Identity Verification API: How Does It Ensure Data Privacy?

Identity verification APIs (IV APIs) are software tools usable in industries that require abidance by anti-money laundering (AML) and know-your-customer (KYC) codes. These tools are what you need to verify customer identities.



You can quickly compare user data such as passports and driver's licenses against government databases. Additionally, you can use IV APIs to discover other sensitive personal data, including age and address numbers. Setting up robust identification identity API systems helps your company privatize customers' data and prevent fraud.


So, what are real-life applications of identity verification APIs, and how do they privatize user data? 

In financial settings, owners verify your identification number and driver's license to authenticate the creation of a bank account or transacting. 

In healthcare centers, identity verification API helps verify patient identities to ensure data privacy and prevent identity theft. E-commerce operators use IV APIs to validate their consumers' identities before processing payments to reduce chargebacks and fraud. 


Many other industries rely on this technology to verify the identity of users, prevent fraud, and secure consumer data.


This article lists five ways Identity Verification ensures data privacy. 

Identity verification APIs use robust encryption algorithms to ensure all data stored in your reserves or transmitted remains confidential. Transport layer security (TLS), hardware security modules (HSMs), and AES-256 encryption can enhance your company's data privacy, including customer information. Use IV APIs to limit who can access data shared between your company and customers. Even when hackers attempt to decrypt or read your company or consumer data, they will not succeed. 



1. Offers Robust Data Encryption

Identity verification APIs apply multiple privacy-enhancing technologies to optimize data privacy. Zero-knowledge proofs (ZKPs) let users confirm their identity without disclosing confidential data such as name and date of birth. Multi-party computation (MPC) enables companies to verify user identities against multiple databases while privatizing sensitive data.

 

Your company can combine data encryption with top-notch identity verification technologies to maximize data privacy and security.


2. Supports Efficient Data Minimization

Identity verification APIs only gather data useful for distinct applications. The systems use top-notch identity identifiers to tell who a person is and whether their documented data matches the one entered in government databases. It minimizes the data needing storage and the required efforts to keep it safe from hackers. 


IV APIs have another crucial role in anonymizing data by removing all personally identifiable information (PII). Therefore, it becomes tricky to tell humanly detectable data of a user. Similarly, identity verification APIs use differential privacy to supplement data security, intentionally to optimize privacy, limit access, and preserve the statistical utility of such data.


3. Offers Detailed Data Audit Reports

Identity verification APIs store all audit records of data access instances and related activities. They give accurate catalogs of every data interaction, detailing the time, date, and intent of access. Access to such input enables businesses to discover illegal data accesses and thwart potential infringements quickly. 


Additionally, audit reports are essential for your company to encourage accountability from every member entrusted with user data. That reduces misuse and prevents information from landing in the wrong hands. Data protection regulations require compliance with proper data audits, meaning implementing identity verification APIs is crucial for compliance with data privacy and security regulations.


4. Implements Access Control Measures

Do you always want to know the technology behind the prompts you get when you attempt to access various platforms? Identity verification APIs are the technologies used to lodge the login prompts you get when you access Facebook, Google, and other resources. These prompts ensure only people with login details can access the said documents. 


Furthermore, you can use verification APIs to implement RBAC strategies for effective data access control. With this technology, you can assign different members of your team roles with dedicated permissions. In this case, you decide who among your team members will verify user identities and who will have access to the identity verification results. That lowers cases of data misuse and forbids access to prohibited data.


5. Implementation of Data Retention Policies

One of the primary roles of identity verification APIs is to implement data retention policies. Setting up and deploying data retention policies lowers cases of breaches while optimizing the privacy of stored data. These data privacy and security guidelines ensure automatic user data selection after it has stayed in the silos for long. The power of doing so is the reduced risk of misuse.


Conclusion

Are you running a business generating large sets of data every day? Or do you handle sensitive consumer data and would not want it exposed to the wrong hands? Deploying identity verification APIs can go a long way in safeguarding user data while ensuring the privacy of every dataset generated in your business. 


Proper implementation of IV APIs regarding data privacy and security regulations is mandatory. That is to ensure your company remains compliant while keeping all user data confidential and free from hackers.


Author Bio: Jeffery Thompson is a passionate writer & guest blogger. Writing helps him to improve his knowledge, skills & understanding of the specific industry. He loves writing & sharing his knowledge mostly in the health industry. He believes health is the real wealth & wants to spread his belief across the world.



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