How Do ID Scanners Work? ID Scanning in the Enterprise

ID scanning software extracts data from identity documents such as ID cards, passports, or drivers’ licenses to produce a digital, queryable, and human-readable version of the data. It is faster and more reliable than traditional manual ID checks.

Automated ID scanning also bakes in an audit trail of what ID checks are happening and the reasons why.

This guide explains how ID scanners work, from data capture to fake ID detection, and walks through the most common use cases, such as age-verified delivery, car rentals, passport scanning, financial services, and employee onboarding.

ID scanners read and process information from identity documents and evaluate various components to determine both validity and authenticity. Some of the components an ID scanner analyzes include first and last name, home address, birthdate, hair color, height, date of issuance, and ID number.

ID scanning is a form of computer vision. This is the branch of computing that enables computers to “see” and interpret the visual world, using algorithms specific to the use case and the type of data being extracted. The type of computer vision most commonly associated with ID scanning is optical character recognition (OCR).

There are three main steps ID scanners follow.

1. Capture a usable image of the ID

• The scanner is passed over the ID, and a sensor captures an image of the document.
• If needed, the software uses image processing techniques to clean up and make the image ready for data extraction.
• Scanning from a video feed is usually a faster and more effective process than taking a still photo, as the software has multiple frames to work with.

2. Extract data from the ID

• The software converts visual elements within the image into digital data usable by other applications.
• Data extraction uses a combination of techniques, such as OCR, barcode scanning, RFID, and image recognition software.
• Extracted data is usually converted into a queryable and human-readable format.

3. Authenticate the ID

• For some use cases, it’s sufficient just to extract and store identity data. In many use cases, you also need to authenticate the ID.
• The software analyzes the extracted information against established baselines to determine the authenticity of the ID.
• ID authentication answers questions such as: How old is the owner of the ID? Has the ID expired? Is this US Driver’s License a ‘REAL ID’? Is the person presenting the ID the ID's owner? And is the ID actually a fake?
• ID scanning software can perform all these checks automatically, not only reducing the risk of human error but also creating a built-in audit trail.

Here are the most common data fields extracted from identity documents:

Identity document data fields
Address Citizenship Date of birth (DOB) Eye color Full name Gender Height Place of birth	Date of issue Document number Document type Endorsements Expiration date Issuing authority or region

You don’t necessarily need to extract all the data. The decision will depend on your location, the type of ID you are scanning and your use case.

This data is stored in different locations on IDs, using different encoding techniques such as the American Association of Motor Vehicle Administrators (AAMVA) Driver License and Identification Standards.

Here are the most common types of data encoding used by IDs:

Visual Inspection Zones

A Visual Inspection Zone (VIZ) is part of an ID that contains printed personal details, such as name or date of birth. It is usually located on the front of ID documents in human-readable formats.

Data from driver's licenses in the EU and UK, and many other driver's licenses and ID cards, can only be captured by scanning personal details from the VIZ using OCR.

Machine Readable Zones

Machine Readable Zones (MRZs) are strings of letters, numbers, and symbols typically found at the bottom of identity documents, such as passports, visas, and ID cards. These zones encode the ID's personal details, along with fraud-detection numbers (or a checksum), in a standardized format for greater accuracy and additional security.

• MRZs are read through a specialized form of text recognition.
• Machine Readable Travel Documents (MRTD) include many countries’ ID cards, all passports, and visa stickers. These documents are standardized by the International Civil Aviation Organization (ICAO).

PDF417 barcodes

PDF417 barcodes encode the personal data of an ID into a scannable barcode. They are used on all driver’s licenses in Canada and those issued in the USA by the American Association of Motor Vehicle Administrators (AAMVA), as well as on US Military IDs.

Identity photos

Almost all IDs include a photo of the identity holder. In many scenarios, an employee will need to review and even store this image to compare it to the person presenting it as a form of visual verification.

ID scanning software can extract the photo and either:

• Present it to the user clearly so that it can be used to check if it matches the face of the real person presenting it.
• Use image recognition software to automate the comparison of the identity photo with the person presenting the ID.

ID scanners detect fake IDs by comparing the data extracted from a document against known formats and patterns to identify and score anomalies in the barcode and data fields. The more anomalies, the greater the likelihood that the document is fake.

Challenges in fake ID detection

There are two main challenges in fake ID detection:

1. Fake IDs are becoming more accessible and sophisticated. With a quick online search, it's easy to obtain high-quality fake IDs at reasonable prices. As their quality improves, these IDs are more likely to pass basic visual inspections by untrained personnel, posing challenges for businesses relying on traditional ID verification methods.
2. Achieving the speed necessary to authenticate IDs without slowing down the business or customers. For example, in last-mile delivery, consumers don’t want their products delayed by the time required to verify their identity.

