Authentication

Identification, Authentication, and Authorization in the Context of Identity Verification and Cybersecurity

In today’s digital world, cybersecurity and data protection are essential for both businesses and individuals. This is especially true in sensitive sectors such as banking, e-commerce, and public administration, where it must be clearly defined who is allowed to access which systems, data, and services. Terms like identification, authentication, and authorization often come up – they represent the core pillars of access control in digital systems. However, without reliable identity verification procedures, these systems remain vulnerable to various fraud scenarios.

But what exactly do identification, authentication, and authorization mean? How do they differ? And why is identity verification much more than just a bureaucratic step when opening an account? That’s what this article is all about.

Definition: Identification, Authentication, and Authorization

These three terms sound similar but refer to different steps in the use of digital systems and in identity verification.

1. Identification
   Identification is focused on the person attempting to log into a system. The user claims the identity by entering, for example, a username and the corresponding password. Identification can also take other forms, such as swiping a magnetic card or using biometric features.
2. Authentication
   Authentication is when the system checks the information provided by the user. This involves comparing the entered credentials against the system’s stored data. Authentication can be done by using passwords, two-factor authentication (2FA), or biometric methods. The user is authenticated based on this verification.
3. Authorization
   Once authentication is successful, the authorization process determines the user’s access rights. This step defines what the logged-in user is allowed to do within the system – such as viewing or editing sensitive data.

Simply put:

• Identification = I claim who I am.
• Authentication = I prove who I am.
• Authorization = I get permission to do something.

Identity Verification: More Than Just Authentication

Identity verification is often equated with authentication, but in fact, it goes one crucial step further. Today, it is mandatory in many areas subject to legal and regulatory requirements. For example, banks, financial institutions, telecom providers, and real estate agents must comply with Know Your Customer (KYC) regulations based on Anti-Money Laundering (AML) laws and the General Data Protection Regulation (GDPR). They must ensure that the person behind a digital identity exists and is legally capable.

As part of the onboarding process, a bank might verify the identity of a new customer by checking official documents (e.g., ID card, passport, and sometimes proof of residence). These documents are then verified using a tool such as our VideoID – a live video identification process compliant with AML regulations, developed by WebID. Trained agents not only confirm the accuracy of the submitted data but also determine whether the person is real and not a case of identity theft.

This kind of identity verification can thus be seen as a compliance-driven confirmation of the real person behind a digital identity.

Warum ist die Identitätsprüfung so wichtig?

Robust identity verification is now indispensable across many industries and can help protect both organizations and individuals:

• Protection Against Identity Theft and Fraud
  Reliable identity verification significantly reduces the ability of cybercriminals to open accounts or gain unauthorized access using stolen data.
• Meeting Regulatory Requirements
  Many sectors are legally required to verify the identities of their customers. Secure identification methods help businesses meet legal requirements, such as those mandated by the AML Act and GDPR.
• Foundation for Secure Identification and Authentication
  Strong identity verification is the foundation for all subsequent steps in the security process. If a person’s identity is unclear, even the strongest password or rights management system is ineffective.
• Enabling Trusted Digital Processes
  Digital onboarding, contract signing, or account creation can be made secure, user-friendly, and scalable – globally – through digital identity verification.

Conclusion

Identification, authentication, and authorization are fundamental pillars of access control in digital systems. Identity verification is more than just a regulatory necessity – it is essential for building trust, enabling compliance, and preventing cyber threats. Ultimately, verifying a person’s identity clearly and securely is the first step toward digital sovereignty in today’s digital world.