What is Identity Proofing (IP)?

What is Identity Proofing (IP)?#

Identity Proofing (IP) is the process of verifying that an individual's claimed identity matches their actual, real-world identity. This verification process typically involves checking official documents, using biometric verification, or cross-referencing authoritative data sources.

Identity proofing plays a crucial role in establishing trust, ensuring security, and complying with regulatory requirements. For example, governments, financial institutions, healthcare providers, and digital services use identity proofing to prevent fraud, secure sensitive data, and meet compliance standards.

The Australian Government’s Trusted Digital Identity Framework (TDIF) categorizes Identity Proofing into escalating IP levels based on document verification complexity and the degree of certainty required:

IP1 (Basic): Self-asserted identity without verification.
IP1+ (Basic): Verification of one official identity document.
IP2 (Standard): Verification of two or more documents ("100-point check").
IP2+ (Standard): Biometric verification linked to identity documents.
IP3 (Strong): High-confidence biometric matching against authoritative documents.
IP4 (Very Strong): Highest confidence, multiple documents, biometric checks, and in-person interviews.

Key Takeaways:

Identity Proofing (IP) verifies an individual's real-world identity against their claimed digital identity.
IP Levels (IP1 to IP4) escalate from minimal checks (basic verification) to highly secure, biometric and in-person verifications.
Strong IP methods are essential for regulatory compliance, fraud prevention, and building user trust.

Understanding Identity Proofing (IP) Levels (TDIF Framework)#

The Australian Government’s Trusted Digital Identity Framework (TDIF) outlines six distinct IP levels, each catering to varying degrees of risk and trust:

IP Level	Description	Typical Use Cases
IP1 (Basic)	Supports self-asserted or pseudonymous identity with no verification.	Negligible-risk services, e.g., paying a parking fine
IP1+ (Basic)	Requires verification of one identity document.	Low-risk services, e.g., loyalty card program
IP2 (Standard)	Requires verification of two or more identity documents, similar to a traditional "100-point check."	Moderate-risk services, e.g., setting up utility accounts
IP2+ (Standard)	Builds on IP2 by requiring the "Binding Objective," involving biometric linkage between the individual and their claimed identity.	Moderate-to-high risk transactions
IP3 (Strong)	High-confidence level requiring biometric binding; for example, myGovID "Strong" identity requires biometric matching ("selfie") against a passport photo.	High-risk government services, e.g., applying for a tax file number
IP4 (Very Strong)	The highest level, requiring four or more documents, meeting all IP3 requirements, and mandating an in-person interview.	Very high-risk services, e.g., passport issuance

Why is Identity Proofing Important?#

Identity Proofing ensures secure interactions online, reduces identity theft, and complies with stringent regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML). The TDIF IP levels offer flexibility, allowing services to choose appropriate verification methods according to the risk involved.

Common Techniques in Identity Proofing:#

Document Verification: Digital authentication of official documents (e.g., passports, driver’s licenses).
Biometric Verification: Matching physical characteristics like facial recognition or fingerprints.
Database Cross-referencing: Confirming user details with authoritative databases.

Implementing proper Identity Proofing measures significantly enhances digital security, user trust, and regulatory compliance.

Identity Proofing (IP) FAQs#

What does IP stand for in identity verification?#

IP stands for Identity Proofing, a process of confirming an individual's claimed identity against authoritative documents or biometric data.

What is the TDIF framework for Identity Proofing?#

The Trusted Digital Identity Framework (TDIF) defines escalating IP levels (IP1 to IP4), detailing identity verification standards for different risk scenarios in Australian government digital services.

Why do some IP levels require biometric verification?#

Biometric verification provides a higher confidence level by ensuring a physical match between the individual and their official identity documents, significantly reducing fraud risk.

When is IP4 (Very Strong) identity proofing required?#

IP4 is used for very high-risk scenarios, such as issuing passports, and requires extensive document verification, biometric matching, and an in-person interview.

What is Identity Proofing (IP)?