Businesses are constantly exposed to fraudulent activities that cost massive financial losses. As enterprises grow over the years, fraudsters also seek opportunities with their security loopholes. By engineering sophisticated methods – criminals tend to gain ahead with their malicious activities. Oftentimes, these criminals skip right through the security system without alerting any suspicions. Because as the saying goes, “Black sheep is well-hidden among a white sheep flock”.
With old verification processes like 2Factor authentication or token verification – businesses can’t properly know who is who. For this reason, merchants require a multi-layered authentication process like identity document verification. It would help businesses to identify the real identities of their customers at the initial onboarding process. An automated document authentication tool requires address verification documents like passports, national identity cards, or driver’s licenses. The system automatically conducts document checks of various id documents and checks for any fraudulent attempts.
Assuming if a fraudster is using a stolen identity card to gain entry into the system – the multi-layered identity document verification process acts swiftly to conduct step-by-step verification. The system matches the information on the identification document with data stored in the large database. The database contains stored information on global documents to authenticate documents during a consumer onboarding process.
Compliance With KYC and AML Regulations
The identity document verification process helps companies to comply with KYC and AML regulations in their respective countries. Meeting these regulations is necessary for organizations to strengthen their brand reputation. Document of identity verification helps businesses to prevent fraud and ensure the confidence of customers in their services. Compared to manual verification, an automated identity document verification generates fewer errors or mistakes.
Because the manual verification process poses a significant challenge to various businesses – in terms of a high number of errors or mistakes. Therefore, an automated solution helps companies to streamline their processes and introduces efficiency at each verification step. It helps with meeting the KYC and AML regulations – as a solution analyses the information provided on an identity document. Ultimately, this ensures that the information appearing on the documents is correct. With this process, only legitimate people can get access to confidential information and organizations can avoid paying non-compliance fines or penalties.
Different Types of Document Authentication
There are various types of identity document verification that businesses use to confirm their client’s identity that helps them to meet KYC and AML procedures. It also helps companies to identify the clients for who they really are or even employees in some cases. Ultimately, the document verification process helps to prevent fraud and ensures stringent security over all kinds of services. It acts as multi-layered protection against any visible or non-visible threats from scammers.
The entire process requires minimum manual oversight to fight back fraudulent attempts. Here are few basic document verification types:
- Address Check
- Verification Proof of Service
- