Financial Crime World

Puerto Rico Sees Significant Increase in Identity Verification Rates Amidst Efforts to Improve Access to Federal Tax System

Background: Struggling with Identity Verification

The Internal Revenue Service (IRS) has long struggled with identity verification rates among Puerto Rican taxpayers. According to IRS data, from 2016 to 2022, only 23.9% of Puerto Rican taxpayers were able to verify their identities using the agency’s Secure Access system.

The Challenge: Limited Digital Footprints and Credit Invisibility

The current verification methods dependent solely on online records struggle to verify individuals with limited digital footprints or those who are “credit invisible.” This has led to significant barriers for many Puerto Rican taxpayers in accessing government services and claiming their rightful benefits.

A Breakthrough: ID.me’s Secure Digital Identity Network

In response to the IRS’s struggles, Resident Commissioner Jenniffer González sent a letter to the agency inquiring about efforts to improve service, accessibility, and secure access to federal tax system applications and websites for Puerto Rico residents. The IRS confirmed it had taken steps to dramatically improve services after modernizing its Secure Access platform in collaboration with ID.me.

The update resulted in a notable increase in verification rates among Puerto Rican taxpayers, with 78.6% now able to verify their identities using ID.me’s secure digital identity network. This network offers video chat verification in multiple languages and provides 24/7 customer support.

Meeting National Institute of Standards and Technology (NIST) Standards

Meeting NIST standards is crucial for fraud prevention, as demonstrated during the COVID-19 pandemic when seven states recognized ID.me’s role in thwarting over $270 billion in fraud. ID.me users can use their credentials across:

  • 15 federal government agencies
  • 40 state government agencies
  • Over 600 consumer brands

Credit to ID.me: Overcoming Government Assistance Obstacles

Rep. González credited ID.me with overcoming government assistance obstacles in Puerto Rico through its omnichannel approach. Marcus Miller, director of strategy for Penta Group, added that ID.me’s work in Puerto Rico is a testament to how ID.me advances digital equity gains by addressing historical access barriers for individuals without credit history, unhoused populations, Americans living overseas, and tribal users.

A Significant Step Forward

The achievement marks a significant step forward in improving access to government services and reducing fraud, particularly in Puerto Rico where ID.me has made significant strides. The success of ID.me’s secure digital identity network demonstrates the importance of collaborative efforts between government agencies and private companies to improve the lives of citizens.