Document Verification – Advanced Approach Towards Identity Protection

Document Verification

Last Updated on March 23, 2024 by Saira Farman

Fraudsters can target corporates, hotels, eCommerce, and social media platforms as well as businesses. Businesses are required to verify customers’ identities before they provide any type of service. This is to help manage and prevent fraudsters. Businesses that comply with these regulatory obligations face many challenges, such as insufficient resources, customer experience, data security, and maintaining customer satisfaction. keeping in view the situation the online document verification tends to be an ideal solution for all the challenges. It allows businesses to meet regulatory obligations, and it also facilitates customer onboarding using efficient data security measures.

Automated document verification plays a vital role

Businesses are suffering from the increasing incidence of financial frauds. Financial regulators like FINTRAC, FATF and FATF have created KYC/AML laws to protect businesses’ interests and reduce the likelihood of criminal activity. Companies must add customer due diligence procedures to their systems under such compliances. This is done to verify and analyze customers’ identities and to also authenticate their documents. The know your customer process was traditionally done manually in all fintech institutions, which allowed fraudsters to continue their illegal activities. The technological boom has made it possible to fully automate KYC, providing seamless verification results. Companies can now verify the identity of customers through digital channels without the need for physical presence.

Online Document Verification Allows Businesses to Stop Fraud

Nearly everyone has experienced the moment of opening a bank or making an online transaction. Customers are asked to upload documents issued by the government, such as driving licences, passports, and identity cards. The officer used to verify identity documents. This matches the customer’s face with the photos in the identity documents, making it clear that the customer isn’t trying to trick the officer.

AI plays the role of verification officer, but with greater technological advances. The verification systems can verify the identity of customers without the need for physical presence. This allows users to instantly verify their identities and perform transactions remotely.

Fraudsters are becoming more proficient with the use of technology and bad intentions. Criminals can now create false documents in multiple ways and pretend to be someone else.

Online document authentication is a great way to identify false documents.

Types of Illicit Documents

Illegal documents

These documents are completely false and do not contain the essential features of government-issued documents, such as rainbow prints, templates, holograms, or other minor characteristics found on original identity documents.

False documents

These documents can’t be forged or altered, but they are authentic documents. These documents were stolen from victims or purchased from them. These documents can be used to bypass verification systems.

Documents altered

Fraudsters alter the original identity documents in ways that are not easily detected by the human eye. To manipulate the system, the criminals alter the information such as name and address. These documents can be easily detected by AI-based document verification tools.

Technology-based Document Verification: Benefits

Reduce Fraud

Cybercriminals are gaining access to every digital business. These cybercriminals are most often involved in frauds such as identity frauds, forging documents, and many other digital frauds. Online document verification reduces fraud risk. Customers upload their identity documents. OCR technology data was extracted for validation. These steps identify any signs of tempering and stop fraudsters before they can affect the system.

Increased Security Measures

Businesses employing document verification checks boost up security concerns. Businesses that allow customers to verify their identity documents remotely can use this solution. Document Verification Process helps to identify criminal activities and reduce risk.

Ultimate Business Protection

Online document verification services can be used by companies to protect their business interests. Businesses can protect their brand and reputation by identifying potential threats and stopping them. It also protected companies from heavy fines and permanent bans by the regulatory authorities.

Last Thoughts

It is clear that online businesses need to verify customer identity and provide document authentication. While digital businesses are expanding rapidly, the growing number of identity fraud and document fraud is threatening the business’ sustainability. The regulatory authorities require that the business incorporate. To ensure that customers are trustworthy and reliable, the Document Verification process is used.

Read More: Document Verification – For Frictionless Onboarding And Mitigating ID Scams