Troubles with New Identity Check System and Cybersecurity Concerns
Flaws in the government's ID overhaul criticized by supervisors
In the UK, six million registered company directors are grappling with a new identity verification system introduced by Companies House, facing technical issues, lack of awareness, and complexities for overseas directors [1][2]. Meanwhile, concerns about cybersecurity have arisen regarding the "One Login" app used in the process, although specific details about these concerns are not provided in the given context.
The mandatory identity verification for UK company directors and persons of significant control (PSCs) is part of the Economic Crime and Corporate Transparency Act, aimed at combating fraud and money laundering [3][5]. Despite its importance, the system's effectiveness and security are essential for it to be successful in reducing corporate fraud without introducing new risks.
Technical Issues and Lack of Awareness
Users have reported encountering technical problems while attempting to verify their identities, such as system crashes or errors, which hinder the verification process [1]. Additionally, many directors are not aware of the new requirements or are not complying promptly, leading to potential backlogs as the deadline approaches [1][2]. As of now, only about 4% of the affected individuals are compliant [1].
Complexity for Overseas Directors
Overseas directors face additional hurdles due to the need for non-biometric documents and specific registration requirements, which can slow down the verification process [1].
Cybersecurity Concerns with Identity Verification Systems
Given that the focus is on identity verification rather than the One Login app specifically, concerns about cybersecurity include ensuring the secure storage of personal data, protecting against identity theft, and addressing system vulnerabilities [4]. The implementation of such systems requires robust security measures to protect user data and ensure the integrity of the verification process.
Broader Context
Under new rules, six million registered company directors must undergo checks within three months or be unable to file accounts with Companies House. The process involves linking existing '.gov.uk' accounts with a new app called One Login. Users can seek support for issues with the new identity check system. Each platform (AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212) has a 'Learn More' option for further information. Officials have admitted that the new checks would not allow some to complete the process and that they would need to resort to old-fashioned methods, such as visiting a Post Office [3].
It's worth noting that the One Login app does not meet all security standards, potentially putting users at 'significant risk' of a data breach. Users have reported various difficulties, including digital codes failing to appear, an 'infinite loop' of login screens, and the system failing to recognize documents as evidence [3].
This article does not contain advertisements. Protecting the security and privacy of Government services is a priority. For users experiencing difficulties with the new identity check system, there are alternative routes available.
Investors might find technology-based solutions, such as the One Login app, crucial in the context of identity verification for UK company directors. However, concerns about technology, including cybersecurity issues and system vulnerabilities, have emerged regarding the app's security and the potential risk of data breaches.