It's crucial to stay ahead of the trends counterfeiters use to create fake IDs. Using advanced technology, such as Scandit’s solution, is one way to detect fake IDs fast before they reach your checkpoints. Such technology can help you comply with regulatory requirements and protect your business’ reputation.

Scandit's advanced fake ID detection methods

Using AI and machine learning, Scandit’s solutions identify subtle discrepancies to validate IDs in just one second. These detection methods may seem simple on the surface, but there’s a lot of hidden work “under the hood” to ensure they're more advanced and reliable than others.

Scandit’s solution incorporates multiple layers of verification to ensure validity and enable workers with accurate, real-time information.

ID scanning meets business needs by maintaining security and compliance, and protecting your reputation. It helps prevent unauthorized access to products and ensures adherence to legal requirements. Additionally, ID checks allow businesses to verify the authenticity of identification documents, reducing the risk of fraud.

This not only protects sensitive areas or products but also helps maintain accurate records for regulatory audits.

Benefits of automated ID scanning

Automating the ID scanning process offers several benefits. It reduces overall costs by streamlining human effort and reducing errors, which is why many industries are exploring automating once manual tasks.

In addition to cost savings, automated ID scanning increases data extraction speed and accuracy, saving time for the organization and the ID holder. It creates a digital audit trail, ensuring accountability, adherence to industry best practices, and improved data management.

Finally, automated ID scanning can detect today’s sophisticated fake IDs more reliably than humans can.

Regulatory compliance needs

For many industries, checking and authenticating IDs is a legal requirement. Non-compliance can result in fines, loss of licensing, and potential risks to public health and safety. ID scanning helps businesses meet age restrictions, prevent fraud, and adhere to other regulations. It also creates an audit trail to prove compliance during inspections or check-ins.

There are three high-level use cases that drive the need to scan IDs:

1. To determine what is on the ID

For many ID scanning use cases, it’s sufficient to accurately and securely extract the data. The data can then be queried to perform basic checks.

For example, a date of birth printed on an ID can be checked to ensure that the person is indeed overage. Or an airline can check whether the name on a passport or identity card matches the name on a boarding pass.

2. To determine whether the ID is real

The second scenario is when fake IDs present a business risk (for example, if a business sells age-restricted goods).

There are multiple methods for producing fake IDs, and therefore, multiple detection methods are needed. Fake IDs also vary widely in their level of sophistication, from the mass-produced fakes often used by underage drinkers to extremely sophisticated bespoke fake IDs used by criminals for activities such as money laundering or fleeing law enforcement by leaving a legal jurisdiction.

Fake ID detection methods might include anything from checking expiration dates to checking elements of the technical structure of an ID that forgers find it difficult to reproduce. This can include checking elements invisible to the naked eye.

The more methods of fake ID detection you use, the greater the chance of detecting a fake ID. However, some methods can result in long, expensive processes that are impractical or unscalable for many use cases. Businesses typically do a risk-benefit analysis to decide on the level of fake ID detection they need based on factors such as the value of goods, regulatory risk, and the type of fake IDs likely to be encountered.

3. To determine whether the holder of the ID is the owner of the ID

The third scenario is to check whether, even if an ID appears authentic, the person presenting it actually owns it. For example, for self-serve verification on a website, you might want to check for what is known as “liveness” — that the ID being scanned in is not just a photocopy. Or you might want to use image recognition to compare the photo on the front of the ID with the person presenting it.

Industry-specific use cases

Here, we look at different scenarios and how deploying ID-scanning software on smart devices can help you create differentiated customer and employee experiences.

Employee onboarding

ID scanning software can be integrated into employee apps to enable fast, seamless onboarding for new, temporary, or seasonal workers, such as delivery drivers, accommodation hosts, or taxi drivers.

Providing a flexible way to scale the workforce while remaining compliant, new workers can simply scan their driving license or other identity documents to record personal information and quickly confirm relevant details, such as their status, as a registered driver.

Completing forms is a breeze, as scanning the ID reduces time spent on manual data entry and eliminates mistakes caused by human error.

This feature is especially useful if you’re onboarding large numbers of holiday workers, for example, when ramping up for seasonal peaks, allowing the business to scale at the speed of need.

Age-verified delivery

Compliance issues around the purchase and delivery of age-restricted goods are serious and growing in magnitude. For example, age-restricted deliveries like alcohol and mail-order prescriptions have skyrocketed.

Such deliveries traditionally required drivers to visually or manually verify IDs on the doorstep. Not only can this increase dwell time for each delivery, reduce earnings of drivers on a ‘per drop’ basis, but it can also lead to non-compliance issues.

A recent Serve Legal compliance audit found that only 45% of rapid delivery drivers asked recipients for proof of age when delivering orders requiring ID verification, leaving delivery companies at risk of legal and financial penalties and reputational damage.

