Four ID Verification Hurdles Every Business Must Clear (And How to Do It)

Your ID verification process could be quietly costing you revenue. Every day, businesses lose customers, face regulatory penalties, and waste resources because of common verification obstacles that seem unavoidable. But what if the pain points other companies experience could become your competitive advantages?

Today's digital landscape demands both ironclad security and seamless user experience. The companies that master this balance don't just survive—they thrive. Let's explore the four critical hurdles that plague most ID verification systems and discover how addressing them can transform your business operations.

Hurdle 1: Missing the Fakes

The Problem: Sophisticated fake IDs are slipping through your verification system, exposing your business to fraud-related losses and regulatory penalties.

Gone are the days when fake IDs were obviously counterfeit novelty items. Today, fraudsters easily generate AAMVA barcodes online and create synthetic IDs using AI. These IDs are cheaply purchased online. Additionally, with over 250 unique driver's license formats across the US and Canada, expecting staff to recognize every one of them is unrealistic. Furthermore, these IDs can also easily deceive basic barcode scanners and template-based OCR systems.

The Real Cost: According to the Association of Certified Fraud Examiners (ACFE), organizations lose approximately 5% of their revenue to fraud annually. But the financial impact extends far beyond direct losses. When fake IDs slip through, businesses face:

• Regulatory fines and legal penalties
• Operational disruption from investigations
• Extensive remediation costs
• Damaged brand reputation and customer trust

The Opportunity: Advanced verification technology prevents losses and builds trust. When customers and partners see that your business prioritizes security, it strengthens relationships and can give you a competitive advantage. Strong fraud prevention boosts confidence, thereby increasing customer lifetime value.

• Only choose an ID verification solution that analyzes the Authoritative North America Barcode data hidden within state-ID barcodes.
• When validating IDs digitally, choose a solution with AI-powered document liveness, selfie validation, and other advanced capabilities to identify modern fake IDs.
• Never choose a solution that relies on a vendor’s proprietary hardware. Stay flexible by using a scanner vendor-neutral ID verification solution.

Hurdle 2: False Negatives Alienating Your Customers

The Problem: Your verification system flags legitimate customers as fraudulent, causing frustration, cart abandonment, and driving away real business. This is known as a false negative.

The Real Cost: A J.P. Morgan report showed that fraud accounted for 7% of total costs, while false negatives could account for up to 19% of those costs.

• Lost sales from declined legitimate transactions
• Increased the number of customer service employees for manual review
• Erosion of customer trust and loyalty
• Competitive disadvantage as customers seek alternatives

The Opportunity: Reducing false negatives transforms your verification process from a barrier into a competitive advantage. Gartner's advice still holds true: "Don’t treat your customers like criminals.”

• Legitimate customers who experience smooth, friction-free verification are likelier to complete transactions and return for future business.
• Reduced false negatives reduces manual investigations and frees up resources
• Accurate verification accelerates business transactions

Hurdle 3: The Three-Second Attention Span

The Problem: Lengthy verification processes cause customer abandonment at critical conversion points. In our instant gratification world, speed isn't just nice to have—it's always expected. Research shows that 40% of users won't wait longer than three seconds for a website to load. Yet typical ID verification processes take 5-30 seconds and only reach a decision 60% of the time. The remaining 40% require manual review, adding even more delay.

The Real Cost: Every second of delay compounds the abandonment problem:

• Increased drop-off rates during onboarding
• Lost revenue from incomplete transactions
• Higher customer acquisition costs
• Competitive disadvantage to faster alternatives

The Opportunity: Speed creates momentum. When verification happens in under a second with high accuracy, you eliminate the friction that causes abandonment. Fast and certain verification improves conversion rates and enhances the overall customer experience, creating positive first impressions that last.

• Use verification solutions that decision in under a second to maintain customer engagement.
• Decisioning should be fully automated with a 100% response rate for the best customer experience.
• Streamline ID verification as part of the onboarding workflow.

Hurdle 4: Evolving Business Requirements

The Problem: Your verification needs evolve, but legacy systems don’t easily adapt, leading to inefficiencies and gaps in coverage.

Modern businesses operate across multiple channels—mobile apps, web portals, point-of-sale systems, and remote verification scenarios. Customer journeys span devices and platforms, requiring consistent identity orchestration throughout. Static verification systems can't keep pace with changing regulatory requirements, new fraud techniques, or evolving business models.

The Real Cost: Inflexible verification systems create ongoing challenges

• Expensive equipment upgrades and replacements
• Integration headaches with new systems
• Compliance gaps as regulations evolve
• Inability to quickly capitalize on new business opportunities
• Increased technical debt and maintenance costs

The Opportunity: Dynamic verification systems become strategic assets. When your identity verification solution adapts to new requirements, integrates seamlessly with existing workflows, and scales with your business, it enables growth rather than constraining it. Flexible systems also future-proof your investment, ensuring you stay ahead of threats and opportunities.

• Use a SaaS vendor to ensure easy-to-adapt new capabilities.
• Stick with vendors that have long and proven track records of innovation.
• Think forward, always use an omnichannel vendor to be prepared to support mobile, point of sale, and online requirements in the future.
• Be prepared to move quickly when needed. Work with a vendor that offers both non-integration and API-based products that can work together.

Clear All Four Hurdles: Your Opportunity Ahead with Intellicheck

While these hurdles seem daunting, they're not insurmountable. The key is partnering with a verification solution designed to address these problems with legacy verification systems.

Catch fake IDs and prevent fraud before they begin with the most accurate barcode-scanning technology. Drawing on over two decades of experience and a proprietary database of actual jurisdiction formats, our system knows the hidden security features of the Authoritative North America Barcode found on driver's licenses and other state-issued IDs. Trusted by over 50 law enforcement agencies, our technology catches sophisticated fakes that others miss.

We've eradicated false negatives through industry-leading accuracy and 100% automatic decisioning in under a second. No more frustrated legitimate customers, no more costly manual reviews, just confident, accurate verification every time.

Speed is built into our DNA. Our fully automated system validates identity in under a second, eliminating the abandonment that plagues slower systems. Customers get instant verification and onboarding with no human-assisted review required.

Future-proof flexibility ensures your investment grows with your business. Our SaaS, hardware-independent products work via a mobile app, a web portal, or full integration into your existing environment, using your existing hardware. Standards-based REST API, mobile SDK, and Webhook options simplify integration, while our commitment to continuous innovation has kept our clients ahead of threats for over three decades.

Intellicheck verifies about half of all adult Americans annually across industries such as banking, lending, retail, and law enforcement, turning verification hurdles into competitive advantages.

Remove your Hurdles and Harness Opportunities

The four hurdles of ID verification are opportunities, not barriers. Businesses that recognize this and act will gain lasting competitive advantages, while others continue to rely on outdated systems. The speed, scale, and flexibility of Intellicheck help explain why it is a leader in the IDC MarketScape: Worldwide Identity Verification in Financial Services 2025 Vendor Assessment, which you can download for free. To learn how our Identity Service can improve your customer experience and strengthen your anti-fraud efforts contact Intellicheck today.

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