How to Verify an ID Document in 2025

Key takeaways
 

Identity document verification is a critical shield against digital fraud, with 72% of businesses experiencing identity theft attempts. Technologies like OCR, NFC, and facial biometrics are revolutionizing authentication processes, offering solutions that integrate artificial intelligence to detect deepfakes, synthetic identities, and other cyber risks with nearly 99.9% accuracy.

The KYC and AML regulatory ecosystem is continually becoming more complex, making identity verification a strategic necessity rather than an option. Companies implementing advanced technologies like Didit not only prevent fraud but also improve onboarding times by up to 70%, enhancing customer experience and reducing operational costs.

Technological advancements have democratized identity verification: over 150 countries have integrated NFC chips in official documents, and solutions like eKYC allow remote user authentication. This digital transformation benefits both businesses (market expansion, fraud reduction) and users (instant verification, no need to travel).

Facial biometrics and liveness tests represent the future of identity verification. By mathematically analyzing unique facial features and using artificial intelligence algorithms, these technologies can combat sophisticated fraud techniques like deepfakes, pre-recorded videos, and masks, ensuring secure and accurate authentication.

Not all methods for verifying identity documents offer the same level of security and accuracy. According to a recent report by Javelin Strategy & Research, businesses faced $23 billion in identity fraud losses in 2023, a 13% increase from the previous year. Technological advancements have enabled the development of solutions that integrate artificial intelligence, facial recognition, biometrics, and optical recognition techniques, completely transforming how obligated entities validate user identities.

The evolution of verification technologies has drastically changed how organizations protect their integrity, incorporating artificial intelligence, facial recognition, and biometric techniques to create nearly impenetrable security barriers.

OCR (Optical Character Recognition)

Optical Character Recognition (OCR) has become a fundamental development in automating document verification. This technology allows extracting and digitizing printed or handwritten information from official documents instantly and accurately, converting physical documents into digital formats.

The OCR process involves a detailed analysis of each document, capturing and processing characters through image processing algorithms. Some advanced algorithms used by Didit can detect potential alterations or inconsistencies in the document's structure, adding an extra layer of security.

Key advantages of OCR technology for verifying identity documents include:

• Reduced verification times
• Elimination of manual transcription errors
• Quick initial validation of documentation
• Capability to work in multiple languages
• Detection of various document formats
• Comparison with official databases

Statistics show that companies implementing OCR technology in their identity verification and document verification processes improve onboarding times by up to 70%, resulting in a better customer experience.

NFC (Near Field Communication)

Near Field Communication (NFC) technology can virtually eliminate fraud during document and identity verification processes. This advancement enables secure data transmission between devices in close proximity, typically within 4 centimeters.

Why does NFC technology virtually eliminate fraud? Modern official documents incorporate NFC chips that store biometric information and personal data securely and are difficult to alter. When a smartphone with NFC technology (over 90% of current market devices) approaches a document, the chip wirelessly and securely transmits the holder's information, allowing for instant, precise, and secure verification. Cryptographic validation ensures that the information comes from an official source and has not been tampered with.

Currently, over 150 countries worldwide have integrated NFC chips into some official documents, widely adopted in Europe, North America, and Australia.

Advantages of NFC technology against identity fraud include:

• Data encryption
• Digital signature verification
• Real-time biometric comparison
• Detection of counterfeit documents
• Prevention of impersonation

Facial Biometrics

Facial biometrics is a technology poised to revolutionize identity verification. While traditional KYC systems compared documentation with photographs, new facial recognition technologies utilize artificial intelligence to securely identify and authenticate individuals.

This technology is based on the mathematical analysis of unique facial features, transforming physical traits into digital patterns that can be processed, compared, and verified in milliseconds. Active or passive liveness tests, such as those used by Didit, add further security to verifications.

Advanced algorithms and artificial intelligence can combat various types of fraud, including pre-recorded videos, photographs, masks, and deepfakes, ensuring a secure authentication process with nearly 99.9% accuracy.

How to Verify Identity Documents: DNI and Passport Cases

Virtually any company considered a regulated entity has had to tackle the question of how to verify their customers' identity documents. This is typically relevant for sectors related to finance and economy, though increasingly, companies in traveltech, insurtech, or mobility also need to verify their users' documentation. Verifying users' identity documents is a regulatory requirement: KYC serves as the first line of defense against money laundering and terrorism financing prevention.

In many sectors, traditional identity verification methods are still used, requiring the physical presence of individuals at branches or locations. In this process, employees verify the ownership of the presented DNI, passport, or other identity documents, and make a photocopy or scan of them. Afterwards, these must be stored in compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe or corresponding regulations.

However, there is a completely digital alternative that allows online and remote identity verification: eKYC. This allows DNI or passport verification remotely, in a user-friendly and secure manner, without requiring individuals to travel. This process, key within digital onboarding, is fully regulated by various standards. In Europe, eIDAS and eIDAS 2 pave the way for European digital identity and electronic identity verification.

How Does Online Document Verification Work?

The process of remote or online document verification is straightforward and holds the same validity as in-person verification. To do this, the user must verify their official documentation (DNI, passport, driver's license, or residence permit), pass a facial recognition test, and within seconds, automatically and fully, have their identity verified to access the contracted services.

Benefits of Verifying DNI or Passport Online

Verifying users' identities online offers numerous benefits for both businesses and users. To achieve this, it is necessary to have identity verification or KYC software.

Advantages for institutions integrating an eKYC or remote verification service include:

• Providing a secure, online service with guarantees, helping comply with various KYC and AML regulations across different regions.
• Market expansion by offering services beyond their physical influence area.
• Reducing fraud and issues related to manual verification.
• Cost reduction and optimization (up to 90%).
• Uninterrupted verification service.

For users, this system also offers significant benefits:

• No need to travel to a physical location for the verification process.
• Ability to verify anytime and from anywhere.
• Enhanced user experience with identity verification taking only seconds.

Didit: A Free and Unlimited Solution for Remote Identity Document Verification

Didit is a digital identity company revolutionizing the identity verification market by offering a free and unlimited KYC solution. With this, businesses can verify their customers' identity documents remotely without incurring the high costs of similar technologies.

How does Didit work? Our document verification service can handle official documentation from over 220 countries and territories, conducting real-time checks and validations through advanced algorithms to detect inconsistencies and extract necessary data.

After this phase, a facial recognition test is performed. Using biometrics, a passive liveness test, and customized artificial intelligence, we match individuals' faces with those in the documentation, ensuring authentication.

Additionally, Didit offers an optional AML Screening service for businesses that need it, ensuring comprehensive regulatory compliance and combating various types of financial fraud.