Digital ID Verification: How It Works

Key takeaways:

• The Digital Identity verification and authentication landscape continues to evolve in the UK and throughout the world

• Learn the key components and different levels of online identity verification with the step-by-step process integrated into Docusign

• More and more sectors use online identity verification to streamline their processes from right to work verifications to signing of agreements and improving customer service

In today's digital landscape, companies face increasingly sophisticated identity fraud threats. A research report conducted by Docusign and Onfido  Opens in a new tabfound that seventy percent of organisations in the UK agree that identity fraud attempts are on the rise. Therefore, digital ID verification has evolved to meet this challenge, with reusable digital identities becoming the standard for secure transactions. This guide explores how modern verification systems work, the technologies powering them, and how organisations can implement robust verification processes to protect sensitive agreements whilst maintaining seamless customer experiences.

What is online identity (ID) verification and digital identity?

In today's increasingly digital world, verifying who's on the other side of the screen has become paramount for secure transactions. Online ID verification serves as the virtual equivalent of checking someone's physical identification, but with enhanced capabilities for remote interactions.

Digital ID definition

Digital identity differs fundamentally from physical identification in both form and function. While physical IDs (such as passports or driving licences) are tangible documents primarily used for in-person verification, digital IDs exist in electronic form and can be used seamlessly across both online and offline environments.

Digital identity encompasses the verified personal information that uniquely identifies an individual in the digital realm, allowing them to prove who they are remotely.

Digital identity systems typically validate a person using information extracted from government-issued documents or databases, and are often combined with additional verification layers.

Unlike physical IDs that require manual inspection, digital verification systems can instantly cross-check personal data against trusted databases while analysing document security features for authenticity. This process creates a more secure and efficient verification experience that complies with the UK Digital Identity & Attributes Trust Framework Opens in a new tab, the set of rules and standards defining what constitutes a trustworthy digital identity service in the United Kingdom.

Key components of a verification system

Modern identity verification systems, such as those offered with Docusign's Identify portfolio, employ multiple technologies working in concert to ensure robust identity verification:

Document analysis technology: advanced systems examine the security features, data consistency and authenticity markers within identity documents. These systems detect manipulations, forgeries and inconsistencies by analysing unique data patterns, holograms and other security elements embedded in government-issued IDs.

Biometric liveness detection: this technology confirms that a real person is present during verification by analysing facial movements, detecting unnatural patterns, and sometimes requiring guided actions (such as turning your head or blinking). AI-based algorithms distinguish between a live human and potential presentation attacks such as photos, pre-recorded videos or deepfakes.

Bank-Based verification: recipients can prove their identity by logging into their online bank account, leveraging the existing KYC checks already conducted by their bank to share bank-verified identity data.

Phone Authentication : recipients receive a one-time passcode via SMS or automated phone call and must enter the correct code before accessing the agreement

These verification components can be embedded into existing company systems for seamless onboarding and authentication, creating a frictionless yet highly secure verification process that protects both businesses and consumers from identity fraud while complying with stringent regulatory requirements.

How Docusign helps with UK online identity verification

In the UK, organisations across all sectors are striving to balance customer experience with stringent compliance requirements, including KYC (Know Your Customer), AML (Anti-Money Laundering) and CDD (Customer Due Diligence). Identity verification solutions from Docusign help bridge this gap with secure, seamless verification processes that meet regulatory standards.

Recent research shows that 80% of consumers prefer digital identity verification Opens in a new tab when choosing online brands. In the UK, organisations across all sectors are striving to balance customer experience with stringent compliance requirements, including KYC (Know Your Customer), AML (Anti-Money Laundering), and Right to Work digital identity checks. Docusign's identity verification solutions help bridge this gap with secure, seamless verification processes that meet regulatory standards.

When you customise an eSignature envelope or add a Docusign Identify feature to a Maestro workflow, recipients must complete a fully-integrated identity verification process before viewing or signing the agreement. Through our partnerships with leading identity providers (i.e. Onfido, OneID, etc.) the verification process is certified under the UK Digital Identity and Attributes Trust Framework, ensuring your verification method meets government standards for secure digital identity verification.

