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A business must be able to establish certainty around the validity and authenticity of digital interactions to protect itself and its users. With a threat environment that grows more complex every day, risks such as account takeovers and identity theft are on the rise. A reliable, secure method to verify user identity is a must-have for any organization with an online presence. From healthcare and finance to e-Commerce, identity verification helps halt unauthorized actions and combat fraud.
Across diverse sectors, organizations are increasingly turning toward using an identity verification API. These solutions, which can integrate directly with apps and websites, provide a rapid and reliable means to verify identities. The right API can reduce friction for users and offer enhanced security in a seamless experience already familiar to many people. The factors that contribute to a trustworthy API and the benefits they unlock are worth exploring as you consider your company’s approach to this challenge.
At Telesign, our solutions support the creation of robust, reliable identity verification strategies powered by modern APIs. This article examines what features an API should have and how they deliver more secure digital experiences. We’ll highlight the benefits of using an advanced API, touch on how a business might engage with implementation, and explore basic examples of use cases.
With this overview, businesses can gain insights into today’s solutions and better evaluate how an API aligns with their needs. Let’s get started.
Table of Contents
- What is an identity verification API?
- What capabilities should a verification API have?
- Central functions of reliable verification APIs
- How online identity verification APIs work
- Five beneficial reasons to deploy an API for verification
- About API implementation and integration
- Identity verification use cases by industry
- Industry trends and future outlook
- Explore robust identity verification for your business
What is an identity verification API?
An identity verification API is a tool that facilitates rapid, secure communication between your business and a customer to verify their identity before accessing a digital system.
In a well-known and basic application, the API handles the process of sending the user a one-time password via SMS. When the user inputs that code in an app or on a website, the API verifies that the code matches what the system generated. Since users are typically assumed to remain in control of their device, this exchange signals a positive identification of the authorized individual.
More advanced identity verification features may handle the collection and extraction of data from documents to match against government databases. Some APIs can even compare a user’s biometric features to a secure record. The online identity verification API facilitates these connections between business systems, the user’s device, and supporting services. The real-time nature of the exchange accelerates verification and provides a more seamless experience for users.
What capabilities should a verification API have?
Selecting an API requires evaluating solutions based on how well the technology aligns with the organization’s needs. To deliver the best possible results, the API you choose may need to support one or more areas of critical functionality. The attributes your business needs can differ based on industry, regulations, volume and other factors. Let’s review five key features.
Multifactor authentication (MFA)
Multifactor authentication (MFA) is an approach to access control that relies on more than a single form of identification. Users must provide at least two forms of ID to access an account or take certain actions. These IDs can take the form of something a user knows, a device or information they possess, or biometric data. Most commonly, MFA today involves a password followed by another authentication method, such as a one-time password (OTP).
Telesign’s Verify API is a plug-and-play solution that enables rapid adoption of MFA architecture that supports communication over seven different channels. Deploying MFA doesn’t have to be a complex challenge. Instead, the right solution lets your organization strengthen security with MFA in a manner most users are already familiar with.
SMS-based verification
While users may receive OTPs through various channels, SMS remains the most popular choice due to the ubiquity of the protocol and the widespread availability of SMS-capable devices. The API you select should have the means to reach users via this preferred channel. It should also have the capacity to ensure consistent, successful delivery. With so many countries and phone numbers used globally, that can be challenging.
With Telesign’s SMS Verify, organizations can reach 97% of the world in 80 languages and over 230 countries and territories. It attains reliable delivery at speed and scale. SMS Verify uses phone number intelligence to cleanse international phone numbers. Weeding out fake numbers as part of its digital fraud detection feature to achieve robust delivery rates, reliability and security.
Biometric verification
An API that supports biometric verification is a valuable solution that adds another layer to digital identity confirmation. This area continues to grow as an essential element of a digital identity. In the European Union, for example, e-Commerce regulations require strong customer authentication (SCA). SCA mandates MFA using at least two factors, one of which can be biometrics.
The API you select should comfortably support the communication and confirmation of biometric data as an option for users. Biometrics aren’t inherently the most secure type of authentication, but as an additional factor, they provide a more personal form of identity that improves confidence. Though biometrics have traditionally been expensive, continued innovations in this space may make them more accessible in the future. Organizations should prepare for that outcome when integrating APIs.
