In person, identity
verification is easy. Ask for a photo ID, check to make sure the
hair is the same color and the age looks right, shine it under a
purple light if you want to be extra sure it's real. Online,
it's a little more difficult. As the famous 1993 New Yorker
cartoon states, "
On the Internet, nobody knows you're a
dog." Although we've come a long way in
online identity verification since 1993, it's still an imperfect
process. This is how identity verification in online account
opening and lending works:
Step 1: Verify that someone with the applicant's
name, address, and social security number exists.
To complete step one, most online identity verification systems
call out to one of the big three credit bureaus, Experian, Equifax, and TransUnion, who then search
for an identity match within their vast repositories of consumer