Key Takeaways

• Fraud is increasing fast — fake IDs and biometric fraud jumped 42% in 2024, making strong identity verification more critical than ever.

• Using multiple identity providers strengthens security — cross-checking applicant credentials across different IdPs helps detect inconsistencies and prevent fraud.

• Grid simplifies identity verification — with a single API, businesses can access multiple IdPs, reduce compliance burdens, and streamline applicant verification.

Fraud is only getting worse. In 2024, there was a 42% jump in fake IDs and suspicious biometric transactions compared to the year before. These activities included using deepfake technology to bypass facial recognition, synthetic fingerprints to trick scanners, and irregular user behavior (e.g., inconsistent typing rhythms or erratic mouse movements) that indicate possible bot-driven fraud. As scammers get smarter, organizations need better ways to confirm identities and stop fraudsters. 

Verifying identities is a vital requirement for banks, fintech companies, and regulators. They use identity providers (IdPs) to verify applicants before approving them. And strong security measures help prevent fraud and protect sensitive information. They also ensure compliance with industry regulations like KYC (Know Your Customer) and AML (anti-money laundering) guidelines. 

Let’s break down how IdPs work, why they matter, and how Grid makes identity checks faster and easier with a cloud-based, API-powered system that consolidates multiple identity providers into one seamless workflow. Discover how Grid can help you reduce costs and increase verification accuracy for your business.

Identity Providers 101

IdPs play a crucial role in online security by verifying digital identities, supporting IAM (Identity and Access Management) strategies, and detecting fraud. Businesses use them to protect sensitive information, comply with regulations, and simplify authentication. 

The right IdP should align with security needs, compliance standards, and long-term growth plans. Understanding how IdPs work helps businesses choose the right solutions

What is an Identity Provider?

An IdP confirms a user’s identity by verifying credentials, biometric data, or authentication tokens so they can securely access applications and services. Many enterprise IdPs, such as Microsoft’s Azure Active Directory, provide robust authentication frameworks that integrate with various security protocols.

IdPs manage login credentials, enable user authentication, and support provisioning by automating the creation and management of user accounts across multiple systems. They also control user access by enforcing security policies and permissions so that only authorized individuals can interact with sensitive systems and user data. Common federated identity protocols and authentication methods include:

• Single sign-on (SSO): Allows users to access multiple applications with one set of credentials

• Open Authorization (OAuth): Provides secure token-based authorization

• Security Assertion Markup Language (SAML): Facilitates secure authentication by exchanging identity data between an identity provider and a service provider

• OpenID Connect (OIDC): Builds on OAuth to add identity verification and strengthen access control

By centralizing authentication, these methods simplify login processes and reduce security risks like password fatigue and phishing attacks.

Types of Identity Providers

Different types of identity providers serve different authentication needs. Here are some of the most common IdP scenarios:

• Workforce identity solutions: Manage internal user access for businesses

• Customer identity and access management (CIAM): Ensure secure and seamless logins for external (non-workforce) users

• Government IdPs: Provide identity verification for public services

• Social IdPs (like Google or Facebook): Allow users to authenticate using existing credentials from other platforms

Why Identity Providers Matter in Applicant Checks

IdPs play a key role in securing access by verifying identities and enforcing security policies. They help businesses prevent unauthorized access by managing credentials and supporting authentication methods. 

Multi-factor authentication (MFA) and biometric verification further strengthen security. MFA requires users to confirm their identity through various steps, such as entering a password and confirming a mobile code.

Biometric verification includes authentication processes like fingerprint or facial recognition, and it adds another layer of protection. 

By combining these methods, IdPs make it much more difficult for fraudsters to gain access. 

Why It’s Good To Have Multiple Identity Providers

Using multiple IdPs enhances security by cross-checking different aspects of an applicant’s identity information. Fraudsters often manipulate identity data, but with multiple providers verifying credentials, biometric records, and behavioral patterns, organizations can detect inconsistencies more effectively. This layered approach strengthens fraud prevention by improving verification accuracy.

4 Benefits of Centralizing Identity Providers

Relying on a single identity provider can create gaps in security and efficiency. By centralizing multiple providers within one system, businesses gain stronger verification capabilities, improved fraud detection, and a more seamless user experience (UX).