Real-time fraud detection
MFA is a useful solution to protect customer accounts, but fraud continues to impact businesses significantly. Scammers most often target e-commerce merchants, but any organization can be a victim. Failure to stop fraud can be expensive, too, with billions of dollars lost to deception annually. By the late 2020s, cumulative losses could exceed $300 billion. A solution that maintains account integrity through real-time fraud detection is vital to preventing account takeovers and demonstrating reliability to users.
Solutions such as Telesign Verify Plus equip your company with such real-time capabilities. This add-on leverages advanced, proprietary machine learning to evaluate multiple fraud signals simultaneously. These signals include phone number intelligence, phone attributes and more. In just milliseconds, the model develops a risk recommendation for any given user and automatically determines whether to send an OTP to the user’s device. Such an approach prevents fraudsters from attempting account takeovers if there is a risk that the user requesting verification is not the real account holder.
Global compliance support
Several countries and regions worldwide enforce regulations to protect user privacy and create safe digital environments. The API you select should support your compliance efforts globally. Standards such as PSD2, TCPA, and HIPAA all deserve consideration when you deploy an API. Telesign Phone ID, with its global reach, offers the necessary features to support secure communications even in highly regulated industries. Curtail the risk of fines and enjoy peace of mind instead.
Central functions of reliable verification APIs
An API solution that simplifies SMS verification, supports biometrics, and ensures global compliance is essential. Yet, these notable features aren’t the only desirable aspects of an API. Additional characteristics contribute to a well-rounded approach that enhances the user experience.
- Real-time verification
The near-instant nature of verification is a core advantage of API usage. The right solution allows you to verify identities immediately at specific junctures, especially during onboarding. An SMS OTP should arrive promptly after a user requests it. The sooner it appears, the sooner they can confirm their identity. When OTPs secure steps such as account creation or high-value transactions, speed is essential for both the user experience and the business.
- Flexibility for authentication methods
OTPs may be a popular method for verification, but we must not forget that many techniques exist to authenticate a user’s identity. An API should be flexible enough to support multiple options and to integrate with additional systems that power certain checks. For example, document verification is a pillar of the AML/KYC procedures that financial institutions must follow by law. An API that supports transmitting document data for extraction and validation is as valuable as one that can analyze biometrics or reach users via messages.
- Workflows you can easily customize
Even businesses within the same industry may have different identity verification needs. An API that offers flexible verification workflows is an asset to companies seeking greater control over the process. A blend of plug-and-play functionality and customizability is versatile enough to meet needs across a diverse range of industries.
- Robust risk scoring and reports
APIs that generate risk recommendations do so by analyzing multiple factors. Risk assessments are a crucial element of API operations. A user might often be in control of their device, but fraudsters can and do execute attacks that compromise SMS verification security.
An API capable of detecting signals indicating a fake phone number or unusual interactions can stop potential fraud before it starts. Combined with reporting tools, businesses can better track verification data to identify problems or opportunities for improvement.
How online identity verification APIs work
Let’s look at how identity verification APIs function in practice. Here, we’ll consider a basic example of how to use Telesign’s Verify API with a one-time passcode generated by Telesign for you. Businesses may also choose to implement a workflow that uses an OTP you generate instead. Let’s examine the steps as they occur in real time.
The process begins when a user attempts to take action on an application maintained by your business. We’ll use a sign-in attempt as our example. After the user initiates the sign-in request, the following occurs:
- Your application sends an electronic request, including the user’s phone number, to Telesign via the SMS Verify API.
- The API provides an HTTP response to your system, confirming that Telesign is in the process of messaging your client. Every transaction comes with a Reference ID that correlates with this interaction.
- Telesign generates a unique one-time passcode and sent to the user’s device via SMS protocol.
- Upon receipt, the user submits the OTP to the challenge prompt on your application.
- Your application communicates again with Telesign via the API, sending the transaction Reference ID and the user-submitted OTP.
- Telesign checks for a code match and sends back an HTTP response with the verification status, such as VALID or INVALID. If the reaction is VALID, your system allows the requested action (logging in) to proceed.
This flurry of activity takes place in real-time behind the scenes. It all happens under strict security, too. Telesign’s Verify API uses Transport Layer Security (TLS) versions 1.2 and 1.3 to encrypt communications between users, applications, and Telesign services. Telesign relies on AES-256 and uses SHA-2 for secure hashing for additional encryption.
