I’ve worked in the industry for almost 10 years and I’ve observed a persistent sense of hesitancy from consumers involved in a property transaction when it comes time for their practitioner to conduct a Verification of Identity (VOI). While the concept of a VOI is second nature to me, including doing it digitally via secured platforms, I understand why people may be hesitant to have their personal information captured and stored.
I’ve spent a lot of time supporting practitioners with meeting their VOI obligations, which has included speaking to their clients and allaying any hesitancy they may have, so here are my tips for practitioners who want to help their clients feel comfortable with VOI.
1. VOI exists to prevent identity theft and fraud
VOI was officially introduced in 2013 after a serious case of identity theft in Western Australia the year prior. A homeowner returned to Australia following an overseas trip to find their home had been fraudulently sold after a real estate agency failed to conduct proper due diligence. The homeowner’s identity had been stolen and their house was sold, with the scammers being traced back to Nigeria. This was the second case of this in as many years, with another property sold under similar circumstances in 2010.
In a bid to prevent this from happening again, the Australian Registrar’s Electronic Conveyancing Council (ARNECC)’s Model Participation Rules created a Verification of Identity (VOI) Standard to regulate and guide practitioners on how to VOI their clients to ensure they know exactly who they were dealing with. In a nutshell, the Rules require practitioners to take ‘reasonable steps’ to verify the identity of their clients.
If a client is hesitant about having their identity data captured and retained, explaining the history behind why the VOI Standard came about is a way to reassure them that the regulations are in place to protect them and the integrity of the entire transaction, just as it is for other transactions.
2. VOI is done for the smallest of transactions – property should be no different
Remind your clients that they need to have their identity verified to even open a bank account, let alone depositing and moving funds around between it and other accounts. So, if VOI is essential for something as simple as a bank account, it makes perfect sense for it to be the norm for property transactions where hundreds and thousands (if not millions) of dollars are at stake.
3. Digital solutions keep data safe
I’ve recently seen more and more hesitancy from parties involved in a property transaction when they’re asked to have their identity verified digitally. I get it – with high profile data breaches dominating headlines over the last few months, hesitancy towards digital verification of identity and data storage is understandable.
It’s important for practitioners to reassure their clients that conducting a VOI digitally means their records are encrypted in dedicated storage facilities with the highest possible security standards that are much harder to penetrate than the more traditional common methods of storing ID data including an email inbox or a filing cabinet.
How is Livesign addressing VOI concerns?
Livesign goes above and beyond when it comes to mitigating the risk of identity fraud and safeguarding client data. It’s Australia’s first and only app that simultaneously verifies the identity of a person at the precise point of signing a document. This removes the risk of a client later saying ‘I didn’t sign that’ which are dreaded words for a practitioner to hear.
Having a simultaneous VOI and Verification of Signer (VOS) process is a way to put a client’s mind at ease, as it gives them 100% certainty that they’ve signed all the necessary official documents while having their identity verified.
Livesign also gives practitioners the option to redact personally identifiable data (PII) after the VOI is complete, meaning identity document images, numbers and other important details are blurred out when the data is stored. I’ve found this feature is becoming more and more popular amongst practitioners as a way of helping their clients feel more comfortable with VOI. If you need further support with reassuring your clients about VOI, or if you’d like to look at implementing Livesign in your business, visit www.live-sign.com or email info@live-sign.com.