Introducing automated ID verification apps on mobile devices will help improve your compliance rates. It offers quick and easy age verification on doorsteps, in bars and restaurants, or at the curbside.

See how easy it is to verify a person’s ID on the doorstep:

Car rentals

ID scanning transforms car rental experiences by streamlining processes for both customers and employees.

Customers can quickly scan their driver’s licenses, expediting bookings and reducing the need for physical visits. Employees benefit from multifunctional tools that combine barcode, VIN, and ID scanning capabilities on a single smart device, enabling efficient customer registration and inventory tracking.

These features collectively enhance operational efficiency, improve customer satisfaction, and reduce the need for physical interactions in the car rental industry.

Loyalty card scanning

Customers increasingly expect a seamless omnichannel shopping experience, and loyalty programs are an important aspect — not only for delivering customer value but also for helping you gain valuable data and insights into consumer behavior.

Despite the promise of rewards, special offers, and tailored promotions, customers often suffer from ‘app fatigue’ when asked to install new apps on their devices. Research by PYMNTS suggests that 77% of consumers keep just five or fewer merchant apps on their mobile phones.

Adding ID scanning to customer-facing retail apps simplifies and speeds up the app adoption process for your customers. By scanning their ID and/or loyalty card, the customer’s personal information is automatically extracted and processed, eliminating the need for manual data entry.

Passport scanning/Self check-in

Many airlines are shifting from costly fixed passenger identification scanners to more cost-effective smartphone-based ID scanning with mobile agents.

ID scanning on mobile devices makes passport and boarding pass checks at the airport fast, flexible, and efficient, as staff can ID passengers on the go — at check-in or at gates — quickly processing a wide variety of machine-readable ID documents, including ID cards, driving licenses, and visa stickers.

ID scanning software also enables passengers to self-check in by scanning their passports at home during online check-in on the airline’s website or app.

Mobile or self-check in speeds up airport workflows, making boarding and travel operations more seamless and convenient. Software can also verify document authenticity by reading the RFID chip on ePassports to maintain security.

Financial services

ID scanning in financial services helps businesses protect trust, enhance security, and comply with regulations — especially in today’s world where financial crimes and fraud are common.

Scanning helps ensure security when opening a new account or completing any sort of transaction.

Scanning also helps with Know Your Customer (KYC) regulations. KYC regulations are guidelines and standards that require professionals in the financial industry to verify identity (as well as financial profile and suitability) to conduct a business relationship. KYC regulations are key regulations designed to prevent money laundering and fraud, among other financial crimes.

Healthcare

ID scanning in healthcare can enhance everything from the initial medical check-in process to verifying patient identities and ensuring accurate medical records.

ID scanning isn’t just important for workers in the healthcare industry, but it can also improve the overall patient experience. From signing up and registering for various apps, including health insurance applications, to a faster, more streamlined overall check-in process, there are benefits for patients as well.

Hospitality and events

If you’re having an event, only those on the guest list may be admitted. ID scanning can help speed up identity verification and admission for those invited or approved to enter.

ID scanning can also enhance security at these events by verifying the identities of guests and attendees. Should there be a problem, the data capture and audit trail can quickly identify the source of the issue.

A smart device (such as a smartphone, handheld computer, or tablet) equipped with ID scanning software gives anyone who needs to verify a person’s identity instant access to a mobile ID-scanning tool.

These solutions help reduce delays or disruptions in ID scanning workflows and are often more cost-effective than dedicated ID scanning hardware.

Options for ID scanning with smart devices

ID scanning capabilities can be integrated with smart devices using native mobile apps, web apps, or websites.

Native apps

Native apps are developed for a specific operating system (OS), making them perfectly compatible with a device’s features and giving developers greater control over how they interact with the device's hardware.

When a native ID scanning app is released, users must download and install it, and it must be updated as new releases become available.

For employee-led ID scanning scenarios, such as passport checks at the airport or ID checks for delivering age-restricted goods, a native app can be beneficial as it does not require internet access. This means employees can quickly scan an ID and verify identity and age from anywhere without limitations.

Web apps and websites

Web apps and websites are accessed through a web browser, so users don't have to download, install, or perform user updates. Any camera-enabled smart device can become an ID scanner by opening a web browser app, such as Chrome, Safari, or Firefox.

Integrating ID scanning software into web apps opens up opportunities to improve customer experience. For example, customers can check in for flights and sign up for loyalty programs remotely, using their own devices, without employee assistance or downloading an app.

Watch this on-demand webinar for tips on choosing a successful ID scanning solution:

ID scanners protect information by controlling what is captured, processed, stored, and accessed throughout the scanning process. Without sufficient security and privacy controls, this pipeline can leak sensitive data fast if it's treated like “just another camera feature.”