What’s more, in a research report by Docusign and Onfido  Opens in a new tab, an Entrust brand, we found the average organisation using an identity verification solution has saved over £6 million in total by preventing identity fraud. Furthermore, 74% of UK organisations that invested significantly more in identity verification than their industry peers, believe the steps they took to prevent identity fraud had a positive impact on their brand, with the same number planning to invest more in these technologies in the future.

Example step-by-step signer journey: from photo ID to eSignature

UK users verifying their identity with photo ID follow this streamlined process:

1. Receive notification: the signer receives an email with instructions to complete identity verification before accessing the document.

2. Upload government-issued photo ID: using their smartphone or computer, the signer takes a photo or uploads their UK passport, driving licence or other accepted ID document.

3. Document analysis: advanced AI technology analyses security features and data points to verify the ID's authenticity.

4. Cross-reference verification: the system cross-checks the name and information on the agreement with the ID document.

5. Access agreement: once verified, the signer gains immediate access to view and sign the document.

6. Audit trail: the verification method, time and date are recorded in a tamper-evident Certificate of Completion, supporting compliance requirements. Key recipient identity information is also securely captured and stored in our centralised ID Evidence platform, providing easy access for future audits.

Alternative verification methods including SMS authentication, bank-based login and biometric verification

For situations where photo ID verification isn't necessary, Docusign offers alternative verification methods:

SMS or call authentication: recipients receive a one-time passcode code via text message or automated phone call to verify their identity, providing a balance of security and convenience.

Bank-based login: before accessing the agreement, recipients will be required to log-in to their online bank account as a means of verifying their identity, reducing fraud risk while delivering low-friction, compliant identity checks.

Biometric verification: for additional security, biometric (liveness) checks can be added to the photo ID verification process. Recipients will be required to take a quick video selfie of themselves performing randomised gestures, ensuring they are physically present at the time of capture. Identity Wallet: repeat recipients can securely store and easily re-apply proof of their previously-verified identity, letting them quickly reuse it to authenticate future agreements using device biometrics, reducing repeated verification steps.

These verification methods can be configured to meet specific compliance requirements, including KYC and AML regulations. For organisations seeking to conduct Right to Work checks Opens in a new tab, through our partnership with Onfido, Docusign's verification processes align with the UK government's Digital Identity and Attributes Trust Framework, providing the statutory excuse employers need against illegal working penalties.

By embedding remote identity verification into the digital agreement process, Docusign helps UK companies provide a seamless, end-to-end experience that supports regulatory compliance while enhancing the customer journey.

Where you can use digital identity verification

Identity verification has become essential across numerous sectors, helping organisations meet regulatory requirements while protecting against fraud. From government-mandated processes such as Companies House identity verification Opens in a new tab to industry-specific compliance checks, digital identity verification solutions now serve a wide range of business needs across the UK and globally.

Having robust identity verification capabilities helps protect your organisation from increasingly sophisticated fraud attempts while streamlining customer experiences.

For businesses of all sizes, digitising the identification process reduces risk, supports compliance and strengthens legal validity, all while creating opportunities for business growth through improved customer confidence.

As regulations continue to evolve, implementing reliable verification processes puts both organisations and customers at ease, creating a foundation for secure digital transactions.

Combining identity Verification with electronic signatures for the ‘legal equivalent’ to a handwritten signature

Docusign Identify makes identity proofing and authentication a seamless part of eSignature , helping you protect your important agreements and your customer experience.

To deliver the highest levels of trust and security, you may require certain agreements to be signed using a signature-type that’s considered to have ‘ the equivalent legal effect of a handwritten signature  Opens in a new tab’, an important consideration for higher-value transactions. Available through Docusign ID Verification Premier, customers have access to our Qualified Electronic Signature (QES) offering , helping to comply with some of the highest levels of trust, security and compliance across EU and UK eIDAS regulatory frameworks.

