Video identity verification has become a trusted method for remote identity confirmation, especially in industries like banking, fintech, telecom, and government services. But in today’s landscape of deepfakes and AI-generated fraud, is it still as reliable as it used to be?
In 2024, nearly half (48%) of financial services firms reported encountering deepfake attempts during video identification processes. That’s a wake-up call: video ID verification may not be the foolproof solution it once seemed.
This guide explains how video identification works, when and why it fails, and how companies can enhance its security, scalability, and user experience.
What Is Video Identification?
Video identification is a remote identity verification process where a user is authenticated through a live or recorded video session. Originally introduced to help financial institutions meet KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements, it’s now widely used across industries:
- Banking & Fintech – For onboarding, account access, and transaction verification
- Telecommunications – To verify users during SIM card registration
- Healthcare – For secure telemedicine access and patient verification
- Government services – For remote notarization and digital ID issuance
- Gig economy & eCommerce – To prevent fraud and build trust between users
How Video Identification Works: Step-by-Step
1. ID Submission
Users present a government-issued photo ID (e.g., passport, driver’s license). This step may be handled before or during the video session. Many companies use mobile-based document scanning tools like Regula Document Reader SDK to extract personal data automatically, reducing manual input errors.
Verification standards vary. For instance, Revolut specifies acceptable document types per country, rejecting IDs that are expired, damaged, handwritten, or illegible.
2. Live Video Session
This is the core of video identification. The session may be:
- Live and agent-assisted – A human operator verifies the user’s identity in real time
- Hybrid – The user records the session, which is reviewed later
- Fully automated – AI guides the user and processes the session
Agents typically request verbal consent, ask verification questions, and validate documents during the call. In some cases, additional steps like OTP verification or location tracking are required.
Example: ICICI Bank (India) uses live video calls to confirm customer identity and documents when opening accounts or applying for loans. Device location detection is sometimes included for added security.
3. Liveness Detection
To prevent spoofing, deepfakes, or video injection attacks, liveness detection ensures the user is real and physically present.
- Active liveness detection: Users perform tasks like smiling or turning their head
- Passive liveness detection: The system detects signs of life automatically using AI
Facial comparison is done between the live selfie and the photo from the submitted ID or a trusted database.
4. Data Validation
The session ends with validation—either by a human operator or an automated system. Based on the outcome, the session is marked as approved, declined, or flagged for additional checks (e.g., watchlist screening or enhanced due diligence).
When Video Identification Fails
Video identification can fail due to technical issues, non-compliance, or fraud. Common failure scenarios include:
- Unacceptable ID (e.g., expired, scanned, watermarked, or cropped images)
- Data mismatch between submitted forms and ID or interview answers
- Session interruptions (poor internet, system crashes)
- Refusal to follow operator instructions
- Assistance from unauthorized third parties
- Suspicious behavior (e.g., links to money laundering or identity theft)
In any of these cases, onboarding or transaction approval may be denied.
Partner with Regula for Secure, Scalable Identity Verification
Video identification remains a vital solution for remote identity verification, but to maximize its impact, businesses must navigate its complexities with care. From regulatory compliance to fraud prevention and user experience, success starts with clearly defined goals and the right technology.
At Regula, we deliver more than just trusted SDKs for document and biometric verification—we provide the expertise and support to help you design and implement a verification strategy that meets your unique needs.
