FAQ: Electronic Identification

Key facts about identification in the digital sphere

As digital interactions have become essential across sectors – from banking and healthcare to government services and e-commerce – secure, reliable, and accessible digital identity systems are crucial.

What is electronic identification?

Electronic Identification (eID) refers to digital methods that enable the identification of individuals in the online or digital space by linking their real-world identity to a digital equivalent. This technology facilitates secure online interactions by replacing traditional physical identification methods such as ID cards, passports, or physical signatures. As more sectors, including banking, healthcare, government services, and e-commerce, transition to digital platforms, eID has become a critical foundation for ensuring trust and reliability in online interactions. It helps verify identities, reduces the risk of fraud, and enhances privacy while supporting a wide range of digital services.

Why do we need it?

The increasing reliance on digital interactions across various industries drives the need for electronic identification. It plays a critical role in building trust by ensuring that individuals and organizations are genuinely who they claim to be. This minimizes fraud and protects personal information. Additionally, eID streamlines verification processes, making them faster and more accessible for users, and enables seamless global interactions. It also supports interoperability in the public and private sectors, reducing barriers previously hindering international transactions and services.

The importance of electronic identification and authentication in ensuring secure digital transactions

What are the challenges of implementing electronic identification?

Security remains paramount, as eID systems must be resilient against identity fraud, data breaches, and sophisticated cyberattacks. Ensuring privacy compliance is equally critical, with stringent data protection laws such as the GDPR requiring careful handling of personal information, minimizing data use, and granting users control over their data. Interoperability presents another hurdle, as systems need to be compatible across diverse platforms, countries, and jurisdictions while remaining cost-effective. Widespread adoption can also be difficult, as some users may be skeptical of new technologies or lack access to necessary infrastructure.

What regulatory issues need to be considered?

Regulations such as the EU’s eIDAS and GDPR shape the legislative framework for electronic identification, setting strict requirements for data protection and system compliance. Cross-border recognition is critical to ensure that digital identities are mutually accepted across regions to facilitate international transactions and interactions. Harmonized frameworks like the European Digital Identity Wallet under the revised eIDAS regulation aim to provide a unified standard for identification and authentication, essential for fostering trust and simplifying regulatory compliance.

What are the different methods available today?

Qualified Electronic Signatures: This method confirms a user's identity via a signature linked to their verified bank account. It complies with the revised eIDAS standards and offers robust privacy and security. It is used for anti-money laundering (AML) compliance.
Face-to-Face Identification: In-person document verification at designated locations (e.g., post offices). Secure and compliant but limited by business hours and geographic accessibility.
Video Identification: Online equivalent of in-person verification via encrypted video calls with agents. Convenient for remote users but dependent on staffing and business hours.
Auto Identification: This is an unattended identification process that uses AI and computer or smartphone cameras. Users take a selfie video and scan their IDs. This scalable method runs with an optional manual background check.
NFC Identification: This technology enhances auto identification by reading NFC chips in eIDs or passports, ensuring high data accuracy and security. However, data protection regulations restrict it in some contexts.
Electronic ID Cards: NFC-enabled ID cards (such as Germany's eID or Spain's DNIe) support secure digital interactions and legally recognized electronic signatures. Adoption varies across the EU, with initiatives aiming to boost usage.
Identification by IDPs (Identity Providers): For AML purposes, it relies on verified data from third-party IDPs, such as "Login via Google" or bank identification. Trusted sources are essential for reliability.

How can Swisscom Trust Services support you?

We work with various partners to integrate multiple identification methods into business processes. We believe that every user should be able to choose the method that suits them best from the wide range of options available – whether in-person, video, or auto-identification. Identification is a significant drop-off point in the customer journey, and the more convenient options companies offer, the fewer leads will drop off.

Do you have any questions? Contact us!

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FAQ: Electronic Identification

Key facts about identification in the digital sphere

What is electronic identification?

Why do we need it?

What are the challenges of implementing electronic identification?

What regulatory issues need to be considered?

What are the different methods available today?

How can Swisscom Trust Services support you?

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