Face-to-face equivalent verification

Every agreement signed with QES includes a robust identity verification component to verify recipient identity remotely in minutes. The system uses sophisticated liveness detection that analyses biometric data to distinguish between a real person and potential spoofing attempts such as photos or deepfakes. An automatic review by a certified human agent is also included with each QES, with each review only taking a matter of minutes*

The verification process is streamlined for cross-device compatibility:

• Users capture a video of their government-issued ID document

• Completes verification through guided prompts to verify liveness

• Synchronous agent review within minutes *

For users on desktop computers, a QR code handoff option allows them to complete the identity verification steps on their mobile device before returning to their browser session. The entire process is typically completed within five minutes*, with certified agents reviewing the verification package before approval.

UK regulation and digital ID landscape

The UK's approach to digital identity verification underwent significant transformation from 2025 to 2026, driven by new legislation and government initiatives aimed at combating economic crime and streamlining digital interactions.

Companies House identity verification rules

Under the Economic Crime and Corporate Transparency Act Opens in a new tab, identity verification for company directors and people with significant control (PSCs) Opens in a new tab became mandatory from 18 November 2025. This marked the beginning of a 12-month transition period requiring all relevant individuals to verify their identities by their specified due dates.

Companies House estimates 6-7 million people will need verification by mid-November 2026. Verification can be completed either directly through Companies House using GOV.UK One Login Opens in a new tab or through an Authorised Corporate Service Provider (ACSP). Non-compliance with these requirements will result in restrictions on appointing new directors and potential enforcement action.

Right to Work digital identity checks for employers

Digital Right to Work checks have transformed the UK employment verification process. Employers must conduct these checks on all prospective employees before employment begins, regardless of their origins.

The government's digital scheme permits employers to verify UK and Irish passport holders remotely using approved Digital Verification Services (DVS) that comply with the Trust Framework. These providers perform identity verification technology (IDVT) checks and supply employers with verification reports that establish a statutory excuse against penalties for illegal working.

Through our partnership with Onfido, Docusign has developed a pre-configured Right to Work Maestro Workflow that allows employers to incorporate identity verification directly within employment document workflows, creating a seamless onboarding experience.

Methods of digital ID verification compared

For highest-security applications, combining multiple verification methods creates the most robust identity assurance while maintaining reasonable completion times for users.

FAQ: Digital ID verification

What will digital ID be used for?

Digital ID will be used for a range of essential services in the UK, including proving right to work, opening bank accounts, accessing government services and verifying age online. As of 2026, it is mandatory for employment verification but voluntary for other uses. Digital ID provides secure identity verification for individuals who may lack traditional identification documents while protecting personal information through encryption and security measures.

How do you get a digital ID in the UK?

UK residents can obtain a digital ID through several certified providers within the Digital Identity and Attributes Trust Framework. The government is developing the GOV.UK Wallet, which will store your digital ID securely on your phone. Alternatively, private providers offer reusable digital ID solutions. Most require downloading an app, verifying your identity with government-issued documents and completing biometric verification for added security.

How long does digital ID verification take?

Modern digital ID verification typically takes under a minute to complete. Leading UK providers such as OneID Opens in a new tab can verify individuals in as little as 12 seconds using bank-verified information. Document-based verification methods may take slightly longer but still complete within minutes. The verification speed depends on the level of assurance required, standard checks are nearly instantaneous, while higher security. The identity verification process can usually be completed in minutes for the Companies House Opens in a new tab service.

Who can verify my identity?

Your identity can be verified by certified certified Digital Verification Services (DVS) operating under the UK Digital Identity and Attributes Trust Framework. These include financial institutions, government-approved verification companies and physical locations such as Post Office branches. For official purposes, employers, landlords and regulated businesses are authorised to verify identity using these certified providers when conducting right to work checks, tenant verification or KYC procedures. Docusign has integrated several leading and certified verification companies into its Identify portfolio

What is digital identity?

Digital identity is the electronic representation of your personal information that can be securely stored and shared online. It contains verified details about who you are, such as name, age, address and citizenship status.

Unlike physical documents, digital identity is reusable across multiple services, offering greater security through encryption, easier revocation if compromised and improved privacy by sharing only necessary information. This digital representation allows individuals to prove who they are remotely without presenting physical documents, streamlining verification processes for both consumers and businesses.

*Individual results may vary