ID scanners with a strong security posture implement these practices:

1. Minimize what is collected and stored: Only the necessary document fields and characteristics are captured to minimize the risk of exposure.
2. Process data on device: Minimize network and cloud data exposure by processing all ID document data on the same device on which the software is running.
3. Encrypt data in transit and at rest: Secure communications and data storage to minimize exposure risks.
4. Comply with applicable standards: Implement the guidelines and practices recommended by industry standards, such as GDPR and CCPA.

Scandit ID scanning software follows these practices under a security by design approach and is ISO 27001 Certified.

Scandit’s fast, accurate and secure ID scanning software supports over 20,000 mobile device models and works on all major operating systems and frameworks. It can be added to both native and web applications.

ID Scan extracts data from ID cards, visa stickers, passports, drivers’ licenses, and military IDs.

ID Validate analyzes hundreds of characteristics extracted from an ID to detect forgery errors and verify whether an ID is real or fake.

• Covers 2,500+ documents worldwide
• Scans each ID in less than 1 second
• Up to 100% accuracy for all major document types
• 99.9% ID authentication accuracy
• Scans Visual Inspection Zones (VIZ), Machine Readable Zones (MRZ) and PDF417 barcodes
• Fast and easy integration with support for over 20,000 devices
• Dedicated enterprise support team

Scandit provides three options for integrating ID scanning into your workflows:

ID Bolt	Scandit Express	Data Capture SDK
Pre-built web component for fast deployment	Turnkey app for instant deployment	Fully customizable capabilities
ID Scan	ID Scan, ID Validate	ID Scan, ID Validate
Supports any modern web browser	Scan into any app using any Android or iOS smart device	Web and native platform support. Support for all major frameworks and programming languages.
Try ID Bolt for free	Try Scandit Express for free	Try SDK for free

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ID scanning demo apps for web and native

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How do ID scanners work?

ID scanners work in three steps: capturing and cleaning up an image of the ID, extracting data using optical character recognition (OCR) and barcode scanning, and authenticating the document by verifying security features and comparing the extracted data against known patterns.

What do ID scanners detect?

ID scanners detect and extract information from identity documents, including name, date of birth, address, ID number, expiration date, and document type. Advanced ID scanners also detect fake IDs by analyzing security features such as holograms, UV ink, and physical document characteristics.

What data can be extracted from IDs?

ID scanners extract data fields that include full name, date of birth, address, ID number, date of issue, expiration dates, height, weight, eye color, restrictions, endorsements, and document class. This data is typically encoded on a document using different methods, such as a Visual Inspection Zone (VIZ), a Machine Readable Zone (MRZ), and a PDF417 barcode.

What types of IDs can scanners read?

Enterprise ID scanners typically read driver's licenses, state IDs, passports, military IDs, green cards, visa stickers, and international identity documents.

Can ID scanners detect fake IDs?

Yes, advanced ID scanners can detect fake IDs using multiple methods, such as barcode validation, pattern matching against authentic templates, UV light analysis, and hologram verification. Newer, AI-powered ID scanners supplement these methods with machine learning to parse non-standard, never-before-seen document formats, helping businesses stay ahead of new ID types and fraudsters.

Is ID scanning data encrypted?

Yes, ID scanning can encrypt data as part of its process, depending on industry requirements and the chosen software. Some ID scanners encrypt data in compliance with industry standards, such as NIST and PCI DSS, while others use minimal encryption. For businesses in regulated industries, such as e-commerce and financial services, ID scanners must comply with data encryption, retention, and privacy standards.

Do ID scanners save information?

Yes, ID scanners can save information depending on the chosen software and the device configuration. Some ID scanners store data temporarily for verification only, while others retain subsets of information for compliance purposes. For businesses in regulated industries, such as travel, age-restricted goods, and financial services, ID scanners must comply with GDPR, CCPA, and other industry-specific regulations on data retention, encryption, and privacy.

Do ID scanners work offline?

Yes, ID scanners can work offline if the software supports operation without internet connectivity. Many modern ID scanners, particularly mobile-based solutions, work offline by processing data on-device. This enables ID capture and authentication in areas with poor connectivity and often improves scan times as there is no need for communication with cloud services.

Are ID scanners GDPR compliant?

Yes, ID scanners can be GDPR compliant when their software is configured properly. Key compliance requirements are explicit user consent, data minimization (collecting only necessary fields), encryption, limited retention periods, and the provision of data access/deletion rights.

What's the difference between barcode scanning and OCR for IDs?

The difference between barcode scanning and optical character recognition (OCR) for IDs is that barcode scanning extracts data from 2D barcodes (usually PDF417) and OCR reads printed text from ID documents. This printed text is usually in a Visual Inspection Zone (VIZ) and/or a Machine Readable Zone (MRZ) on an ID. Advanced ID scanners use both methods simultaneously to reduce capture and authentication times.