An efficient identity verification system helps assure compliance for organisations that offer age-restricted products or services through online channels.
With digital identity verification (IDV), the consumer’s personally identifiable information (PII) data, such as name, address, and date of birth, is obtained with their consent and then compared to data sources to see if the information matches or in other words, it is determined whether the customer is who they claim to be.
Plus, additional data points on top of PII can be layered- to increase the level of trust in that identity.
What can be additional data points?
Email or phone contact information, which is confirmed using two-factor authentication.
Another useful layer of information is available through ID document verification.
ID documents are photographed and sent online. These photographs are then automatically matched to ID document templates to detect fabrication or change. The data can also be gathered using optical character recognition (OCR) and then processed through the IDV process.
These identity verification systems not only give age verification compliance checks, but also add a layer of fraud prevention.
How?
Online verification is quick and simple for customers to complete and hence it allows them to proceed with their transaction without being burdened by additional processes to establish their identity.
One of the most important reasons for businesses that offer age-restricted products and services is to ensure ease for genuine clients while decreasing the possibility of minors gaining access to such things.
What is an online age verification system?
An online age verification system compares the user’s personal identifiable information to many data records and sources to ensure they can legally access the desired services or products.
 For an age verification system to be effective, it must prioritize two main aspects-
Providing a seamless user experience, and
Preventing minors from circumventing the security measures.Â
Age verification systems can take many forms, from a simple checkbox where users indicate they are over 18 to more sophisticated methods like video conversations where candidates are requested to produce their ID during a job interview.
💡 Related Blog: How age verification protects your business?
In general, all modern-day verification solutions rely heavily on electronic approaches that employ artificial intelligence (AI) and facial recognition technology.
Why is it important?
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 Complying with legal obligations
The usage of age verification on the internet assists businesses who provide age-restricted products or services in meeting their legal obligations.
It also eliminates the possibility of legal ramifications if they supply age-restricted content to underage users.
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 Securing online deals and transactions
Online age verification is an important tool for preventing minors from making age-restricted online purchases.
These could involve in-app purchases or purchasing age-restricted items such as alcohol or tobacco.
If age verification is ineffective, minors may be able to circumvent it.
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  Preventing access to minors of unauthorized content
Minors can easily access inappropriate content online.
Adult media companies can utilize age verification to prevent underage users from accessing unauthorized content such as violence, pornography, and gambling.
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 Preventing access to minors of unauthorized content
Minors are also an easy target for fraudsters, who take advantage of their youth and inexperience.
Age verification makes it more difficult for fraudsters to overcome the barrier it creates.
This decreases the likelihood of their preying on youngsters via unauthorized credit card use and phishing frauds.
How does this work?
Different approaches and technologies are used to ensure that a user meets the age requirement to access age-restricted content.
Algorithms and Machine Learning
Algorithms and machine learning are effective techniques for validating age. They work together to provide accurate and quick age verification.
For example, machine learning algorithms may assess ID documents for authenticity and extract information. They pinpoint key components, such as language and security mechanisms, to detect forgeries or inconsistencies.
The same is true for detecting facial features by ensuring that the individual in question matches the one described in the provided documents. Algorithms employ facial traits like skin texture and bone structure to estimate the user’s age accurately to some extent.
Encryption and Data Security
Encryption and data security play critical roles in age verification since sensitive information is collected and processed throughout this procedure.
Online age verification solutions use encryption methods to convert sensitive information into unreadable code.
To ensure the user’s confidential information is entirely secure.
Even if attackers gain access to the stored data, they will be unable to decode or utilize it without the encryption key.
How is it done?
Age verification by self-declaration – Low-security method for verifying users’ ages. The user simply enters their age or date of birth. This system relies on users supplying truthful information. Without a way of authenticating a user’s age in place, it is easy for minors to pass through.
Age verification using a credit card – The companies use credit card details or credit history information to verify users’ ages.
Age verification via a database check – A credit bureau check is a specific form of database check. Businesses can, however, check an user’s age/date of birth against a variety of other validated databases, such as voter registries and utility suppliers.
Age verification through a document check- Online document checks can be used by organisations to verify age with high accuracy. It is beyond merely asking users to scan an identity document and instead request a photo of their ID as part of the onboarding process.
Online age verification regulations in the U.S.
In the US, businesses need to follow both state and federal rules and regulations governing age verification for the sale, distribution, and delivery of age-restricted items such as alcohol and tobacco.
At the federal level, the National Minimum Drinking Age Act of 1984 requires companies to verify that a consumer is at least 21 years old before selling or receiving alcohol.Â
Louisiana Act 440 pertains exclusively to companies that sell or disseminate pornography online. The provisions compel those businesses to verify that a user is at least 18 years old before providing access to pornographic content.
While Act 440 does not force all companies to adopt a certain method of verification, it does include government ID verification and database verification as possible choices.
The California Age-Appropriate Design Code Act (AADC) applies to any business that may be accessed by children. It mandates such companies to create stricter privacy policies for all users under the age of 18. Companies who fail to comply with the requirements of the law may incur penalties of up to $7,500 per infringement per child.
Signzy’s advanced online age verification system
As the digital sector evolves, staying ahead of regulatory standards becomes increasingly important, and businesses can benefit from the experience of a dedicated third-party identity verification service such as Signzy.Â
With over 240 APIs and access to credible data sources, Signzy can easily orchestrate and automate age verification operations, assuring compliance while providing a frictionless user experience.
Age verifications are normally done in three seconds using our trusted identity infrastructure. This vastly outperforms traditional identity verification providers, who rely on human review procedures, frequently resulting in hours or even days for result delivery.
Sources:
https://ftxidentity.com/blog/online-age-verification-how-to/
https://withpersona.com/blog/incorporate-age-verification-into-business