Verify API also supports additional channels beyond SMS, including RCS, WhatsApp, and email. Any of these channels work well for authentication flows, which can include:
- Onboarding new users during the account sign-up and creation
- Account sign-in attempts
- Password reset attempts
- Account information modifications
- Verification of transaction requests
From the user’s perspective, it often takes only a few seconds to request an OTP, submit it, and complete one of the actions above. A business can even configure the API to support additional custom authentication flows for more specific events. It’s a fast, secure procedure that illustrates the usefulness and flexibility of an integrated customer identity verification API.
Five beneficial reasons to deploy an API for verification
We’ve explored the capabilities of modern verification APIs, what they must be capable of, and how they work. But what are the potential positive outcomes of API implementation within your organization? There are five key benefits to consider.
- Strengthen your security
Threat actors continuously attempt to bypass security measures and exploit weaknesses for illegal purposes. Even a single instance of unauthorized access can lead to account takeovers, payment fraud, or other issues. The persistent nature of these threats demands constant vigilance. An identity verification API acts as a gatekeeper that can close the window of opportunity for someone to misrepresent their identity.
An API enables simple, fast user verification at critical points. For example, APIs help increase security at sign-in or before events such as bank transfers. Multifactor authentication builds confidence in a user’s identity and contributes to fraud protection.
- Unlock efficiency through automation
Manual processes are prone to human error and are often slow to execute. In verification, reliance on manual work introduces opportunities for mistakes that could compromise user accounts or organizational security. The risk of error is not the only drawback; manual verification is often slow as well. APIs integrate automation to elevate identity verification efficiency, delivering near-instant results.
- Enhance customer experiences
An API that enables rapid access to multifactor authentication fosters an improved customer experience, especially during onboarding. Simple, fast onboarding makes your services more accessible and secure. A smooth experience also provides an early impression of reliability and ease of use. With an integrated API that lets users validate their identity quickly, you reduce friction in account creation and management to create more quality interactions.
- Generate cost savings
Manual verification is more expensive than an automated API-driven solution. An employee tasked with verification requires training and compensation, and time spent on verification detracts from higher-value tasks. Additionally, less rigorous manual processes can increase fraud losses. Once set up and integrated into your systems, even at-scale, API operation can be most cost-effective over time.
- Achieve more reliable regulatory compliance
Know your customer (KYC) and anti-money laundering (AML) regulations are central concern for businesses in regulated industries. The law requires due diligence to prevent the misuse of financial services, and APIs have a role to play in fulfilling legal obligations. Through document scanning or even biometric analysis, an API can provide a strong, positive verification of a user’s identity. Such outcomes simplify regulatory compliance at the required stages.
About API implementation and integration
A straightforward approach to implementation is an integral part of API adoption. While some approaches require more technical expertise than others, Telesign provides in-depth resources to support the implementation of Verify API in all its forms. This includes multiple SDKs for managing core tasks such as sending OTPs via your preferred channel, checking verification status, and more.
SDKs for the Telesign SMS Verify API include support for:
- Node.js
- Python
- Ruby
- C#
- Java
Also, SDKs for Android and iOS mobile operating systems allow for direct integration of identity verification into your applications. The process is easy to execute and highly flexible to align with organizational and security needs.
An extensive online knowledge base filled with documentation makes it simple to get started. Professional support available to developers offers an additional resource for troubleshooting and guidance. With step-by-step online guides, Telesign products feature a high degree of usability and flexibility, making them ideal for verification at scale in any industry.
Identity verification use cases by industry
Where do we find identity verification APIs commonly used today? As a technology in widespread use, many users understand multifactor authentication and even anticipate its presence in some secure environments. Let’s briefly discuss why different industries rely on technologies like Telesign’s Verify API.
Financial services
Many financial services organizations must abide by the KYC and AML regulations that aim to prevent fraud and criminal activity. That means there is a regulatory demand for these organizations to verify identities. Some of the processes where a verification API is particularly helpful include:
Financial services worldwide keep their platforms secure and protect consumer accounts with an API that supports workflows with document verification.
