businessOfIdentity tall

August 2013

The Business of Identity

 

Revenue Potential in DLDV

Driver License Data Verification (DLDV) is a verification service that provides a general public benefit to assist government entities—as well as private sector organizations—in detecting identity theft and fraud. Idaho’s interest in participation [in the service’s pilot program] was to support this countermeasure to identity theft and fraud while potentially providing revenue to the state.

The biggest effort involved [with initiating the DLDV service] was setting up the memorandum of understanding (MoU). There was some development and testing involved also, but it was minimal compared to other software development projects. Programming for RIDE (Records and Information from DMVs for E-Verify) and DLDV was done simultaneously, which minimized development time.

While DLDV is a match/no-match program and personal information is not released, as with any program it could draw some criticism. There also appears to be some demand for increasing the number of verification fields, which could add complexity to development and maintenance.

I think DLDV will become a widely used verification tool across government organizations and private industry. Private entities will likely see the tool as a way to minimize business risk. Government entities will use it as a tool to be more assured of client identity and the genuineness of identity documents being presented.

Hopefully more states will participate in DLDV. As more states participate, more entities that need the verification service will begin using DLDV. As a result, states should realize increased revenue potential.

Taking Care to Protect Private Data

The Driver License Data Verification service is a great product when we’re talking about trying to curb identity theft and prevent fraud. Additionally, because of the capabilities of the service, I think the use of it could be endless. We’ve already identified various businesses—ones that frequently need to check IDs—that can benefit from this service, and I have a feeling there are way more uses out there that we haven’t even begun to identify.

I think that anything we can do to help businesses meet their requirements to identify individuals with whom they’re doing business helps everybody.

Nebraska is planning to market DLDV to all of the entities located in the state that use the driver’s license as a means to prove identity. It’s rare that a day doesn’t go by without a call from someone asking if we can help him or her verify that the data on the driver’s license document is legitimate. DLDV is a great service in that it will enable a business to do that for itself, so I can see us really making sure that we reach out to the businesses in Nebraska and letting them know that the DLDV service is available.

As an issuer of driver’s licenses, I think that we need to be doing our due diligence to protect the personal information that resides on our databases. The partners [vendors] have asked for some enhancements [to DLDV], and while many of those enhancements would be really great, the problem is that some of them would bounce us over into an area where it would not be legal for us to do some of the things they are asking for. It’s a learning process for them to learn what data we can and can’t release.

I also hope that if there is a greater detection of fraudulently prepared licenses through the use of DLDV, we will hopefully be able to curb the creation, distribution and use of these false documents. We hear stories about how these cards are out there, and DLDV will better equip us to find those cards and hopefully, eventually, identify where they are being obtained. Then, once we find the source, we hopefully can combat the process altogether.

 

DLDV in the Commercial Sector

Driver license data verification is a logical and necessary next step, and I’m very glad that AAMVA’s doing it. This is a whole new capability, and this is the ultimate way to do it. DLDV goes right to the source [the department of motor vehicles] in real time, and verifies the data on the driver’s license or identification card.

We’re not just in the business of the department of motor vehicles; we’re really in the business of the “department of identity,” because that’s what that card is used for. It is the de facto standard in North America of who you are. DLDV makes proving who you are more secure—it makes it more likely that the person showing an ID card is really that person.

My company, Intellicheck Mobilisa, employs a technology to read barcodes and subsequently obtain information from driver’s licenses, and our customers use that data in various ways. But there’s currently one missing piece, and it’s a piece we would like to see AAMVA’s DLDV service provide in the future: We would like to take that information and actually talk to the source and check it and see if [the ID card] is live.

What if someone has a completely valid driver’s license—the card is real—but unbeknownst to the person checking it the license was suspended or revoked just a few days prior? The DMV knows that, but, for example, a rental car agency looking at the license doesn’t. With this potential enhancement to the service, the rental car company would be able to know the status of the license.

Enterprise Rent-A-Car is one of our customers. They scan the barcode on the back of the driver’s license, and that action pulls the name and the address [and additional data] to help them fill out their forms. But what they would like to do, and other rental car companies have also asked this of us, is they wish there was a way we could talk to DMV databases live and find out if an ID card was stolen or a license had been suspended. They care about that, but they haven’t been able to do this. So one of the most logical places you’ll see DLDV in the future is with rental car companies. It just makes sense. They need to very quickly verify data on the license.

We fully intend to offer DLDV as an added security feature to our customers. It gives the final end user and our customers (retailers) an added benefit. Right now, DLDV is only in a handful of states. A logical and important next step would be other states also joining and adding on to the service.