Identity authentication is an essential part of many security frameworks, both on and offline.

What is Identity Authentication?

Identity authentication is the process of verifying that an individual is the authorized user before they can access a network or system, complete a transaction, or initiate a high-risk action. The goal of identity authentication is to safeguard accounts, resources, and sensitive information from unauthorized access. 

When completing identity authentication, a person must present one or more credentials, such as a password, a physical token, or a biometric trait, to validate their identity.

The application of identity authentication spans across industries, including in both personal and workplace settings. In the physical world, this might look like someone entering their PIN into the keypad when making a debit card transaction. Online, this might involve entering the correct username and password before you’re granted access to your account.

Identity Authentication vs. Verification

Identity authentication and identity verification are commonly mistaken for one another. However, there are some important distinctions between the two, even if the differences are a bit nuanced.

Identity verification is the process of proving an individual’s identity. It’s how a person can establish their identity with a provider or system, and it is usually completed upon the initial account opening.

On the other hand, identity authentication is how someone can prove that they’re the rightful account holder after your identity has been established with the provider.

For instance, to open a new bank account, a person will likely need to bring multiple forms of identity to prove they are who they claim to be. This is identity verification. So, an individual might present a Social Security card and a driver’s license to show that they’re not using a stolen or fake identity to open the account.

Going forward, that person might only need a driver’s license, a PIN, or a password to authenticate their identity and gain access to their account, which is identity authentication. 

Methods of Identity Authentication

There are various methods of identity authentication, all of which depend on one or more of the following requirements:

• Something the person knows: A knowledge-based credential, such as a PIN or password
• Something the person has: A physical token, key, or badge in the person’s possession
• Something the person is: A biometric trait or characteristic that the person inherently is, such as a fingerprint, facial features, iris pattern, etc.

With single-factor authentication, individuals are only required to present one type of credential–like a password. However, according to a recent survey, 30% of respondents experienced a security breach due to a weak password.

Thus, multi-factor authentication (MFA) is becoming more favorable given the added layer of security it provides. With MFA, users must present credentials from at least two of the above categories to authenticate their identities. This way, if bad actors are able to get their hands on just one compromised credential, like a password exposed during a data breach, they still won’t be granted access.

How Does Identity Authentication Work?

The steps to identity authentication can look different depending on the specific application or system. However, this is the general flow of what this process looks like:

• An individual enters the identifier for a given account, such as a name, username, or email address
• The individual provides the appropriate authentication factor as prompted, either a knowledge factor, a possession factor, or an inherence factor, or a combination of the three.
• The system verifies that the credentials provided by the individual match the information stored on file for the given account.
• If there’s a successful match, the user is granted access with the appropriate permissions. If there is not a match, their access request will be denied.

The Benefits of Identity Authentication

Effective identity authentication provides several important benefits, including the following:

1.    Enhanced Security

The primary benefit of identity authentication is that it enhances account security, helping to prevent unauthorized access and fraud. It helps ensure that only authorized users can access sensitive information or make transactions, helping to avoid the misuse of a person’s identity.

2.    Increased Trust

Organizations can strengthen customer trust and loyalty by using strong identity authentication mechanisms to safeguard user accounts. This way, customers will feel that the provider is taking the appropriate measures to prevent fraud and keep fraudsters from accessing their sensitive data.

Breaches can be detrimental to a company’s reputation. Thus, strengthening security with effective identity authentication is a key way to improve a company’s image and enhance their appeal with potential customers. 

3.    Regulatory Compliance

Identity authentication can also help companies meet relevant data privacy requirements. Many industries require organizations to safeguard user information from unauthorized access, such as HIPAA.

So, implementing identity authentication isn’t just a way to help customers feel more confident about their data security. It also helps ensure regulatory compliance and avoid costly fines or legal penalties.

Identity Authentication Use Cases

Identity authentication can be used across various industries to safeguard account security and keep sensitive resources and information secure. Here are some of the most common use cases of identity authentication:

• Financial Services: Identity authentication is often required before users are able to view account balances, transfer money, or make an ATM withdrawal to prevent fraud.  
• E-commerce: Onliner retailers may authenticate customer identities before they’re able to make transactions using stored payment methods.
• Education: Schools can require successful authentication before students are allowed to complete online exams to prevent cheating. Students, parents, teachers, and administrators may also need to complete authentication before accessing student records online to ensure they have the appropriate permissions.
• Travel: Airports can use identity authentication methods to verify that an individual is the correct passenger before they’re allowed to travel.
• Workplace: Companies can use authentication to control access to physical premises and online systems so only authorized personnel can access sensitive information.