Anna, a 24-year-old Brown University graduate, recently landed a marketing associate position and is searching for an apartment and car to facilitate her commute. But her lack of credit history makes it hard to establish her creditworthiness, leaving her credit invisible. Using AI-powered IDV, the rental agency and car financing provider can speed up Anna's application process and verify her identity by cross-referencing her personal information and government-issued ID with reliable third-party sources, allowing her to secure her future with ease.
AI for All
Vouched firmly believes in using AI to solve the world's most pressing social and environmental issues.
With the power of data and machine learning, AI can play a critical role in creating a better future for everyone.
AI Is At The Center of Social Impact
In a world where identity is crucial, AI-powered IDV technology is making a significant impact by providing identity to those who were previously invisible. It's not just about verifying identity; it's about giving people access to vital services that can change their lives:
Jose, an enterprising small coffee farmer in Colombia, is eager to fetch a fair price for his premium-quality coffee beans. However, lacking the required documentation to verify his identity and product authenticity, Jose remains invisible to the fair trade supplier programs. This means he's missing out on potentially life-changing opportunities for greater wealth and well-being. Fortunately, with AI-powered IDV, businesses can now access a more inclusive and efficient verification process, enabling entrepreneurs like Jose to participate in fair trade programs and tap into new markets.
Sally, a low-income woman who does not have a driver's license or a passport, has not registered to vote as she doesn’t have the traditional ID documents. Sally is voter invisible as she is one of the many individuals who may face barriers to accessing voting without a government-issued ID. AI-powered IDV can provide a more accessible and secure way for individuals to verify their identity through personal identifiable information from government and other third party sources allowing Sally to participate in democratic processes.
Safeguarding Refugees
Social impact initiatives such as Freedom ID (https://www.freedom-id.com/), a non-profit verification identity platform born from the collaboration of leading global FinTech, RegTech, Cyber Security, and Identity providers united in the fight against human trafficking and displacement, use AI technology to empower individuals who seek safety and refuge by offering an efficient and secure identification process. Initially developed to protect Ukrainian refugees, Freedom ID has since set its sights on becoming the global standard for safeguarding vulnerable populations in the wake of any crisis.
AI Is Critical For IDV
As personal data, biometrics, and ID documents continuously evolve, verifying someone's identity in an automated way has become increasingly complex and challenging. New sources of data are being created all the time, which adds to the already complicated process of relying on primary sources of ID information.
Data Explosion
The vast amount of data associated with individuals is growing exponentially every day, consisting of both accurate and inaccurate information. Even credit reports, which are crucial for obtaining loans or credit cards, can contain erroneous information that negatively affects a person's credit. This is particularly concerning since credit bureaus hold vast amounts of personal data. The implications of inaccurate data increase significantly as the amount of data grows. It is critical to ensure that the data being used for identity verification is accurate and reliable to prevent potential harm.
Social Media Impact
With the advent of social media and new sources of personal data, verifying a person's identity has become even more complex and nuanced. Social media data, which didn't exist before 2005, is now a treasure trove of information on individuals, as people willingly share their most personal experiences for everyone to see. This abundance of accurate and inaccurate data that each individual has attached to themselves is growing exponentially daily, making it more challenging to distinguish between authentic and fraudulent identities.
Digital Transformation Acceleration
Digital transformation has been a buzzword for years, but the Covid-19 pandemic accelerated the need for companies to digitize their operations. Companies that were not digitally enabled found themselves struggling to stay afloat and quickly realized they needed to adapt to avoid being left behind. However, digital transformation is not just about moving operations online - it also means finding new ways to verify the identity of customers remotely. In the past, companies would rely on physical ID documents and in-person verification, but in a digital world, this is no longer feasible. AI-powered ID verification solutions provide a much-needed solution to this problem, allowing businesses to quickly and accurately verify the identities of their customers and partners, even when they can't meet in person.
ID Document Evolution
Over the years, the evolution of ID documents has been remarkable. For instance, the original driver's license issued in the US did not have a photo. However, as identity fraud became more prevalent, state governments began to add photos to driver's licenses as a way to verify identity. Recently, the Real ID Act was passed in the US, which requires a stricter set of standards for state-issued IDs, including more secure features and identity verification processes. Outside the US, many countries have national ID cards that are used as a primary form of identification. For example, India's Aadhaar card is a biometric-based national ID system that has been in use since 2009, and it currently covers over 99% of the country's adult population. Similarly, Brazil has introduced a Mobile ID program that allows citizens to use their mobile phones as a form of identification, which is particularly useful for those who don't have traditional forms of ID. As ID documents have evolved, so too have the challenges associated with verifying them. With the increasing prevalence of digital IDs, biometric data, and new sources of personal data, the process of identity verification has become more complex and nuanced.
Fraud Acceleration
As technology continues to advance, so does the sophistication of fraudsters and their methods. From deep fakes to synthetic identities, the landscape of fraud is becoming increasingly complex and difficult to detect. With the potential impact of generative AI, which has the ability to create highly realistic and convincing fake identities, the need for advanced and sophisticated ID verification measures has never been greater. As the threats become more sophisticated, so must our defense against them. A human review alone cannot accurately and timely keep up with these changes, making AI-powered identity verification critical for preventing fraud and protecting individuals' personal information.
Economic Impact
McKinsey Global Institute's report "Digital identification: A key to inclusive growth" emphasizes the significance of digital identification as a catalyst for economic empowerment and inclusive growth. Analyzing nearly 100 ways in which digital ID can be used in seven countries including Brazil, China, Ethiopia, India, Nigeria, the United Kingdom, and the United States, the report demonstrates how well-designed digital identification can facilitate access to critical services such as banking, education, and government benefits, and how full digital ID coverage could unlock economic value equivalent to 3 to 13 percent of GDP in 2030.