Businesses, airports, banks, and all the other corporate sectors are required to verify their customers in order to facilitate them with the best possible experience and to stay compliant with regulations. Fulfilling all these regulations is not easy all the time. Customer issues, lack of proper resources, and data security are the common hurdles for businesses to stay compliant with the given laws. However, document verification seems to be a relatively easy verification process fulfilling companies’ needs of providing their users a seamless exposure by accomplishing robust data security techniques.
Document Verification: Why It Is Needed?
False personation is the crime of using a fake or synthetic identity in order to cause harm to other people. Cybercriminals have come up with a lot of sophisticated ways to acquire fake identities. It can be as easy as creating a screen name of someone else and then posting or commenting on social sites on victims’ behalf. Most of the time it has been seen that perpetrators involved in such activities destroy the other persons’ reputation.
It is prohibited to steal someone else’s identity to carry out illegal actions. In 1998, Congress passed the Identity Theft And Assumption Deterrence Act. The law reflected the idea that it is illegal to obtain synthetic identity with the purpose of using that fake identity with the intent to commit frauds that constitute a violation of laws. Document authentication is an effective way to exercise this law.
The rate of crimes is touching the skies with each passing day. According to the Federal Trade Commission, almost 1.8 million cases of fraud took place in the year 2018 and the number is expected to double by the end of 2024.
Role Of Document Authentication Services In Minimizing Fraud
Several regulatory authorities like FINTRAC and FATF have designed strict laws for businesses to reduce fraudulent attacks. They have set up AML and KYC laws and made it mandatory for businesses to adhere to them. These are the processes of performing Customer Due Diligence (CDD). Identity document verification is the process that helps businesses achieve this goal.
Before technology became a part of our lives, businesses used to perform verification checks manually. But thanks to these AI-powered document verification solutions, now companies can verify their consumers conveniently. It has become easy for businesses to operate on mobile phones and computers.
Process Of Document Authentication From Scanning To Verification
AI-supported software is installed into the websites of digital businesses. It is a very simple task that starts when companies have to enroll customers. At the time of registration, when customers try to onboard themselves on the platform, the software asks customers to submit pictures of their identity documents. The software then authenticates documents in real-time by extracting information using the optical character recognition technology. If the data provided is correct, the customer would be allowed to access the platform.
Documents To Be Verified
Government-issued ID documents are considered worthy worldwide. No one can deny their value. Therefore, document authentication requires these documents to verify the identity of customers. Following types of global documents are used in the identity document verification services:
- ID cards
- Driving Licenses
- Passports
- Credit/ Debit cards
Document Frauds
Some criminals use the following fraudulent documents to damage businesses by their presence:
1. False Documents
These types of documents are genuine, they possess no issue in themselves. But the problem is, they are not in the hands of their legitimate owners. Fraudsters steal someones’ original documents and try to use them in their favor. Document validation services easily catch the bad actors who came up with other persons’ documents.
2. Illegitimate Documents
The other type of fake document that online document authentication detects is the illegitimate documents. They have falsely created documents that lack the characteristics of original documents. The absence of holograms, specific usage of ink, etc. causes illegitimate documents to get declined in the document check.
3. Modified Documents
As the name indicates, perpetrators try to modify or alter the original documents. They try to fake the font and writing style to fool the document authentication services.
Efficacy Of Document Authentication
AI-powered verification of documents is the ultimate solution to verify customers based on their documents. It gives customers a choice to authenticate documents from the comfort of their homes. Automated document authentication reduces human intervention in the process thus adding in the authentication of results.
Summing It Up
Identification of customers has become a dire need of businesses nowadays. Refinement in technology also provided a chance for criminals to spoof the system with their illicit activities. Considering the cases, regulatory authorities have developed several verification checks like document authentication to make businesses stay compliant with laws.
