and authorization: Before initiating an identity check, it is essential to obtain explicit consent and authorization from the candidate. This consent should clearly outline the purpose of the check, the types of personal data being collected, and how the information will be used, stored, and shared. Candidates should also be informed of their rights regarding access, rectification, and deletion of their data.
Choosing a reputable background screening provider: Organizations often partner with third-party background screening providers to conduct identity checks. In that case, it is crucial to select a reputable provider with a proven track record in the safe handling of sensitive data. Reputable providers should have robust security measures in place. Additionally, such measures must adhere to industry best practices, and undergo regular audits and certifications.
Security measures (e.g., data encryption): Organizations should implement robust security measures throughout the identity check process to protect the confidentiality and integrity of candidates’ data. This includes employing end-to-end encryption for data transmission and storage, implementing access controls and authentication mechanisms, and regular monitoring for potential security breaches. Additionally, organizations should have incident response plans in place to address any security incidents swiftly and effectively.
By considering these factors, organizations can conduct identity checks in a secure, compliant, and ethical manner, protecting both the organization’s interests and the candidates’ privacy rights.
General FAQs
Identity verification in employee background screening is not mandatory by law, but it is considered a best practice for most employers around the world.
You can verify an applicant’s identity through:
- DIY verifications: This involves reviewing and authenticating the documents provided by an applicant, such as government-issued photo identification, proof of address, driving license, etc.
- Third-party verification services: Employers can hire reputable third-party identity verification service providers to confirm the legitimacy of an individual’s identity.
In either case, the process remains more or less the same. The inclusion or omission of any additional parameter or process differs from country to country.
(Note: While DIY identity verification is possible, reputable service providers offer a more compliant, reliable, and comprehensive check. Their access to specialized databases and expertise in interpreting results streamlines the process and makes it less time-consuming.)
The time required for identity verification depends on several factors such as the industry type, regulatory guidelines, complexity of the applicant’s background, the information available in submitted documents, etc. Usually, it can take anywhere from a few days to a few weeks.
The documents typically required for identity verification include:
- Valid government-issued photo identification card (e.g., national ID, passport, driver’s license, voter ID, etc).
- Social security card or equivalent.
- Proof of address (e.g., utility bills or bank statements).
- Other state or federally-issued ID cards, etc.
During identity verification, an applicant’s data is secured through encryption, secure data transfers, minimal storage, and strict adherence to country-specific data protection laws. This prevents instances like unauthorized access and misuse of confidential data.
After verification, an applicant’s data is handled according to the data protection regulations of respective countries. Depending on the laws prevalent in a country, the data is securely stored for a specified period and then disposed of in a manner that ensures the confidentiality and integrity of the information.
You can integrate identity verification into your hiring process by establishing clear identity verification rules and guidelines, utilizing secure verification technologies, and training relevant personnel to conduct detailed and compliant identity checks. Otherwise, you can outsource the process by partnering with a reputable identity check service provider.
Handling identity verification for offshore employees may involve complying with international regulations, and adapting verification processes to accommodate various document types and verification methods across different countries. While gathering information about a candidate, you must pay special attention to the kind of information you are allowed to collect, process, and store as per the laws applicable in a country
If a candidate fails identity verification, employers try to find out the discrepancies in the information received from the candidate. Depending on the circumstances and the hiring policies, the job offer may or may not be considered.
If you have further questions or concerns about identity verification, feel free to reach out to CheckMinistry’s verification experts. Reach out to us at info@checkministry.com or contact us directly for any inquiries or support.
Identity theft and fraud is a global concern that affects organizations across all regions and industries. Fortunately, companies can efficiently identify and filter out imposters by adopting best hiring practices and implementing robust identity checks.
Incorporating thorough identity verification is a win-win strategy for both employers and employees. For employers, it is helpful as it protects their company and fosters a culture of trust and integrity. On the other hand, the new hires benefit from a secure work environment, and increased confidence in their organization. Thus, by prioritizing identity checks, organizations not only protect themselves but also foster a culture of integrity and trust.
