ID.me and Plaid have introduced a combined identity and bank-account ownership verification service for government benefit programs, allowing agencies to check that a payment destination belongs to the person applying for assistance.
The partnership connects ID.me’s identity proofing with Plaid’s financial-institution data during enrollment. Applicants verify their identity and authorize a bank connection in the same flow, rather than completing separate identity and account checks through disconnected systems.
Plaid verifies ownership of the linked account before an agency sends a benefit payment. The partners say the process can help agencies identify accounts that do not belong to an applicant and reduce errors when people enter direct-deposit information.
Agencies can retain their existing payment processors. The integration supplies an ownership check alongside the verified identity rather than requiring the agency to replace the infrastructure that transfers funds. Applicants authorize the account connection, while agencies receive verification information without obtaining bank login credentials or transaction histories.
The service produces dated verification records for agency review and audit. The partners say eligible claimants can enroll in direct deposit in minutes. Coverage includes regional banks, credit unions and digital-first institutions, where the partners say static databases can provide incomplete coverage.
ID.me provides reusable identity credentials for government and other services. Its proofing process can involve identity documents and a selfie or an assisted video session, followed by multifactor authentication when a verified user returns to an account. ID.me says its service meets NIST’s Level 2 requirements for identity proofing and authentication, which specify controls for establishing identities and securing access.
The company has recently expanded its government sign-in footprint through the TreasuryDirect login transition. Treasury’s savings-bond service began offering ID.me access earlier this month and is preparing to make it the sole sign-in method after October 28.
ID.me has also joined Servos and ServiceNow on state benefits administration. That collaboration embeds identity verification into citizen portals and caseworker workflows for programs including Medicaid, food assistance and temporary assistance for families.
The Plaid partnership adds a separate check on where money is going. An agency can connect a verified applicant with an account-ownership result before using its established payment process, while retaining a record of the checks performed during enrollment.
Sources: PR Newswire
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By the ID Tech Editorial Team
