5 Common Myths About Identity Verification

It’s a widely held belief that identity verification is included as part of routine background checks. In fact, in a recent webinar poll of HR professionals, approximately two-thirds of respondents mistakenly believed that a standard background check includes verifying identity. Why is this such a common misconception? One of the main reasons may be that many Social Security number (SSN) Trace and Form I-9/E-Verify tools and services are often mentioned interchangeably with a standard background check. Let us debunk five common misconceptions about how and when identity is verified, while also detailing the differences between these commonly confused services.

Myth #1. SSN Traces Are an Identity Verification Tool

Despite this common myth, an SSN Trace does not actually verify identity. Instead, an SSN Trace is a locator tool for discovering an individual’s address history and alias names. It traces public records connected to a Social Security number and the possible names the SSN could be associated with.
For example, while a candidate may report living at just one address over the past five years, an SSN Trace using the provided SSN could disclose that they temporarily resided with a relative in a different city for a short time, revealing yet another location where potential criminal records may be found.

By itself, an SSN Trace is insufficient to reveal if a given SSN actually belongs to the candidate claiming it; the trace cannot confirm or verify that the candidate is really the person they claim to be.

Myth #2. A CBSV Proves That a Candidate’s SSN Is Really Theirs

Unfortunately, this is untrue as a Consent-Based Social Security Number Verification (CBSV) cannot confirm whether or not a candidate actually owns their provided SSN. A CBSV does check the name and SSN provided by the candidate against Social Security Administration (SSA) records, and this confirms that the candidate is not using a deceased person’s SSN via the SSA’s Death Master File, and that the SSN and the date of birth belong to the name submitted.

However, a CBSV does NOT confirm that the SSN belongs to the candidate — they might instead be fraudulently using the SSN of another living person. Additionally, a CBSV requires consent to verify and must also be processed manually, making it a more expensive and time-consuming search with increased candidate friction.

Myth #3. I-9 and E-Verify Checks Are Enough to Verify Identity

At the most basic level, identity verification assesses whether the candidate is truthfully representing themselves. Unfortunately, for many organizations, I-9 and E-Verify checks are the only form of identity verification that takes place. Since an I-9 Form is not typically filled out until much later in the onboarding process, any information gained arrives too late to be valuable to HR teams.
Making matters worse, during the I-9 process, it is unlikely that the viewed identity document is crosschecked against the identity information from the background check. We have also heard about several instances where the person going through the interview process is not the same person, who shows up on the first day of the job.

However, this is not discovered until much later. Among organizations that experienced identity fraud, 23% revealed that the person who showed up for the job was not the person whose background was checked. Further, the person checking the ID and completing the I-9 Form is typically an HR professional, who likely is not trained to check an identity document for authenticity.

Myth #4. Identity Verification Is Unnecessary

Identity verification, prior to employment screening, is both common and required in many developed countries, and for good reason. Employers and organizations can better help to protect their workers, customers, and clients by discovering any meaningful criminal history on the part of their candidates.

To do this, HR teams must first gain accurate upfront information about exactly who their candidates are. A standard background check in the U.S. is dependent on candidates providing accurate identifying information at the beginning of the process, such as their Social Security number, name, and date of birth. Errors, whether they are accidental or intentional, can potentially go undetected and lead to incorrect background check results. 

Over 60% of HR professionals expect the number of remote employees to increase in some form over the next two years. While this presents new opportunities for finding the best talent for your organization, hiring remotely comes with additional challenges in verifying a candidate’s identity.

That is why, to successfully verify their identity, it is beneficial to give candidates multiple methods to verify their identity. Some examples of how to verify identity include:

1. Telecom and device verification
Similar to multi-factor authentication, in which a text message containing a unique code is sent to a user’s cell phone, this process uses the SIM found in a candidate’s cell phone to verify the cell phone holder’s identity, location, account tenure, and fraud history.

2. Document and facial verification
A candidate takes a photo of their government-issued ID, along with a selfie, and submits both for verification. The document’s authenticity is checked and then compared to the selfie to determine a match.

3. Live video chat
For individuals, who may require additional assistance or who are unable to verify using other methods, live video chat is a great tool as a failover. During this process, individuals would complete identity proofing with a trained, trusted referee via video conferencing.

4. Portable identity
What if candidates only needed to complete identity verification once, and then keep that verification on file for future use? Sterling’s partner ID.me allows individuals to verify their identity just once and then securely store it in a digital wallet for reuse with other organizations including governments and businesses.

While an SSN Trace is an important locator tool, and CBSV can show that a specific name and an SSN are associated, identity verification is a more comprehensive method to vet a candidate more thoroughly.

Myth #5. Identity Verification Is the Same Thing as a Background Check

Since standard U.S. background checks do not verify identity, many U.S companies are now adopting modern digital solutions to quickly verify identity and capture biographic data from government-issued documents. According to a recent survey,  66% of North American companies plan to use identity verification in screening.

Conclusion

SSN Trace and CBSV are all valuable tools when used for their intended purposes in the background screening process, but they do not verify identity. Incorporating an identity verification step early in your hiring process before Form I-9 — such as Sterling Identity Verification — allows you to conduct a more accurate search with the correct identity information, and protect against rising identity fraud.
 

Author Bio

Taylor Liggett is the General Manager of Sterling Identity, where he leads Sterling’s global identity services business. With more than a decade of domestic and international experience in background screening, identity, and biometrics, he brings a unique perspective to the emerging and rapidly-evolving identity space. Prior to joining Sterling, Taylor led the global account management operation for ADP’s background screening and I-9 services division. Taylor also serves as a member of the Forbes Business Council. Visit https://sterlingidentity.com/ Connect Taylor Liggett