Historically many government agencies have selected a business model for issuing personal ID cards based on policy or legislative issues, or in some cases, they have been driven to select a low-cost method to meet budget requirements, but with growing concern over the security and effectiveness of every ID card system, organizations today increasingly require a broad review of business issues as a critical step in preparing for new and more secure ID card issuance. This post is intended as a reference for government officials and other high-security organizations considering how best to issue secure ID cards. Because there are trade-offs with each system model, and different requirements for each issuing agency, there is no “best” method, but the information below can help you make a more informed choice.
Current Business Models For ID Card Printing
Over-the-Counter (OTC) Issuance: In this process a customer, government employee, driver’s license applicant, etc. typically complete forms at a local government or government-designated office and receive an ID card after the process on, the on-the-spot. Completion of the process involves submission of a written application and supporting documentation, collection of the applicant’s signature and photo image taken with a digital ID camera, processing and approval of the application, and finally, delivery of the finished ID card to the applicant. This process typically requires processing and approval of paperwork and the actual printing of the identification card while the applicant waits. This process can also be completed in two steps, with the application and data collection process taking place during the first visit and the ID card delivered on the second visit following processing and approval. With this second approach enterprise ID card production, and application processing can be done either on-site or at a remote location.
Central Issuance: In this method, an applicant completes data collection forms at a local office, through the mail, or over the Internet, and their ID card is produced off-site at the office’s central location, and the ID card is delivered to the applicant upon completion of the process. Application processing, ID card printing production, and ID card delivery all occur after the applicant’s initial visit, and finished ID card delivery is typically done through the mail from a central production facility. A benefit of Central Issuance systems is the additional time it provides for completing the verification process of submitted documentation. Depending upon the information provided by the applicant, additional time can be devoted to communicating with the issuers of the documents or with other government agencies as needed.
Combined or “Hybrid” Issuance System: This approach combines characteristics of both Central and Over Counter ID card printing methods. Many variations of Hybrid systems are used to meet operational or policy objectives for ID card fulfillment. In some instances a Central Issuance system will be used for all new, initial applications, providing additional time for application processing and review. With this method, new ID cards are delivered to applicants from a central facility, but replacement or renewal ID cards once approved the first time, can then be issued by an Over Counter approach. An assumption critical to this process is that the initial application process was sufficient in confirming the applicant’s data before the primary issuance of their ID card and that the person receiving the ID card and subsequent renewals is the legitimate ID cardholder and not an imposter. In North America, driver’s license issuance business models range from Central Issuance to OTC to Hybrids. Decisions about the appropriate approach in some cases are tied to legacy legislation that dates from the early days of Polaroid instant photo cards and some jurisdictions have changed their approach more than once over the last 10-15 years for administrative or political reasons.
Issues Relating To ID Card Issuance Approaches
A. Customer Service:
All government agencies today are seeking ways to improve service levels for citizens and internal users. An OTC ID card printing approach, which can produce an ID card such as an employee ID card during a single visit to a local office is viewed favorably for the ease with which an identification card can be obtained. Additionally, with this method, the ID cardholder can review the document immediately after it is produced, and can request a reissue if there are any quality problems with the printed data or photo. However, customer service problems can arise if there is an ID card printer with an equipment malfunction. To minimize service disruptions from such scenarios it would be advisable to have backup ID card printing equipment available to be quickly put into service. With a Central Issuance process, the customer completes their transaction when they finish the application process, and they do not have to wait while the documents are verified and the ID card printed. This means customers can spend less time at the local office, freeing up office staff to work with other customers. Central Issuance does introduce a delay between application and receipt of the finished ID card though, and customers may be inconvenienced by this delay. Also, if there is a quality problem with the finished ID card that was not detected during production (e.g. incorrect spelling, customer unhappy with the photo image, etc.) the customer will have to go through the entire process again to get a new ID card issued.
