Identity thefts are becoming more widespread across online business and financial platforms. Statistics show that losses caused by identity thefts are expected to grow to $721.3 billion US dollars in 2021. With the lack of robust verification measures, the identities of users are at the risk of a data breach. On the other hand, artificial intelligence-based document verification mechanisms are becoming popular. Identity document verification services verify the customer by authenticating his ID documents. It empowers financial institutions to accurately verify customers at a large scale. While ensuring enhanced customer experience and securing the sensitive information of the customers.
What is Digital Document Verification?
Document verification is a process used to check the legitimacy of the documents. It validates the name, age, addresses details as well various document features that include holograms, stamps, and watermarks to ensure authenticity.
Digital Document Verification Process
The manual document verification process requires customers to visit financial institutes for their verification of ID documents. Security guards and bank employees carry out the manual verification of their customers. It is a difficult task as it requires plenty of time and effort from customers. With digital document verification, customers can verify their identity remotely by uploading their photos along with their ID documents while sending them through an online fax service on their smartphone or laptop. With this process, businesses can perform online transactions while verifying the end-user on the other side of the transaction. As fraudsters tend to use sophisticated methods to create counterfeit documents and steal the identity of others. It is important to implement robust document verification checks to detect and eliminate such frauds.
Following are the common types of document frauds that fraudsters use to fake their identities:
- False Documents
Illegitimate documents lack the properties of authentic documents that include fonts, stamps, and holograms present on the identity documents.
- Stolen Documents
Stolen or false documents are not tempered or modified. Fraudsters use stolen documents to trick the document verification process.
- Forged Documents
Original documents are modified to bypass the system. Modified documents are designed in such a way that is impossible for humans to detect any sign of forgery or change with the naked eye. But, a digital document verification solution detects even a minor change of a single-pixel in the ID documents to prevent suspicious attempts.
Advantages Of Using Document Verification
Document verification verifies the authenticity of the documents, prevents fraud, fulfills regulatory compliance, and enhances the customer experience. Following are the benefit of document verification:
- Speed And Convenience
Ease of use and speed are critical for providing clients a better customer experience. Manual document verification is a time-consuming and difficult process. With digital document verification, customers can verify their identity remotely by uploading their photos along with their ID documents while sending them through their smartphone or laptop.
- Onboard Authentic Customers And Prevent Risk
For the growth of the digital business, identity verification becomes more crucial for the business as well as the customers. Customers leave the process of online transactions due to ineffective security procedures. The ID document verification process minimizes business risks, builds confidence among customers, and aids in complying with regulatory requirements.
Identity document verification authenticates the unique information present on the ID document to confirm its validity while verifying the customer’s name against the ID documents and agreement. To ensure that authentic customers have the contract.
- Role Of Document Verification In Preventing Fraud
To deter rapidly growing cases of fraud, financial regulatory bodies such as FATF, FinCEN, and FINTRAC have initiated stringent KYC and AML regulations. Businesses must fulfill these regulations. These regulations require businesses to implement proper customer due diligence checks and verifying customer’s ID documents while eliminating fraud. This KYC procedure was done in the presence of customers at financial institutions such as banks or government offices. Thanks to artificial intelligence, the KYC process can be done remotely with the help of AI-powered identity verification solutions.
Banks, financial institutes, e-commerce businesses, and airports are using artificial intelligence base ID verification solutions to detect and eliminate multiple instances of fraud. It facilitates businesses to verify their customers and also helps them to fulfill the regulatory requirements of financial regulatory bodies. Digital document verification can easily differentiate between authentic and forged documents. It is more accurate and effective than manual document verification. Customers can easily verify themselves while remaining at their homes in real-time. Digital document verification software verifies documents of multiple formats and types across the world.