The technological evolution has reshaped businesses. Online businesses, banks, hotels, airports, social media site e-commerce platforms require customer identification to prevent the risks of identity and financial fraud as well as to fulfill the regulations. Coping with these regulations is mandatory but sometimes it gets problematic for the businesses to drive them due to the insufficient resources, customer experience, and data security concerns. Therefore, online document verification is an ideal solution for these problems. With document verification solutions, the regulatory requirements can be fulfilled and provides a protected and seamless customer experience.

The Need Of Document Verification

Identity theft is the crime in which the fraudster uses false or synthetic identities in order to put other people into alarming situations. The technology boom has come up with both good and bad opportunities. By using technology, cybercriminals have figured out numerous ways to acquire fake identities. It’s quite an easy task to abduct the identity of someone else to run fraudulent activities such as posting harmful content or commenting badly over social media. In every case, it’s been recorded that the victims’ reputation is destroyed.

By law, it’s illegal to steal someone else’s identity to run illicit activities for their own welfare. Spotlighting on Identity Theft And Assumption Deterrence Act 1998, it was stated that it is a violation of the law if someone tries to commit any kind of fraud using a false identity. Businesses by employing document verification services can effectively exercise this law.

The Role Of Document Authentication In Mitigating Identity Fraud

Multiple fintech regulators such as FATF, and FINTRAC have established KYC and AML compliance in order to prevent the occurrence of cybercrimes. These regulations provide a set of instructions to the businesses to conduct their work processes in the most effective way. Identity document verification helps businesses to identify the real identities of the customers and also authenticates the identity before getting them on board. This deters the risk of scams and frauds. Customer due diligence process is done traditionally in most of the fintech businesses which is not so effective. However, the artificial intelligence-based online document authentication SaaS products are beneficial for the business that ensures seamless customer onboarding and prevents document frauds.

Types Of Fraudulent Document 

False Documents

These documents are original and don't possess any kind of issue within them. But such documents are not in the hands of the legit document owners. The fraudsters steal the original document belonging to someone else and use it for their own personal gains. The culprits are easily identified with the documents validation services.

Modified Documents

These are genuine documents but are slightly edited just to trick the verification officer. Mostly the fraudsters alter the document in a way so it's become quite difficult for the human to notice any kind of modifications. AI-based documents check can efficiently validate any kind of tempering in the documents through verifying the fonts and alteration in the pixels.

Illicit Documents

These types of documents are replicas of the original government-issued identity documents also referred to as false documents. Such documents lack the minor characteristics of genuine documents like holograms, special ink, etc. Document Attestation plays a viable role in detecting such types of documents.

Benefits of AI-based Document Verification 

Risk Reduction And Seamless Customer Onboarding

Online businesses are rapidly growing and tend to interact with a massive number of customers on a daily basis. Verifying their identities and authentication of the documents is important for the businesses to sustain as well as to provide the customers a safe environment. The global fraud report states that the insufficient security process in digital business is the major reason behind customers not finding online platforms as trustworthy and also fears to perform online transactions. Thus, the dDocument vVerification pProcess reduces such risk and increases customer confidence. AI-enhanced automated document verification helps out the business by entering the real identities of the customers before onboarding them as well as authenticating their documents through various document checks.

Increases The Customer Convenience 

For businesses, speed and convenience are the basic customers’ requirements that they have to fulfill. The traditional way of document verification lacked speed and customers didn’t find such practice convenient. However, artificial intelligence-powered document verification is quite fast and customer-friendly. The customers can remotely verify their identity by simply uploading scanned copies or photos of the identity documents.

Endnotes

Verifying documents to determine the real identities of the customer is the business requirement nowadays. Online document verification is the perfect solution in the markets through which the businesses can fulfill the regulatory requirements as well as make them self-sufficient in combating identity and document frauds. Businesses are obliged to employ document verification services within their system in order to maximize the customers’ experience as well as for their own growth.