When fraudsters deceive the company system, fool users on digital platforms to give personal information, identity fraud can happen. As stated by the Financial Trade Corporation, identity fraud cases have increased two-fold in 2019 which amounted to 65,200.
Regulatory authorities and company organizations are making all attempts to try and reduce this scam. One tried and experimented with the technique of limiting this threat through document verification solutions. To give more ease, transparency, safety, artificial intelligence-powered document verification solutions are being adopted.
The Need for Document Verification
The document verification solution is presently an exceptional strategy for the detection of con-artists and fraudsters. Imagine you visit a bank physically to apply for an installment or open a new account. One will be acquired to give legitimate identity documents such as an identity document card or driving license for document verification solutions. This procedure is vital as it authenticates the legitimate identity of people adopting legitimate documents. In case a fraudster gives forged documents to commit an offense, the document verification solution involves fake chargebacks, insurance claims, medical insurance, as well as main crimes such as malicious activities.
What Occurs During Document Verification Solution?
The document verification procedure is usually performed by monetary institutions digitally, For online document check, listed below are the steps:
1. Capture: The client is asked to take a photo or upload a picture of their legitimate identity document.
2. Extract: artificial intelligence document verification procedure extract the information through a digitized procedure adopting OCR technology.
3. Screening: The document information is authenticated and cross-checked with the data by the client.
An adding point of authenticating identity documents online is that forged documents and illicit users are detected. In particular, three sorts of fake documents are recognized. These involve:
- Illegitimate Documents:
These are forged documents that have not been approved by any government agency and are in fact developed by the criminal to deceive the security software. This can involve a document with a missing rainbow print, regulatory stamp, or hologram, etc.
- Fake Documents
These documents are stolen documents of genuine users. By adding false information to genuine user data, criminals use such documents to commit synthetic identity theft. As a consequence, companies find it hard to distinguish between real and false data, unless they adopt artificial intelligence modules to find unusual documents.
- Modified Documents
These documents have some altered data in them for example, a false expiry date, incorrect residence data, false father’s name, etc.
Document Verification Solutions- Assisting Companies Spot Criminals
To limit the increasing problem of malicious activities, identity fraud, and ATOs, regulatory authorities have proposed authentic companies follow and know your customer and anti-money laundering laws. These laws involve measures of what companies must do to keep criminals and con artists at stake. Through digitizing your customer procedure, the risk of monetary fraud can be significantly reduced. Authenticating the fraud-related documents through digitized document authentication not only minimizes the expense but increases profits by adding user retention rates.
Allowing Companies to Become More Profitable
After a one-time investment in a document verification solution, provided by ID document service providers, several companies are able to adopt a user-centric and cost-efficient strategy. Real-world examples of document verification solution involve:
- Authenticating an ID card at a museum.
- Authenticating bank statements, rent negotiations, registration applications, and debit/credit cards in the banking sector.
- Validating student identities online through school-approved identity document cards.
- Digitized authentication of visas digitally by the travel sector.
- Authentication of transaction cards by e-commerce stores.
- Recognition of freelancers prior to performing transactions.
- Patient IDV prior to administering medicines, surgeries, and operations.
Nearly every monetary institution and health sector have invested in online document verification with the main aim being fraud detection and risk mitigation. From performing online payment safely to give ease to users through digitization, the advantages of this technology are countless. Finally, with the world being digital, document verification solutions must be adopted for protecting digital platforms and systems. Not being able to comply with this can result in time-taking for both users and companies themselves.