The process of verification is one that has been used for ages, and it refers to the proof of existence or the truth of something. Online platforms, just like offline spaces, are not secure when it comes to identity fraud. There are around 7.6 billion people in the world who all have their own unique identities, and differentiating between them is necessary for smooth operations in all organizations.
The document verification process is the basic way of authenticating identity and this procedure has been implemented for ages. Now though, there are quicker, secure, and efficient online document verification solutions.
Importance of Document Verification Process
Advancement in technology and constant digitization of processes provide a great future for the world. However, criminals have also been polishing their skills, so their techniques and latest scams are difficult to identify. For this reason, banks, government departments, hospitals, and fintech companies all need to incorporate document authentication in their systems.
Types of fake Documents
01: Illegal Documents
Identity documents that are tampered, and those that are completely made from scratch in order to be used illegally are one of the types of fake documents. These documents can be distinguished by checking the details of holographic patterns and by matching the shades of ink used with legal documents of the same sort.
02: False Documents
Documents that are original but belong to another person are false documents. Such documents are commonly used for identity fraud and even financial crimes.
03: Fake Documents
Documents created from scratch with the intention of crimes are fake documents. These do not belong to the actual person. Fraudsters purposely make such documents to manipulate systems and successfully carry out their intended criminal activities.
The document validation process allows businesses to authenticate documents by identifying and matching various characteristics such as the MRZ code. The validity of documents with folded sides or torn edges, detection of the use of photoshop, identification of special ink, and microprint document validation are also part of this procedure.
KYC Services – Top Notch Security for Business
One of the use cases of online document verification, KYC services have become an essential part of all financial institutions. The processes involved in KYC range from simply examining selfies of customers, to complete AML screening which gathers data from global watchlists and checks records of financial crimes.
Customer Identification is done using biometrics and AI technology to cross-check facial data from selfies against records in the database. If the person is determined to be who they claim to be, the next step is to check the history of their accounts and the transactions for any inconsistencies.
Using the process of CDD (Customer due diligence), customers’ records are analyzed to find political connections, and history of terrorist financing, money laundering, etc. If a potential customer appears to be a high-risk case, i.e, an enhanced due diligence procedure is applied to ask for more information and perform an extensive examination of the customers’ data.
How Effective is Online Document Verification
Digital document verification can distinguish between what’s real and what’s fake. In other words, it can differentiate between an original document and one that is tampered with. The verification process is very accurate and gives the facility to verify documents from various countries around the globe. In many cases, the ID documents have 2 languages, usually English and the native language.
Criminals also have good opportunities in the digital space as they use their own AI techniques to make fake documents look real. Since every department is making its system digital in order to cope with the rest of the world, the efficiency of online document verification is crucial.
Online document verification is used to onboard real customers and to reduce the fraud associated with the use of fake documents. These services provide accuracy and convenience to the customers, as well as saving time and money. These processes, with their regular improvements, have made onboarding experiences for users much smoother. Enhancements in these processes have made the user experience better.
In conclusion, online document verification incorporating AI and ML has proved to be quite efficient in overcoming identity frauds. It’s not possible to completely end cybercrime, but as criminals become smarter, the systems that are used to overcome the need to stay a step ahead.