1. Integrated Relationships

Managing multiple IdPs presents challenges — ensuring compliance with regulatory standards, integrating different systems, and handling varied data formats. These complexities can slow down verification processes and increase administrative overhead.

Historically, companies have needed separate agreements with each provider. This is operationally cumbersome and has required a ton of administrative and logistical effort. Grid simplifies the process by offering a single contract, one API, and one platform that allows businesses to configure and connect with multiple identity verification providers effortlessly.

2. Streamlined Verification

Businesses that centralize identity verification through Grid eliminate redundant processes. They no longer need to manually compare applicant details, re-enter data across multiple systems, or resolve inconsistencies between separate verification tools.

Instead of juggling different provider interfaces, companies can conduct all verification steps in one place. This helps them reduce processing time, minimize human error, and streamline compliance checks. By consolidating identity verification into a single platform, organizations eliminate the need to switch between multiple systems — which helps them cut down on errors and enhance efficiency.

3. Improved Security

Integrating multiple IdPs into a centralized system strengthens security by incorporating encryption, access controls, and risk assessments. Instead of relying on a single verification method, businesses can cross-check applicant data across different providers to catch inconsistencies, detect suspicious activity, and flag potential fraud. 

This layered approach improves accuracy — reducing false positives and preventing duplicate identity entries — while guaranteeing data remains consistent across multiple sources.

4. Cost and Time Efficiency 

A fragmented verification system increases costs due to manual reviews, vendor management, and compliance efforts. It also slows down applicant verification, which leads to delays and inefficiencies. 

Consolidating providers into a single platform helps companies reduce administrative burdens and automate verification steps. Grid helps organizations speed up processing times — while improving accuracy — by eliminating redundant checks and manual data comparisons.

Identity Provider Partners We Trust

The right identity provider can help financial teams secure business operations and cut down on fraud risks. Grid works with top identity verification and authentication services to help organizations streamline applicant verification and enhance security. 

Experian

Grid partners with Experian, a leader in identity verification, to provide businesses with powerful authentication solutions through a variety of products.

As a certified reseller of Experian solutions, Grid offers exclusive benefits to organizations — including cost savings, seamless integration, and enhanced security. 

Consumer Credit Profile

The Consumer Credit Profile integration from Experian helps lenders evaluate an applicant’s creditworthiness by reviewing payment history, outstanding debt, and credit utilization. These insights allow financial institutions to make more informed lending decisions and mitigate risk.

Business Owner Profile

Experian’s Business Owner Profile integration helps companies assess the financial health of business owners by analyzing credit scores, outstanding debts, and payment history. Lenders use this data to determine risk levels before extending credit.

When companies partner with Grid, they gain direct access to Experian's verification tools without the complexity of managing multiple vendor contracts. A single contract and API streamline onboarding, lower operational overhead, and ensure smooth integration with existing workflows.

Other Solutions We Support

Grid also partners with other leading identity verification providers to give businesses access to a wide range of authentication solutions. These integrations enhance fraud detection, improve compliance, and simplify identity verification processes — all within a single platform.

By consolidating multiple providers into one streamlined system, Grid removes the complexity of managing separate vendor contracts and APIs. This not only reduces administrative overhead but lowers costs and speeds up onboarding. Businesses benefit from a more secure, efficient verification process without the burden of juggling multiple systems.

Grid’s trusted partners specialize in different aspects of identity verification — from credit history analysis to biometric authentication and business verification. These partnerships ensure businesses have comprehensive, industry-leading security solutions tailored to their needs. Some of our trusted partners are:

• Equifax

• LexisNexis

• Veriff

• Middesk

• Federal Motor Carrier Safety Association

• Velex

Simplify Applicant Checks With Grid and Our Partners

Many businesses struggle with identity verification due to fragmented systems, compliance challenges, and security risks. But managing identity verification shouldn’t be complicated. Grid simplifies the process by providing a single platform to access multiple trusted providers — ensuring fast, secure, and cost-effective applicant verification. And by integrating Experian and other trusted identity verification solutions into one seamless workflow, organizations can enhance security and reduce fraud risks while streamlining the entire process.

Experience how Grid can transform identity verification for your business. Schedule a demo today to get started.