How to Spot Fake ‘Identity Resolution’ Providers Who Are Just Selling You Bad Data

Not All Identity Resolution Is Created Equal

Businesses invest in identity resolution to clean up their data, eliminate duplicates, and create accurate customer profiles. But what happens when the provider you trust is just repackaging bad data and calling it ‘identity resolution’?

The truth is, not all identity resolution providers actually resolve identities. Some simply pull in third-party data, apply basic matching rules, and sell you a dataset that’s just as inaccurate, fragmented, and outdated as before.

Here’s how to spot the frauds before they waste your money—and what to look for in a real identity resolution solution.

1. They Rely Heavily on Third-Party Data

🚩 Warning Signs:
❌ Their data comes from unknown or unverified third-party sources.
❌ They can’t explain how they resolve identities—just that they "have the data."
❌ They promise instant access to millions of records without explaining how they verify accuracy.

What Real Identity Resolution Looks Like:
✔ Uses first-party data as the foundation, with third-party data as a supplement—not the core.
✔ Ensures data is collected ethically, with consent and compliance in mind.
✔ Provides clear matching methodologies instead of just selling raw data dumps.

2. They Overpromise on Match Accuracy Without Proof

🚩 Warning Signs:
❌ They claim 100% accuracy in identity resolution (impossible).
❌ They can’t provide detailed reports showing how they match and verify identities.
❌ Their system generates false matches—merging two different people just because they share a similar name.

What Real Identity Resolution Looks Like:
✔ Uses deterministic matching (exact data like email, phone, or account ID) and probabilistic matching (AI-driven behavioral patterns).
✔ Provides transparency in match confidence levels—so you know what’s high, medium, or low certainty.
✔ Allows for customizable matching rules so businesses can fine-tune their accuracy.

3. Their Data Is Outdated or Stagnant

🚩 Warning Signs:
❌ You receive data that’s full of dead emails, old phone numbers, or outdated job titles.
❌ Their identity resolution system doesn’t update profiles dynamically—it’s just a static database.
❌ They don’t use AI or machine learning to keep records current.

What Real Identity Resolution Looks Like:
✔ Continuously updates profiles as customers engage across different touchpoints.
✔ Uses real-time data ingestion to merge new interactions into existing profiles.
✔ Ensures businesses don’t rely on outdated records for decision-making.

4. They Claim to ‘Resolve’ Identities, But Really Just Sell You More Leads

🚩 Warning Signs:
❌ They market themselves as an identity resolution provider, but all they really do is sell bulk contact lists.
❌ Their pitch sounds more like a lead database than an actual data unification solution.
❌ Their "identity resolution" is just matching emails to LinkedIn profiles—not actual cross-platform identity tracking.

What Real Identity Resolution Looks Like:
✔ Focuses on unifying customer data across your own ecosystem—not just selling new contacts.
✔ Improves the quality and accuracy of existing data instead of pushing low-quality leads.
✔ Helps businesses reduce duplicate records, clean up CRM data, and track customer journeys effectively.

5. They Ignore Compliance & Privacy Laws

🚩 Warning Signs:
❌ They don’t address GDPR, CCPA, or other data privacy regulations.
❌ They won’t tell you where their data comes from or whether customers opted in.
❌ Their platform doesn’t allow businesses to track consent or opt-outs properly.

What Real Identity Resolution Looks Like:
✔ Ensures all data is ethically sourced and privacy-compliant.
✔ Provides tools to manage consent and honor customer preferences.
✔ Helps businesses reduce regulatory risk instead of increasing it.

How to Choose a Real Identity Resolution Provider

If you’re evaluating an identity resolution solution, ask these critical questions:

1️⃣ Where does your data come from? (First-party? Third-party? Both? How is it verified?)
2️⃣ How do you match identities? (Deterministic? Probabilistic? AI-powered?)
3️⃣ How often is the data updated? (Real-time? Batch processing? Static?)
4️⃣ Do you comply with privacy laws? (GDPR, CCPA, and beyond?)
5️⃣ Can you provide proof of accuracy? (Match reports, case studies, confidence scores?)

The Future of Identity Resolution: AI, Real-Time Data, and Privacy Compliance

🔮 AI-powered matching will replace basic, rule-based identity resolution.
🔮 Businesses will move toward privacy-first identity strategies, reducing reliance on shady third-party data.
🔮 Real-time identity resolution will become the norm, ensuring customer profiles are always accurate and evolving.

Want to See Real Identity Resolution in Action?

If you’re tired of fake ‘identity resolution’ providers selling bad data, it’s time to use a solution that actually works.

View the Identity Resolution Slide Deck to see how it works. If you’re ready to start using identity resolution the right way, you can purchase it here.

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