There are many ways a business can choose to function. But the smartest way to do it is to up the ante on security and verification – and this includes not just with your external organizational infrastructure but with the internal identity validation process.
If you think your business is fine with a traditional screening process, then think again. It’s 2021, and the security breaches and identity manipulation cases are at an all-time high.
With 170 cyber-attacks being reported every hour, advanced identity validation and verification processes are not just an added advantage, they’re a necessity.
For businesses and entities that are operating online with a complete digital infrastructure, it is all the more important to leverage identity validation tools and makes informed business decisions.
What Is Identity Validation?
When businesses want to hire a professional or associate with a new investor or partner with another company, they run a background check on the entity or the person to understand where they’re coming from.
A basic background check will reveal their criminal history and/or financial transactions. However, we’re not talking about this basic screening.
When you want to associate with a business or an entity for the long run, you want more than just a priority screening. You need to vet the individual or the entity thoroughly.
No matter how good someone’s reputation is, if they walk into your office with dirt on their back, you’re compromising your entity’s reputation and security.
Now, this non-compliant individual or entity could be your next business partner, your new recruit, your next CEO, your next financial investment, and more.
At the worst, they can mean the end of your business.
Now imagine if this entity or an individual looks like they come with a clean history but don’t.
This entity or an individual might have a history of financial fraud or some kind of engagement with international terror groups or terrorism activities, or they might be on the watch list of the US government or flagged by the European Sanctions List.
It could also be someone who is banned by the US government for security reasons or someone who does not have a clean tax history with the IRS.
No matter their history, you are associating with a person or an entity that does not have a complaint history.
And this can cost you.
This is where identity validation (also known as identity verification) comes into play.
Identity validation or identity verification is a sequence of security checks, which when conducted, allow you to review an individual or entity’s entire history as recorded and identified in the authorized databases.
It allows you to uncover the real identity of an individual or entity.
How Does Identity Validation Work?
Identity verification or validation is nothing but a verification process, which requires you to produce certain information about the search entry, and the authorized database would produce the results associated with that information.
For example, if you want to search the tax history of a top-tier company in the U.S., all you need is their TIN or EIN and location, and you will be able to view their tax history.
From a layman’s perspective; it’s like Google but for business identity.
But it’s not so easy.
More often than not, these databases are not available to the public at large as they contain vital and private information about an entity or an individual, and this information is at the risk of being abused.
This is why authorized databases, such as the U.S Department of Treasury are packed with advanced security and encryption standards.
Identity Validation Is Not New
This is not a new terminology that’s making rounds in the IT sector right now. It’s an age-old process that’s been “renovated” and “remodelled” to give it a fresher look and appeal.
Businesses around the world have been using various identity validation methods and processes for years in order to verify the real identity and compliance status of an entity or an individual.
Health care, finance, banking, hospitality, travel, insurance, gig economy, and other industries have been leveraging identity validation processes for years.
However, none of the identity validation tools or processes is as advanced as they are today.
In 2021, you can unlock the history of a tier-1 global business in less than a few seconds and you will find real-time results with the most accurate information available in the authorized databases.
The reason I keep bringing up “authorized” is because the platform or the “gateway” that allows you to conduct such security checks must be authorized by the government or its organizations. This way, your search and find results that are already stored in the databases and can be viewed with certain permissions.
Does Your Business Need To Have An Identity Validation Process In Place?
You need to have an identity validation process or infrastructure in place if you want your business to grow and stay compliant.
Businesses do not realize the importance of vetting an individual or an entity. By validating the details provided by this possible association, you are avoiding risk and several security breaches.
Advantages Of Identity Validation Or Identity Verification
- Improved approval rates
- Improved transaction monitoring
- Improved resource awareness
- Minimized business risk
- Enhanced legal protection
- Improved documentation & record keeping
- Improved audit reports
- Improved compliance
- Penalty prevention & risk mitigation
- Enhanced security measures
And many more to name.
Self Compliance – The #1 Advantage Of Identity Verification
However, the most significant advantage of integrating an identity verification or identity validation system in your business ecosystem is self-compliance.
As important as it is to ensure that you are associating with the right businesses or individuals, it is just as important to ensure that your business is compliant with the state and federal authorities.
A state and federal compliant identity verification API like TIN Verify will allow you to do just that.
TIN Verify – The Modern Entity’s Identity Verification API
TIN Verify is a real-time identity verification API that allows you to check thousands of businesses and individuals against authorized databases and watch lists.
With TIN Verify, you will be able to check the following databases.
- TIN & Name Match – Internal Revenue Service
- OFAC Watch List
- European Sanctions List
- Death Master File
- Specially Designated Nationals
- Politically Exposed People
You will need to have some information about the search entry by your side when you want to conduct the check, such as:
- Name of the business or the individual
- Tax identification number or EIN
- Location of business
- Other details as necessary for the check(s)
You will be able to view the real-time results in just a few minutes.
Check the tax compliance status, license authorization status, criminal liability of an individual, financial history, identity compliance, and many other checks with TIN Verify.