Although it is possible to issue a temporary ID card while a customer waits, there are significant security concerns regarding the production of any temporary identification documents. The most critical concern is that the counterfeiting or alteration of temporary documents into fake ID cards is easy, as temporary documents are not likely to incorporate the security features included on a permanent ID card issued from a secure facility. Another concern is that Central Issuance ID card printing introduces the risk of theft of ID cards during the delivery process. The intended recipient may not even be aware that their ID card has been compromised.
B. Enrollment and Applicant Processing:
In an OTC ID card printing environment, a decision must be made quickly and on the spot about the validity of the documents presented by a customer with their application. Although online services can be used to expedite this process, the responsibility for issuing an ID card is primarily delegated to the office staff at each location and the accuracy and security of the application process are dependent upon the skills and motivation of each staff person charged with authenticating these documents. With sufficient training and experience, staff can learn to “read” the behavior of applicants, and may use more thorough verification procedures if they sense something unusual about an applicant’s behavior. However, there is no margin for error in this process, as applicants receive a genuine ID card at the end of the process. Staff motivation is a critical issue, as the process can break down unintentionally under periods of high stress (e.g. large queues of customers, delays caused by equipment malfunction, personnel issues, etc.) or intentionally if members of staff have been compromised. Genuine ID documents are highly valued by fraudsters, and compromised validation of application identities is a real security concern in official ID card application processing.
ID card renewals or ID card replacements that occur after an applicant is already enrolled can be much simpler to administer, with lower security risks, and they are generally provided under OTC or Hybrid ID card systems. The process should be driven by automated online retrieval of the applicant’s photo and signature capture for comparison to the person, as well as to verify no regulatory issues conflict with that person’s ID card issuance, such as a driver’s license suspension.
C. Cost
The primary differences in cost between OTC and Central Issuance ID card systems depend on which ID card printing equipment is used, as well as the personnel required for producing the necessary ID cards using this ID card printing equipment. In an OTC environment, each issuing office must have the appropriate equipment for ID card printing and production and because ID card issuance volumes can vary significantly on a day-by-day basis it is usually necessary to have excess production capacity at each issuing location. There are additional costs directly related to security policies and include components such as secure delivery of all ID card printing supplies, such as blank ID cards, security laminates, etc., a vault in which to store supplies, destruction or collection of defective ID cards and the cost of conducting regular audits of supplies and ID card printing documentation. Further indirect costs can arise with additional staff training for ID card printing equipment operation and routine maintenance, and for additional office space for equipment and supplies storage. Equipment maintenance covering all issuing locations represents an additional cost in an OTC approach. Part of the service requirement can be handled by local staff (e.g. routine maintenance and cleaning) but the use of office staff adds to indirect costs related to time and training.
Central Issuance allows optimization of ID card printing equipment to meet daily issuance requirements for the entire ID card printing program. Depending upon issuance policies, Central Issuance also provides greater flexibility in smoothing production peaks, so the total equipment requirement can generally be lower than OTC ID card printing. Delivery of the finished ID card documents may be a significant ongoing operating expense, as well as fraud control efforts to investigate any undelivered documents. Central Issuance requires the use of a secure facility with appropriate facility protection and security monitoring hardware and photo ID software. Some indirect costs should be associated with contingency or disaster planning in the event of a major event at the central site. Other indirect costs with Central Issuance are lower, as there is generally more staff assigned to production, providing greater flexibility to cover all printing needs. Similarly, the indirect costs for auditing and dual control at a central facility are lower in comparison to the costs for those functions at every OTC issuing location.