- Opening a new bank account
- Making a financial transaction over a specified value threshold
- Processing and approving loan applications
E-Commerce
There are billions of dollars lost to fraud perpetrated against e-Commerce merchants every year. A proactive stance toward user verification and a security-minded API as support can help protect merchants from the misuse and abuse of their systems. Some applications include:
- New e-Commerce account creation
- Adding or modifying payment information or other sensitive account details
- Authorization for purchases
Today’s e-Commerce giants secure accounts with MFA, and APIs play a part in delivering rapid verification that doesn’t significantly disrupt a valid user from completing a purchase.
Telecommunications
Telecommunications providers face the threat of SIM swapping fraud, which can seriously impact users. A fraudster may try to activate a new SIM card and steal an individual’s phone number to intercept SMS OTPs intended for the legitimate owner of the number. Telecom providers must guard against non-technical attack vectors, such as social engineering. They can also add layers of security to verify that a user genuinely wants to transfer their number—for example, the requirement to pass an MFA check before transfers.
Healthcare
The internet continues to connect patients and healthcare providers in novel ways. The growth of the telemedicine sector makes prompt care and insight more accessible but also presents new challenges. Healthcare providers must comply with rules such as HIPAA to protect patient information.
An individual’s digital healthcare account may include sensitive care information. MFA through a verification API is an accepted practice for keeping accounts secure. This combination better protects patient data against unwanted intrusions while helping providers meet HIPAA requirements.
Industry trends and future outlook
Even with today’s robust methodologies for user identity verification, there’s always room for improvement. Innovative research and development continue as new technologies emerge to strengthen security further and support smart access controls. There are several trends to note as we look to the future of this industry.
Machine learning and artificial intelligence
Machine learning (ML) and artificial intelligence (AI) have already made an impact on identity verification. Machine learning algorithms can consume and analyze large datasets to detect patterns a human might never notice. Such patterns can provide new ways of identifying users by behavior or better combat fraud through anomaly detection. Likewise, artificial intelligence supports further digital fraud prevention efforts when applied to elements such as document verification. These models evolve to detect subtle fraud signals even in noisy data and will be an asset in the battle against digital threats.
AI recognition capabilities will also play a role in another trend.
New biometric recognition
Many users today are already somewhat familiar with biometrics, such as fingerprint and facial recognition, due to their smartphones. In the future, biometrics will play a bigger role in verifications due to their unique properties. We should anticipate growth in new biometrics methods that go beyond today’s standards. Other biometric characteristics that may one day verify identities more routinely than today include voice prints, iris patterns, and more advanced facial and fingerprint recognition technology.
Today, “liveness checks” are already in use in some industries. This biometric identification involves a user appearing in a live video. Users might need to turn their heads, smile, nod, or otherwise engage in ways that signify they are the real person. As new biometric verification technologies emerge, however, we can expect threat actors to redouble efforts to find ways to spoof identities and defeat these methods. Artificial intelligence may be a key asset in the prevention of such attacks.
Future-proof solutions from Telesign
Telesign continues to monitor the development of new threats and emergent technologies. Verify API contributes to preparedness for organizations concerned about future difficulties, such as detecting deepfakes. Strong multifactor authentication, like what’s possible with the API, will play a role in the continued prevention of unauthorized access. Further development and integration with AI that raises red flags when anomalies occur will also continue to protect businesses that rely on Telesign APIs.
Explore robust identity verification for your business
Known and emerging digital threats continue to complicate security for businesses. With more of our lives online than ever, the danger could affect everything from an individual’s online bank account to the sensitive information a doctor holds in a medical file. Organizations must take strong steps to ensure that only legitimate users with authorization can access sensitive resources, payment systems and more. Online identity verification APIs make that possible.
With an API, you can strengthen security with proven methods and best practices. Verification efficiency improves with such solutions and accelerates the process, providing end users with a simple, intuitive experience. Reliable security and a clear commitment to user data protection contribute to building trust with customers. Ultimately, even these efforts can positively impact how customers perceive you.
What is the state of your current approach to identity verification? Is there room for improvement? Now is the time to evaluate whether API integration could deliver the enhanced outcomes your organization desires. Overhaul your approach and unlock advanced security and seamless reliability with Telesign’s Verify API and additional solutions.
Connect with the Telesign team today to learn more about how you can improve your customer identity verification processes in your business today.
