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A quick guide to understanding identity validation

Nufi is an identity validation platform that verifies whether the information provided by individuals or companies is truthful.


In this article, we talk about identity validation and how this process prevents you from losing money to fraud, a crime that has increased sixfold in Mexico in the last decade.

Validation of identity background check judicial records
How identity validation works

What is identity validation?


Imagine you have finished your career in finance, you join an important Fintech, and your boss asks to evaluate the people who apply for loans. You do all the calculations, check his income and credit history, and decide, for example, that Robert is an excellent candidate. But is Robert really who he says he is, and are you sure he's not a fraud?


Identity validation is a process to verify whether a person or company is who they say they are and whether their information is truthful.

The aim is to prevent fraud, especially in commercial activities that are highly affected by this crime and involve reliance on others, such as granting credit or hiring personnel.

For identity validation, it is essential to review the data stored in public and private information records so that it is possible to contrast and validate the identity of the person or company. The sources of information can be official records, electoral, fiscal, social security, social networks, search engines, police, judicial and international authorities.


Why is identity validation important?


Making the right decisions is the basis of a fruitful and long-term relationship with a customer. When you can't do it in time, you may lose him, and your competitors may be able to provide a more agile service.


However, you cannot make some decisions lightly, as they directly impact your business. For example, you cannot grant a loan or hire someone without first knowing what you need to know about the person requesting it. Proof of this is the $250 million year companies in Mexico lose due to identity fraud.


A dilemma arises: not wanting to lose a good prospect because of the delay in making a decision but also the need to validate that the person meets the requirements to provide our confidence, which means a return on investment.


What should we do? Of course, validate the identity. However, to be competitive, it is necessary to do this in the shortest possible time, with the highest reliability, to make secure real-time decisions. For these reasons, Nufi provides a solution.


What information does Nufi's identity validation platform provide?


Nufi validates identity in more than 40 information records in an automated way. You only need the person's full name, date, place of birth, and gender to do so. This way, in less than five minutes, you receive a complete report with the information validated and classified into five categories.


1. Identity validation:

Our platform consults the information housed in the official information registries in Mexico. From there, it verifies the data associated with the Unique Population Registry Code (CURP), the Federal Taxpayers Registry (RFC), the Public Registry of Commerce (Siger), the National Registry of Professions, and the Unique Registry of Movable Guarantees.


Thus, it is possible to corroborate specific data such as full name, date of birth, nationality, sex, and registration certificate.


Our system also checks if a person has a valid RFC and therefore carries out legal activities if they participate or are a shareholder in companies, how much participation they have, who their partners are, if they have a professional license and if they have personal property as collateral for the previous financing.


In addition, we validate the Tax Administration Service's (SAT) blocklist to find out if there are any pending tax proceedings. We also consult the Interpol platform in search of circulars that report crimes at the international level.


Finally, the system reviews information from The Office of Foreign Assets Control (OFAC) to identify if the person has sanctions or is on U.S. Treasury lists.


2. ID document validation:

You can also attach a photo of the identification document. From there, we extract all the document's data through Optical Character Recognition (OCR) and verify if it is valid before the National Electoral Institute (INE) and if it is authorized to vote.


On the other hand, we provide access to the geolocation of the address registered by the person in integration with Google Maps and Street View.


From these processes, it is possible to corroborate all identification data, including the voter's password, the year of issuance of the ID, its validity, and the registered address data.


3. Employment history:

In this category, we include validating the individual's work history, salary progression, and estimated ability to pay based on the monthly contribution base salary.


Among the validated data are the Social Security Number (NSS), the total number of weeks contributed to the National Institute of Social Security (IMSS), the companies in which they have worked, the dates of registration and termination, the base salary and the salary progression concerning the previous job.


Likewise, we attach the total number of days worked and not worked, the percentage of labor stability based on this data, and the estimated payment capacity based on the monthly contribution base salary, in case the person is applying for a loan in your entity.


4. Judicial record:

The solution created by Nufi also verifies a person's participation as a plaintiff or defendant in legal proceedings at the national level or broken down by states.


There you can check which court the process is in, its status, the file number, the date, and who are the plaintiffs and defendants.


5. Digital identity:

With the digital identity validation, our system performs a web search to obtain a person's possible social networks and possible contact details: phone numbers, addresses, email addresses, jobs, studies, languages, as well as the main results in Google.


What are the benefits of identity validation?


The following is a summary of the main benefits of performing identity validation:

  1. Validate if the identity of a person or company is accurate and truthful.

  2. Verify their judicial, labor, and tax records.

  3. Build business relationships based on mutual knowledge and trust.

  4. Make decisions based on as much validated information as possible.

  5. Make agile and secure decisions that positively impact the return on your investment.

At Nufi, we have a team ready to answer any questions regarding identity validation so that you can learn more about our scope and how our solution can help you make more agile and secure decisions, minimizing the risks of your operation.


Click here and schedule a meeting to learn more.

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