Should you open a bank account in person, or online? Apply for an appointment to register your vehicle on site, or digitally? Digital services and even contracts are now part of many people’s daily lives.
But of course, just because something is simple and easy, doesn’t mean it’s safe. When you are online, it can be more difficult to determine who precisely is making a query or using an online service. Secure identification methods are required in order to clarify, without a doubt, who is signing the contract or using the service. German banks, for example, are required to follow laws that lay out which identity verification procedures they can use to identify clients attempting to open an account or apply for a loan.
Use your ID card to verify your identity online
Anyone with a German ID card with online PIN can use this combination to verify their identity online. Personal details such as your name, address and gender have been stored in a tamper-proof chip on the card since 2010. The data are transmitted on an encrypted channel, made possible by NFC technology. NFC stands for Near Field Communication and is used, for example, for contactless payments at the shops. Advantage: this is an extremely secure means of identification, which can be done quickly and at any time.
Tip: You need your 6-digit PIN in order to use your electronic national identity card. You can apply for a new PIN if you forget yours. Inquire at your local citizen’s office (Bürgeramt) for more information.
Video identification
The video identification process can be completed using a smartphone, tablet or PC with webcam. If you choose this method, for example when opening a bank account, you will be transferred from the bank’s website to that of an authorised service provider. There, a video chat window will open and a trained employee will guide you through the identification process. You will be asked to hold your ID up to the camera at a variety of different angles and follow further instructions, such as using the webcam to allow your face to be compared to the ID photo. You will also generally be sent an additional security code or TAN via SMS or email. You will have to provide this code at the end of the process in order to receive confirmation that the identification was a success.
Some video identification services are now (partially) automated. That means that certain parts of the process take place via an automatic process in the service provider’s app. These can be used, for example, when taking out a loan and using an electronic signature.
Five tips for secure online identification:
Take the following precautions in order to ensure that the online identification process is safe and reliable:
- Take good care of your ID and do not give it to anyone unless doing so is strictly necessary. It’s also important that you do your best not to provide copies of your ID to third parties, for example if you are asked to do so by an unknown person on an online sales platform.
- Your electronic ID PIN should be treated just like the PIN for your debit or credit card: do not write the PIN down anywhere and never share your PIN with anyone. Select a PIN that is easy to remember but not easy to guess. Do not save your PIN on your mobile devices.
- Be especially cautious if you are asked to prove your identity unexpectedly. Scammers use false scenarios in an attempt to convince people to go through an ‘identification process’ with them. For example, they publish extremely tempting ads for apartments and then ask applicants to go through the identification process in order to sign a rental contract – which of course does not actually exist. Instead, the criminals behind the scam attempt to use this identification to open a bank account or take out a loan. Another scam attempt is offering seemingly lucrative part-time jobs, for example as a tester testing account opening processes at banks. However, if you take this ‘job’, you will actually be opening real accounts in your name that can then be misused for criminal purposes.
- During the identification process, make sure you pay careful attention to why you are being asked to prove your identity. You should be asked to confirm the reason for the identification during the process. If the reason given is not the one you thought it was, you should decline to continue the process. Do some research to check whether or not the offer is legitimate. It can also be helpful to talk to your family and friends about your plans. People who are close to you may already be aware of similar scams and can help you to decide if an offer is serious or not.
- An association called Deutschland sicher im Netz (Online safety in Germany, SsiN) offers a variety of courses (in German) designed to help people improve their online safety skills, including a digital ‘driver’s license’ that can be used to test understanding of various concepts. There is even a special module focusing on online banking. The courses offered by the association are free of charge and can be used by both private individuals and companies.
