IDENTITY FRAUD
January 31, 2023
•
6
MIN READ

The Top US Regulations Requiring Identity Verification Technologies‍

The Top US Regulations Requiring Identity Verification Technologies

As the digital age continues to surge, so too does the need for identity verification technologies. In the United States, there are several regulations in place requiring businesses to use such technology. These regulations are aimed at preventing fraud and other illegal activities, as well as ensuring consumer safety. In this blog post, we will take a look at some of the top US regulations requiring identity verification technologies. From verifying customers’ identities online to verifying medical records and much more, we’ll explore how these regulations impact businesses across the country.

Impacting Financial Services, Websites, and E-commerce

There are many federal laws and regulations requiring the use of identity verification technologies in financial services, websites, and e-commerce. The most common are the USA PATRIOT Act, the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Children's Online Privacy Protection Act (COPPA).

The USA PATRIOT Act was enacted in response to the terrorist attacks of September 11, 2001. It requires financial institutions to verify the identity of their customers before opening an account. The GLBA requires financial institutions to protect the confidentiality and security of customer information. The FCRA regulates credit reporting agencies and requires them to verify the identities of consumers who request their reports. COPPA protects children's privacy online and requires website operators to obtain parental consent before collecting, using, or disclosing personal information from children.

Identity verification technologies help businesses comply with these laws and regulations by verifying that consumers are who they say they are. Standard identity verification methods include knowledge-based authentication (KBA), which asks questions that only the consumer should know the answer to; biometric authentication, which uses physical or behavioral characteristics to verify identity; and two-factor authentication, which combines two different methods, such as a password and a fingerprint.

Businesses must choose an identity verification method that meets their needs while also complying with relevant laws and regulations. For example, KBA is typically used for account opening, whereas biometric authentication may be used for

Financial Services Sector

The US financial services sector is one of the most highly regulated industries in the country. Financial institutions must comply with various federal and state regulations, including those relating to identity verification.

Several key regulations require financial institutions to use identity verification technologies, including the Gramm-Leach-Bliley Act (GLBA), the USA PATRIOT Act, and the Fair Credit Reporting Act (FCRA).

The GLBA requires financial institutions to take measures to protect the security and confidentiality of customer information. This includes verifying the identity of customers before granting access to account information or processing transactions.

The USA PATRIOT Act requires financial institutions to verify the identity of their customers before opening accounts or conducting transactions. Financial institutions must also maintain records of customer identification information for a minimum of five years.

The FCRA imposes several requirements on credit reporting agencies, including verifying the identity of consumers requesting credit reports. Credit reporting agencies must also give consumers a notice of their rights under the FCRA, including the right to dispute inaccurate information on their credit reports.

Healthcare Sector

The healthcare sector is one of the most heavily regulated industries in the United States. Federal and state laws impose a number of requirements on healthcare organizations, including the need to verify the identity of patients and employees.

Several different technologies can be used to verify identities, including biometrics, smart cards, and knowledge-based authentication. Biometrics, such as fingerprint or iris scanning, is perhaps the most secure identification method, but it can also be the most expensive. Intelligent cards are less costly than biometrics but still provide a high level of security. Finally, knowledge-based authentication relies on something that the user knows, such as a password or PIN, and is, therefore, less secure than other methods but can be more convenient for users.

Organizations must choose the identity verification technology that best meets their needs based on a number of factors, including cost, security, and convenience.

Children's Online Privacy Protection Rule

The Children's Online Privacy Protection Rule (COPPA) is a Federal Trade Commission (FTC) rule that applies to operators of websites or online services directed to children under 13 years old, or general audience websites or online services that have actual knowledge that they are collecting personal information from children under 13.

COPPA imposes specific requirements on operators of websites or online services directed to children under 13 years old, including:

- Obtain parental consent before collecting, using, or disclosing personal information from children under 13;
- Provide parents with notice of their practices regarding the collection, use, and disclosure of personal information from children;
- Give parents a choice to limit further uses and disclosures of their children's personal information; and
- Keep secure the personal information collected from children.

