Why is a Site Asking to Verify my Identity?

If you’ve ever used the internet to purchase goods and services then there is every chance that you may at some point have been asked to verify your identity. This can cause a lot of people great frustration and you can be asked to do this for many different reasons. For this post, we are going to look at why you may be asked to verify your identity and the reasons behind this.

Why is Identity Verification Required?

Quite simply, for a lot of businesses, verifying their customers is the law! You will most likely be asked for this documentation when you use a site that involves finances. This can be a currency exchange, an online bookie, a casino or even a bank! Quite simply, there are many reasons within confines of the law that would require a customer to verify their identity but mostly, this will be on sites that involve finances.

So why exactly is this? Well, sites that use finances such as money often can be the target for many different types of cybercrime. By identifying who is using these products and services, the company can do all that they can to adhere to legislation and prevent online cybercrimes such as money laundering and identity theft. For this purpose, you can begin to see why verification is required by so many businesses that you interact with online.

How Do You Verify Your Identity Online?

A lot of the more modern websites that require this facility will use integrated technologies to help streamline the process and make it easy for customers or for website visitors. For example, a lot of cryptocurrency exchanges including Coinbase will utilise technology from companies such as Cognito and this will allow you to easily verify your identity using your computer or mobile phone. Generally, all you need is a device with a camera to complete the process.

You will be asked for a valid ID such as a passport or a driving licence and then you will be able to take a portrait-style photo of yourself to complete verification. Then you will simply have to wait until the process has been completed by the website. Different types of website have different names for verification. You may find that online bookmakers or casinos call this process KYC which stands for Know Your Customer.

Is this a Normal Process?

If you’ve never had to verify your identity online before then being asked to by a company may seem a bit intrusive but it is generally a pretty normal process to be asked to complete online. You have the right as a consumer to know why you are being asked for certain documents and you can often find an explanation from a site in their website terms and conditions or in an FAQ section as well. Reading up on this will allow you to understand why you have to verify your identity before you can use a particular service.