Implementing identity verification is vital for building trust – but done wrong, it can frustrate users and invite fraud. Even big players are innovating: for example, Mastercard just launched a new online verification tool to check cardholder attributespymnts.commastercard.com. Many of the top 10 identity verification companies (like Jumio, Onfido, LexisNexis, TransUnion) emphasize smooth, secure flows. Still, organizations often trip up on basics. Below we explore the five most common pitfalls, with examples and concrete steps to avoid them.
Mistake #1: Overcomplicating the User Experience
Requiring too many steps or redundant data kills conversions. A typical overly complex flow might force users to manually enter their info (name, address, SSN), upload ID docs, take a selfie, set up 2FA, and answer trivia questions – all at once. Each extra screen adds friction: users get frustrated and abandon the process. For example, TSA’s security checkpoint shows why smooth fallbacks matter. If you arrive without a REAL ID, the TSA agent will simply ask for your name and address to confirm identitytsa.gov. The key is to balance security and convenience.
- Avoid Redundancy: Don’t make users re-type the same data. Use form pre-fill wherever possible. For instance, solutions like Prove Pre-Fill® or Plaid’s Link can auto-populate fields from trusted sources (phone or bank data), sparing users extra typing. Plaid’s identity verification even lets you pass known info to skip screens – although note, Plaid charges a base fee plus extra for data checks or document scansplaid.com.
- Streamline Steps: Limit verification to what’s needed. Can you verify a user’s age or address behind the scenes? Mastercard’s new identity-attribute tool does just that: it confirms attributes like age or address via the card network, eliminating the need for extra document uploadsmastercard.commastercard.com. This kind of passive check (if available) keeps fraud down without asking users to send a photo of their ID.
- Use Real-Time Validation: Catch typos instantly. If a user mistypes their email or address, flag it before submission. This avoids people redoing the whole flow. SMS or email verification (one-click links) are faster than complicated knowledge-based questions.
By focusing on UX, you maintain security and conversions. Automated, behind-the-scenes checks (like biometric face-match or issuing-bank data) let legitimate users through quickly while still blocking fraud. The goal is to minimize user friction – for example, jump to face ID verification only if initial checks flag a problem. Keep onboarding under a minute, and you’ll retain far more customers.
Mistake #2: Skipping Robust Error Handling and Monitoring
Treating identity verification as “plug and play” is dangerous. It’s not set and forget. Common failures (network blips, invalid input, third-party downtimes) must be caught and logged. Without proper logging and alerts, you won’t know why a user failed verification or why an API call timed out.
- Log Everything: Capture detailed logs for each verification attempt – which provider was called (e.g. TransUnion, LexisNexis, Jumio), what data was sent, and what errors (if any) came back. This way you can trace problems quickly. For example, if LexisNexis returns a “no match,” your logs should show exactly which field (SSN? Address?) failed, so you can adjust prompts or fallback options.
- Set Up Monitoring Dashboards: Track key metrics like success rate, latency, and error rate. Watch for spikes in failures or slowdowns. (If verification suddenly slows from 1s to 5s per call, you’ll frustrate users.) Use real-time alerts to catch issues early. For instance, if Jumio’s AI engine experiences a hiccup, your system should detect rising response times and notify devs immediately.
- Graceful Degradation: Have fallback flows if a service fails. If your primary ID check API goes down, automatically switch to a backup method. For example, if a credit-bureau check times out, try a quick email or SMS verification instead, then retry the full check in the background. This keeps users moving forward rather than stuck.
In short, instrument your verification pipeline like you would any mission-critical service. The top companies build dashboards to continuously optimize their systems. (Skipping this is like flying blind.) Remember: once live, an ID flow still needs tuning. Track false-positive rates and user drop-offs, then iterate. Following best practices in identity verification protocols – from basic error handling to advanced fraud scoring – is crucial for a secure, reliable servicetrustdecision.com.
Mistake #3: Overlooking Security Best Practices and Compliance
It’s not enough to verify identities – you must do so safely and legally. A common mistake is mishandling sensitive data or ignoring standards. You should always:
- Use Strong Encryption: Encrypt PII both in transit and at rest. For example, any Social Security numbers or passport scans sent to an API must use TLS 1.2+ and be stored encrypted. If you log errors, scrub or mask sensitive fields first.
- Manage Keys Properly: Secure your API keys, certificates, and encryption keys with a vault (like AWS KMS or HashiCorp Vault). Never hard-code secrets in your app. Rotate keys regularly. This is as important in ID verification as in payment processing.
- Adhere to Standards: If you serve regulated sectors (finance, healthcare, government), follow relevant rules. For instance, U.S. federal agencies must meet FIPS 201 (Personal Identity Verification) standardsen.wikipedia.org. (FIPS 201 defines how to issue and use smart ID cards.) Even if you’re not a government agency, looking at FIPS 201 or NIST guidelines can inspire your own proofing processes.
- Multi-Layer Security Checks: Don’t rely on one factor. Combine document verification with biometric checks or device fingerprinting. For example, banks often check both the user’s ID document and run an automated “bank data” lookup (like Equifax’s solution) to cross-verify infoassets.equifax.com. This multi-layer approach (document + database + behavior) catches fraud that a single step would miss.
