In the identity industry, ID verification or “IDV” is the term for the process of verifying that a person is who they claim to be. This process plays an important role in establishing trust in Verifiable Credentials by confirming the authenticity of the credential holder’s identity.
By James Schulte
Industries across finance, government, healthcare, travel, e-commerce, and telecommunications are rapidly adopting Identity Verification (IDV) to enhance security, prevent fraud, and comply with regulatory requirements. Banks and fintech firms are using IDV for KYC and AML compliance, while governments rely on it for issuing passports, digital IDs, and secure citizen access to public services. In healthcare, IDV ensures patient identity for telemedicine and medical records, while travel and transportation sectors use it for seamless airport experiences and ride-sharing safety. As digital interactions grow, businesses are integrating IDV to build trust, reduce fraud, and streamline user authentication, making it a crucial component of modern digital ecosystems.
How IDV works
Identity Verification usually functions by confirming the validity of personal information and documentation provided by the individual against reliable data sources. Some of the steps that can be undertaken during ID verification include:
Document verification
Examining passports, driver’s licenses, or national ID cards.
These physical documents typically require security features like the holograms or watermarks.
Biometric verification
Matching biometric information such as facial recognition, fingerprinting, or iris scanning to data that’s been provided on the document.
Liveness detection
A way of ensuring that that person being verified is physically present and not using a video or picture to spoof the system.
Database verification
Cross-checking the presented information against trusted databases or registries.
IDV + VC = an easy win for everybody
The combination of Identity Verification and Verifiable Credentials creates a powerful framework for secure and efficient digital identity management. Verifiable Credentials extend the range of identity verification technologies by encapsulating the verified data in a privacy-preserving and portable format.
Verifiable Credential technology offers the unique ability to securely hold data in a tamper-resistant way, and make it easy to share across systems. They do this by packaging the data created by issuing organizations and digitally signing it in a way where any attempt to alter the data will be visible on the network and “break” the credential. Once created, the credential can be easily and securely stored locally by the data owner in a digital wallet and verified by anyone with the appropriate software. This provides a better experience for the user who no longer needs to repeat redundant identity verification steps, and saves relying parties the costs of verifying each user.
(For a more in-depth look at Verifiable Credentials you can read this short article from Indicio.)
But to use them effectively, we need to be sure that the data inside is correct, we need a strong identity verification process.
An example of this technology combination in action are the government-grade credentials that Indicio has developed that can be self derived from the user’s passport. Used in our solution for SITA and the government of Aruba, these credentials can be created in seconds by scanning the chip inside a biometric passport and performing the necessary document authentication. The generated credential can then be presented digitally to share the relevant information from the passport to the border authorities prior to departure.
In short, these two technologies are highly complementary to each other. The existing IDV processes ensure the quality of the data for the credential, and the Verifiable Credential enables that data to be reused and shared across systems, organizations, and platforms.
If you would like to learn more about how these technologies work together you can watch a recent video from Indicio. Or if you would like to discuss a specific implementation or ask questions of our team please contact us here.