D. Equipment and ID Production Technology
The choice of ID card production technology for OTC ID card printing is generally constrained by costs, limiting alternatives to solutions that are generally:
• Simple to operate, with minimal operator intervention
• Relatively compact, and operate within an office environment
• Relatively lower in cost in comparison to large-scale production equipment
• Generally less flexible in the range of security technologies offered
Because of cost considerations, OTC ID card printing equipment is more likely to be the same or very similar to commercial off-the-shelf desktop ID card printers, using many of the same supply items. The ability to create unique security features with these printers may be more limited in an OTC environment. In addition to hardware considerations, there is also a need for an inventory tracking system at each OTC location to track daily usage of supplies and plan replenishment. If security laminates or pre-printed blank ID cards are used, there is a need for vaults or some secure facility and increased access control security to protect these valuable and potentially vulnerable assets at each location.
A Central Issuance ID card printing approach offers the widest latitude, as it allows an agency to select from a range of security and personalization technologies. Centralized ID card systems can range from custom-built ID card systems that meet specific requirements, to large-scale standard production equipment. For example, some ID card printer issuance Systems have a high-speed modular ID card production system that can be configured to produce a range of features on a secure ID card. Because of their high throughput and corresponding higher price, this type of ID card printing equipment is best suited for central or regional production centers. High-capacity production centers can alternatively be configured with numerous networked desktop ID card printers similar to those used in OTC printing environments. There is generally a trade-off between a lower initial capital investment and increased labor and control concerns.
E. Quality Control:
Quality control is a critical issue for the production of any secure documents. If sub-standard documents are distributed, it becomes easier for fraudsters to pass off reasonable counterfeit facsimiles of genuine ID cards as real. One of the primary benefits of an OTC approach is the ability to visually inspect every document produced. The challenge is assuring that the same quality standards are enforced uniformly at every issuing office. If any of the critical components (e.g. camera capture or ID card printer) begin to deviate from the initial configurations ID cards can be produced that meet most of the quality standards, but not all of them and therefore they will not be uniform in appearance. A key example is a variation in colors printed on an ID card. Quality control at a centralized production facility will always be easier to manage, as staff can be assigned specific quality control responsibilities. In some cases, specialized equipment can be utilized as well to automate the inspection process. The quality control process must assure consistency between documents produced at any location.
F. Program Security
An OTC approach creates significant management challenges with the need to assure that key elements of the program remain secure. Managing security across multiple locations will always be more complex and introduces more opportunities for security lapses or breaches. Each location needs to have security policies and procedures in place. Additional security issues tied to the OTC environment include:
• Administration of passwords or keys required to operate the equipment
• Protecting the ID card printers from unauthorized use during the day, and from theft or use when the
the office is closed (if removed from the office, the printer should not be able to produce legitimate
IDs without being re-installed by a government officer)
• Vault storage of blank ID cards and/or security laminates, and daily procedures for removing and
returning security supplies (enforcing dual-control procedures for activities such as vault access
maybe a management burden in small offices dealing with staff vacations and absences)
• Managing the application process to assure that all applicants are screened and authorized before
issuance of an ID card
• Tracking the daily usage of issued ID cards, and the storage of defective ones
• Controlled disposal of any supplies (e.g. printer ribbons) which may retain images of personal
data printed on issued IDs
Central Issuance requires the use of a secured facility. Administration of security policies and procedures will be simpler than in an OTC environment as the staff is all in a controlled facility. A security background check can be done for the staff requiring access to secured areas, and access can be managed through a visitor management access control system. All activities, equipment, and access points can be monitored, and security procedures customized to the facility and type of ID production chosen. The major security risks in a Central Issuance environment are related to internal fraud. Security is generally improved by limiting the number of times documents are handled, reducing potential points of compromise. In-line highly automated ID card printing personalization systems tend to provide greater control than document production processes that use multiple steps.
Summary
There are benefits and drawbacks to each ID card issuance approach covered in this paper. The security advantages of a Central Issuance system are significant and should be weighed strongly against any policy considerations which may favor an Over Counter approach. As an example, the EU Council and ICAO (International Civil Aviation Organization) both favor centralized production for high-security documents. To learn which ID card system will work best for your organization contact us to benefit from our 20+ years of expertise.