Also, stay on top of privacy laws. If your user base is global, know GDPR, CCPA, etc. Promptly get consent before running checks like credit bureau queries or banking info lookups. For example, TransUnion advises that effective ID verification “helps ensure a person is who they claim to be” while also complying with KYC/AML rulestransunion.com.
By respecting security and compliance from day one, you avoid breaches and fines. Think of security as part of UX: to the user, it should feel invisible. As Mastercard notes, their new ID-attribute system keeps privacy at the core by only sharing needed data pointsmastercard.com. Likewise, in your implementation use “privacy by design” (only use whatever data is absolutely required) to protect users.
Mistake #4: Choosing Rigid or Overpriced Solutions – Not Designing for Growth
Many teams pick an identity provider without considering future needs. This leads to vendor lock-in, scalability bottlenecks, or hidden costs. Beware these pitfalls:
- Selecting Inflexible APIs: If your vendor doesn’t support multiple verification methods, you’re stuck. Pick providers with a broad network of data sources. For example, Jumio and LexisNexis allow checks across global databases; if you launch in a new country, you should be able to plug in a new data source without ripping out your code. Avoid one-trick tools.
- Ignoring Performance and Scale: Identity checks can get heavy under load. Does your solution scale horizontally? For instance, phone-number verification can timeout under heavy traffic unless you batch requests. Architect so that you can add instances or alternate services when volume spikes (e.g. peak business days).
- Overlooking Pricing Models: Verification costs add up. For example, Plaid’s identity verification has a base fee per attempt, plus extra for document or selfie checksplaid.com. If you don’t factor this in, you might be hit with surprise bills. Review each provider’s pricing – some charge per API call, others per user per month. Negotiate volume discounts if needed.
- Underplanning Flexibility: Tech evolves. Don’t hard-code logic for one method (say, “only driver’s license”). Users might later want to verify via phone, email, or social login. Build a modular flow (with feature flags) so you can add new verifications (biometric, blockchain IDs, etc.) without a full rewrite.
As a real-world example, Ohio’s DMV (BMV) upgraded its system to add Socure-powered ID scanning for online driver’s license renewalsbmv.ohio.gov. This shows that over time, even govt agencies plug in new tools. If your architecture is rigid, you’ll struggle to adapt. Always design for multiple vendors and future-proofing.
Mistake #5: Confusing Proofing, Verification, and Authentication
Identity management involves distinct steps, and mixing them up is a common flaw. In simple terms: Identity Proofing is done first (usually at account creation) and establishes who someone is. Identity Verification checks that their claimed info matches authoritative sources. Authentication is later, checking that the person logging in now is the same person who was verified before (e.g. by passwords, tokens, or biometrics).
TransUnion clarifies that proofing “focuses on the authenticity of data provided” (documents, SSN, etc.) at onboarding, whereas verification ensures the person presenting that data is the rightful ownertransunion.com. Likewise, GBG explains that verification happens during signup (e.g. scanning an ID, cross-checking credit info), while authentication is used to prevent account takeover by challenging the user with something only they know or have (passwords, OTPs, fingerprints)gbg.comgbg.com.
Why it matters: If you treat login challenges as “verification,” you’re leaving a gap. For example, if you only email a code at login, you’ve done authentication, not proofing. A hacker might still sign up under a fake name. Conversely, if you force full document scanning on every login, you’ll horrify users. Know which step you’re on.
- Proofing vs Authentication: Ensure new users are proofed properly. For example, Ohio’s BMV requires applicants (age 19+) to pass a LexisNexis identity verification process before even taking their driving testbmv.ohio.gov. That’s proofing: verifying new identity data against a trusted source. Later, when the user logs into their DMV account, the system simply authenticates (e.g. by asking for a password or sending an OTP to their phone). Both steps are important, but they serve different purposes.
- Identity Verification vs Authentication: Don’t skip MFA. Verification (checking the ID) often happens only once, but each session should require at least one authentication factor. Simple 2FA (SMS, email link) adds a layer so even if credentials leak, the thief is stopped. In short: use layered security – strong proofing at signup (documents, biometrics) plus ongoing authentication on each login.
- Clarify Internal Terms: Make sure your team and stakeholders use these terms consistently. Miscommunication can lead to skipped requirements. (E.g. a compliance officer may assume “identity verification” means KYC-level checks, while a developer might think it just means “login with Face ID.”) Spell out in your architecture: “Onboarding = proof of identity (document scan + match); Logging in = authentication (MFA, device check).”
By separating these concerns, you’ll avoid gaps. A robust solution might use, say, LexisNexis or Jumio for initial proofing, then rely on tokens or device intelligence (from providers like TransUnion) to authenticate future logins. Remember: proofing prevents new account fraud, while authentication prevents account takeover – both are essential for trust.
Bottom Line: A strong identity verification system is more than just plugging in an API. Avoid these top mistakes by focusing on user-friendly design, solid engineering practices, and clear security thinking. Test with real users (and even compare with known flows – e.g. TSA’s ID checks or ComEd’s in-person ID centers), instrument everything, and stay adaptable. The result will be a verification pipeline that protects your business and keeps customers happy and compliant.
