Why Identity Verification Matters More Than Ever

Most people don't think much about identity verification until they're asked to provide a passport, driver's licence, or complete an electronic verification check.

A common question we hear is:

"Why does my lawyer need all this information?"

The answer is simple: protecting clients.

Identity theft, impersonation scams and cyber fraud continue to become more sophisticated. Unfortunately, legal professionals, banks and other trusted advisers regularly see attempts by criminals to access funds, property and sensitive information that doesn't belong to them.

That is why strong identity verification is so important.

In July 2026, New Zealand introduced the new Identity Verification Code of Practice 2026 (IVCOP 2026). The updated Code modernises identity verification and reflects the way people do business today, including greater use of electronic verification and digital identity solutions.

Importantly, the changes are not about creating more red tape.

They are about ensuring businesses have effective and practical ways to confirm that the person they are dealing with is genuinely who they claim to be. The updated Code also provides more flexibility in how identity can be verified while maintaining strong standards.

At Neilsons Lawyers, one of the key messages from our recent AML/CFT training was that identity verification is about more than simply collecting identification documents.

The real question is:

How do we know the person standing in front of us, or sitting behind a computer screen, is actually the holder of that identity?

That extra layer of verification helps protect:

• Clients purchasing or selling property

• Families dealing with estates and inheritances

• Businesses transferring funds

• Vulnerable individuals who may be targeted by fraudsters

• The wider financial and legal systems we all rely on

While these checks can sometimes feel inconvenient, they exist for a very good reason.

Every successful fraud prevented is a client protected.

As technology continues to evolve, so do the methods used by criminals. The legal profession must continue to adapt while maintaining the trust that sits at the centre of every client relationship.

The introduction of IVCOP 2026 is a timely reminder that effective identity verification is not just about compliance.

It's about making sure the right people are making the right decisions about the right assets.