Technological innovation has facilitated businesses worldwide in terms of streamlining business operations but fraudsters always want to exploit corporations for instant rewards. According to a Federal Trade Commission report, around 2 million fraud reports were filed and customers lost around $3 billion, double the previous year. Enterprises want innovative digital solutions that can fight crime as well as facilitate compliance with KYC & AML regulations. The verification of documents can play an essential role in dealing with the above issues. Hence, companies can easily fight document fraud and avoid hefty fines from regulatory bodies.
Verification of Documents: A Quick Insight
A document verification procedure only accepts identity records such as a passport and national ID cards by government agencies. The authentication process considers records having genuine user photos so that in-depth record validation can occur and experts can effectively deal with the risk of fraud.
Significance of Verification of Documents
The following five points highlight the importance of applying record authentication solutions that help modern-day industries fight identity fraud and money laundering cases.
Modernising Identification
Manual identity verification procedures have become outdated in the modern corporate world because they are cumbersome and time-consuming. With the application of innovative digital solutions, intelligent procedures are time-saving and resource-effective.
Preventing Identity Theft
Online verification of documents facilitates businesses to protect their users’ credentials from unnecessary exploitation by cybercriminals and protect consumers’ sensitive data with unbeatable security.
Onboarding Customers Remotely
Remote authentication of user credentials with document authentication is a foolproof approach. This method incorporates intelligent digital solutions to confirm if the new client is a possible threat or a genuine customer.
Complying with KYC & AML Obligations
Verification of documents presents a solution to stick with Know Your Customers (KYC) & Anti Money Laundering (AML) standards which help mitigate potential fraud cases.
Age Authentication
Validating ID documents online can facilitate age-exclusive operators to guarantee that their users are above the appropriate age limit.
Complete Procedure Behind Verification of Documents
A record validation procedure comprises three basic stages that are below:
Uploading User Data
The verification of documents solution facilitates the user to provide an image of their official documents by screening it through webcam or smartphone camera. At the back-end office, the system receives input from the customer in the form of a photo of records. The customer also uploads a real-time selfie of the face for in-depth authentication of identity.
Evaluating Customers’ Credentials
The user documents go through several checks to confirm if the data is genuine & if the given records have forgeries or other manipulations. The image on the records and the selfie given by the client are cross-matched to validate the identity quickly.
Obtaining Final Verification Results
Upon successfully examining customer credentials, the client receives the final output in real time.
Components of Verification of Documents Services
The following are essential elements of record authentication services that help experts guarantee the authenticity of given records.
Ensuring Authenticity of Document
The document authenticity is determined by checking the records against a set of parameters such as:
- Holograms
- Rainbow prints
- MRZ code
- Crumpled document edges
- Forged information
Following is a listicle of records which are not authenticated in verification of documents solution:
Illegitimate Records
Such type of documentation is completely fake and not offered by any government bodies. So, given records do not have official stamps, holograms, or signatures.
False Documentation
These records belong to somebody else and cybercriminals steal them. Fraudsters can access the documents through official means and try to utilise the documents to fool the security protocols.
Modified Records
Such documents have legal status but criminals do extensive modification and photoshopping to achieve their goals. For example, cybercriminals change the DoB or address without approval from authorities.
Blank Stolen Documents
Authentic records have blank spaces. When criminals leak such documentation on digital platforms they become fraudulent. Hackers also fill in fake data to achieve their nefarious goals.
Counterfeit Documents
Counterfeit records are a replica of original documentation. Normally, criminals obtain a template and input fake data and images. Perpetrators can easily buy fraudulent information through illegal means and sell them on black market at high prices.
Imposter Records
Such type of documentation is genuine, but the real owner does not present the documents where required. This is where a criminal appears as an owner to fool the security protocols.
Concluding Remarks
Verification of documents can help modern-day industries fight identity fraud and money laundering cases actively. The application of cutting-edge solutions also helps companies comply with KYC AML regulations timely to avoid hefty fines. Working with a third-party vendor can offer verification of documents that is GDPR-compliant and ensure a positive user experience. Hence, implementing such innovative digital solutions can guarantee a competitive advantage in the market.