Database Verification

The term “government database verification” is often used in the same context as database verification since it’s the process of verifying customer identities using government databases. For example, driving license, passport records, or other official records of voter ID databases. 

SSN, or Social Security Number verification, is a popular database verification method in the US, where an automated solution is used to compare the nine-digit number (1) and the user’s full name (2) to other data, such as the user’s date of birth (1) or home address (2), confirming whether it’s a match or not. This method is also known as the 2+2 verification since two pieces of information are checked. 

Database verification is often paired with other ID verification measures, depending on the company’s AML risk assessment strategy. For example, sectors like e-commerce, iGaming, car-sharing, or real estate need to check the user’s name, date of birth, and address, which are all details that can be assessed through a single database check. For financial service providers, a user’s SSN should be verified, so often, such companies request the last four digits of the SSN along with the user’s full name to comply with KYC rules.

There are two key reasons. Firstly, database verification is required for high-risk, regulated industries that need to comply with global Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations in order to verify customer data against reliable sources and ensure that the users are legitimate taxpayers. Secondly, it works as a robust fraud prevention measure, helping organizations identify fraudulent user registrations while reducing risks like identity fraud or account takeovers.

Yes, it’s considered to be a more stringent security measure than a standard document check, where fraudsters use counterfeit documents and, sometimes, can bypass verification systems, especially those that are less advanced and can’t detect renderings during the process. To minimize fraud, companies use a multi-layer approach to KYC verification. For example, you can use a simple document and a selfie check and then use database verification on top to confirm the user’s identity by cross-matching their info with official records.