Identity information must now be discovered prior to opening an account at a financial institution. Drastic steps in identity verification have been taken since the September 11 tragedy in 2001. The USA PATRIOT Act was developed to prevent future acts of terrorism or fraud only a month after this tragedy. Sections 314 and 326 of the Act specifically pertain to verifying identity information at financial institutions.

Discovering Identity Information About Applicants

All financial institutions are required to comply with the rules of the USA PATRIOT Act. According to this act, institutions must screen all applicants before allowing them to open an account. Applicants can be screened when financial institutions check for reports of previous fraudulent activity or for applicants who are listed on government watch lists. Institutions will need a good software program to aid them in identifying proper identity information.

ID verification programs can use the services of EFunds. It is often the most cost-effective and easy-to-use solution available to financial institutions. ID verification programs are essentially web-based tools that do all the work for you in verifying identities. These services can check over 20 billion records and screen government watch lists that are constantly updated.

The best ID verification system will have the ability to integrate with other ChexSystems products that may be used at a financial institution. If your institution is currently using one of these programs, ID verification programs can be acquired to correspond with them. ID verification is one of the best systems an institution can use to combat terrorism and fraud.