The Purpose of Identity Verification, With Insights From Gartner Report

In an increasingly digital world, the question of identity has become more complex than ever. How do we know who we’re really dealing with when interactions happen through screens rather than face-to-face?

This challenge has given rise to sophisticated identity verification solutions that go far beyond simple username and password combinations.

Gartner® is a company that delivers actionable, objective insight to executives and their teams, and is known for their comprehensive market research, including the influential Magic Quadrant™ reports that evaluate and position technology vendors.

In 2024, Gartner® published their first-ever Magic Quadrant™ for Identity Verification, in which Incode Technologies was named a Leader. We feel that the choice to focus on this new and fast-evolving technology reiterates its fundamental role in our digital ecosystem and as a key piece of business infrastructure.

The 2024 report defines the purpose of identity verification as “to establish confidence in the real-world identity of a person during a digital interaction when curated credentials do not exist, are not available or do not provide sufficient assurance.”

Beyond Simple Authentication

Identity verification fills a critical gap in our digital infrastructure. While we’ve become accustomed to logging into accounts with passwords or biometric unlocks, these methods assume we already have an established relationship with the service. But what happens when someone needs to prove who they are for the first time, or when the stakes are too high for traditional credentials?

This is where identity verification becomes essential. Gartner explains that these solutions “provide assurance that a real-world identity exists and that the individual claiming the identity is its true owner and is genuinely present during the digital interaction.”

The emphasis on genuine presence is particularly important in combating sophisticated fraud attempts using stolen or synthetic identities. It’s not enough to simply verify that documents exist—the system must confirm that the person presenting them is actually there and is the rightful owner.

Five Key Business Applications

Gartner identifies five primary use cases where identity verification proves invaluable:

Compliance Requirements: Many industries face strict “know-your-customer [KYC] obligations” that require thorough identity verification before establishing business relationships. Financial services, in particular, must verify customer identities to comply with anti-money laundering regulations.

Onboarding Processes: Whether it’s customer registration, remote workforce hiring and employee onboarding processes, organizations need reliable ways to verify new participants in their systems. The shift to remote work has made this particularly challenging and important.

Account Security: Identity verification supports “credential management processes, such as credential enrollment and account recovery.” When someone loses access to their account, identity verification provides a secure path back in.

Fraud Prevention: Organizations use these systems for “preventing fraudulent registrations using stolen or synthetic identities, enabling remote proctoring/invigilation, and securing high-risk transactions.” The ability to detect sophisticated fraud attempts protects both businesses and legitimate users.

Trust and Safety: In our connected economy, identity verification helps with “improving accountability in marketplaces, providing assurance in the gig economy and establishing trust in larger portable digital identity networks.”

Incode received an overall rating of 4.8/5 based on 31 reviews as of 16th July among Identity Verification vendors on Gartner Peer Insights™. Read more here.

The Technical Foundation

Modern identity verification isn’t just about checking an ID card. Gartner outlines mandatory technical requirements that reflect the sophistication needed to combat today’s fraud attempts:

• Document authentication through optical capture, OCR, barcode/QR code analysis, or NFC chip reading
• Facial biometric comparison with integrated liveness detection
• Compatibility with standard consumer devices without specialized hardware requirements

These technical requirements ensure that the verification process is both secure and accessible to users with typical smartphones, tablets, or laptops.

Looking Forward

At Incode, constant innovation is at the heart of everything we do. As the identity verification landscape evolves—driven by sophisticated fraud tactics, stricter compliance requirements, and rising expectations for seamless user experiences—Incode remains committed to staying ahead of the curve.

We are continually refining our platform, integrating advanced AI-driven fraud detection, expanding video verification capabilities, and exploring next-generation technologies that empower users with greater control over their personal data.

Our adaptive, forward-thinking approach ensures that our clients not only meet today’s security and compliance demands but are also prepared for the challenges of tomorrow. Every enhancement we make—from improving biometric precision to streamlining onboarding flows—is rooted in our mission to deliver trust, safety, and efficiency at scale.

As the industry awaits the release of the Gartner® 2025 Magic Quadrant™ for Identity Verification, we’re excited to see how the market landscape has shifted. Stay tuned as we continue to share insights and innovations that are propelling identity verification into the future.

Learn more about Incode.

Gartner Disclaimer:

Gartner, Magic Quadrant for Identity Verification, Akif Khan, James Hoover, Nayara Sangiorgio, 21 October 2024.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, MAGIC QUADRANT and PEER INSIGHTS are registered trademarks of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences with the vendors listed on the platform, should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available to download above.