In addition, COPPA requires operators to take reasonable steps to ensure that third parties do not collect personal information from children through their website or service without parental consent.

Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act (GLBA) was enacted in 1999 and requires financial institutions to take steps to protect the confidentiality and security of customer information. GLBA applies to any company that is considered a financial institution, including banks, credit unions, securities firms, and insurance companies.

Under GLBA, financial institutions must develop and implement a comprehensive information security program that includes physical, technical, and administrative safeguards. Physical safeguards include securing facilities, equipment, and records from unauthorized access, use, or disclosure. Technical safeguards involve using technology to protect data and systems from unauthorized access, use, or disclosure. Finally, administrative safeguards are policies and procedures designed to ensure the security of customer information.

In addition to developing and implementing a comprehensive information security program, financial institutions must also take steps to ensure the proper disposal of customer information. For example, customer information that is no longer needed should be destroyed or disposed of in a manner that protects against unauthorized access or use.

The GLBA also requires financial institutions to provide customers with privacy notices that explain how customer information is used and protected. In addition, customers have the right to opt out of having their information shared with nonaffiliated third parties for marketing purposes. Financial institutions must also provide customers with annual notices informing them of their right to opt out of having their information shared with nonaffiliated third parties for marketing purposes.

USA PATRIOT Act

The USA PATRIOT Act was passed in 2001 in response to the 9/11 terrorist attacks. It requires all financial institutions to verify the identity of their customers. This includes using biometrics, knowledge-based authentication, and physical document verification.

Driver's License and State ID Issuance

In the United States, driver's licenses and state identification cards are issued by each state's department of motor vehicles. To get a driver's license or state ID, applicants must provide proof of their identity, residency, and sometimes their Social Security number.

Many types of identity documents can be used for these purposes, but birth certificates, passports, and Social Security cards are the most common. In addition, some states require applicants to provide additional documentation, such as utility bills or bank statements.

Verifying an applicant's identity can vary from state to state, but most states require that DMV employees verify the document against an official database. For example, when an applicant presents a birth certificate, the DMV employee will typically check it against the National U.S. Border Patrol Database or a similar database.

Once an applicant's identity has been verified, they will be issued a driver's license or state ID card. These cards usually have the applicant's name, photo, date of birth, address, and other important information. In some states, these cards also have security features such as holograms or watermarks to prevent fraud.

Voting

Regarding voting, the US has a long history of using various forms of ID verification. The most recent addition to this list is electronic voting machines, which are now required in some states. While many believe these machines are more secure than paper ballots, there is still some debate about their efficacy.

To vote in the US, you must be a citizen and registered. You will then need to present a valid form of ID at your polling place. The most common form of ID is a driver’s license, but other accepted forms include a passport, state-issued ID card, or military ID. If you do not have any of these forms of identification, you may still be able to vote by signing an affidavit affirming your identity.

Once you have presented your ID, you will be given a ballot and asked to cast your vote. If you are voting in person, you will likely use a paper ballot that you will mark with an “X” next to your chosen candidate. If you are voting by mail, you will receive a ballot that you must fill out and return to your local election office. Alternatively, some states allow voters to vote electronically using a touch screen machine.

No matter how you choose to vote, it would be best if you took the time to research the candidates and issues on your ballot before heading to the polls. This way, you can

Conclusion

Identity verification technologies play a huge role in protecting US citizens and businesses from fraud. The top US regulations requiring identity verification technologies have been discussed in this article, including the PCI DSS, KYC, HIPAA, and CIPA. With all these regulations in place, there is less of a chance for criminals to take advantage of people or companies. It's essential to ensure that you follow these regulations if you want your business to comply with state laws.

Author: Marc Pickren

‍

#BiometricIdentification, #MultifactorAuthentication, #IdentityVerificationSolutions

#DocumentVerification #DigitalIdentity, #IAMSolutions, #IdentityRiskManagement, #FacialRecognition #KYCCompliance, #SecureAuthentication

‍

‍

‍