Identity has been verified through documentation since the beginning of the business. But the regulations weren’t always as stringent as they are now. Clients must provide government-issued identification documents when opening a bank account, using onboarding platforms, or doing online shopping. But what is the guarantee that the documents given are genuine? If they aren’t, how can businesses identify these fake identity documents?
Companies can now verify documents to ensure that the customer they are onboarding is legitimate. In the past, manual verifiers filled this role, but online services have developed a more precise replacement. AI-powered digital document verification enables businesses to quickly and easily verify customers.
Significance of Verify Documents
The evolution of identity crimes occurs over time. Today’s most serious crimes include document fraud. Fraudsters use modified identity documents to commit serious crimes like corruption, border crossing, human trafficking, and money laundering. Identity documents include educational degrees, national ID cards, driving licenses, passports, and so on. Every year, many companies and individuals around the world lose billions of
dollars because of fake documents. The outdated standard procedures are ineffective in preventing document fraud today.
Customers want quick or real-time transactions, but financial institutions find it difficult to offer these on a widespread basis. Manually authenticating the identification documents usually necessitates a team of experts. This involves considerable effort and expense, and it also has the potential to fail. The online document verification system complies with artificial intelligence and deep learning, making it more accurate. Its automated nature eliminates the need to hire staff to verify documents, which makes it cost-effective.
Document Verification Company and Four Common Frauds
Digital document verification services employ AI, DL, and ML methods to instantly verify documents. These enable companies to both target legitimate customers and adhere to KYC/AML regulations.
Despite all of these advancements, fraudsters are getting more sophisticated and adding more odds along the way. They commit a variety of document frauds to bypass the verification process. However, encrypted technology is making progress in identifying and avoiding such scams. Some of the most common types are:
- Document Forgery
Forged documents are those that have minor or major alterations. In this kind of fraud, the perpetrators change the document’s personal information. Adding or removing watermarks, logos, stamps, holograms, deleting or adding pages, and changing signatures are a few examples. Fraudsters conceal their true identities by using forged documents. They can use AI-supported technologies to precisely detect such tampering.
- Empty Documents
Frauds involving blank documents are also frequent because scammers profit most from them. They fill out the necessary information and bypass the document check during the authentication process. Additionally, criminals search through the monogram and hologram checks using these papers. The manufacturing suppliers typically provide blank documents because they have the easiest access to them. On the other hand, companies can use digital document verification services to verify documents.
- Discreet Documents
Criminals fabricate fake profiles in the media much like they conceal identities in the real world. They conceal documents to show them. By doing this, they deceive and get past the authority’s validity checkpoints. Camouflaged documents are difficult to detect during manual verification, but thorough analysis improves the process’s accuracy levels.
- False documents
Bogues documents are exact replicas of authentic documents. Fraudsters use these to obtain medical services, deceive law enforcement, take control of someone’s bank accounts, and for a number of other purposes. Regulating bodies, the banking industry, the financial sector, and other businesses can use document verification solutions to secure the process.
Advantages – Verify Documents and Protect Business
Document verification methods are assisting industries in many ways, from avoiding scams to enhancing the customer experience. Here are some specific advantages that businesses can enjoy because of identity verification documents.
Reduces risk and Onboards Trustworthy Customers
It is more important than ever for businesses to verify documents online as they grow and change. Organizations do not want lengthy and error-prone processes.
Similar to this, speed and efficiency are crucial for enhancing the customer experience. Online document verification solutions also aid industries in reducing the dangers and chances of fraud while ensuring KYC compliance. These secure solutions produce fewer mistakes and offer notable accuracy.
Identifies and Stops Fraud:
Digital document verification is able to double-check customers’ identities without running the risk of misidentification. Cross-referencing them with the submitted documents also includes scanning any uploaded photos. The document won’t move forward in the process if there is even a remote possibility of forgery. The registration will soon be rejected. There are fewer chances that customers will have to wait a long time when using digital services because ML technology can process large amounts of data within seconds.
The digitally verify documents process performs background checks and verifies customers quickly to ensure authenticity. Technological advancements have also made fraudsters more powerful than ever. They can easily commit illegal activities like money laundering, identity theft, terrorist financing, and so on with no trace. As a result, businesses now have to develop strategies that go beyond checkpoints. AI-powered online document verification solutions are the answers to all these problems. They examine the data on the supplied documents to spot fraud immediately.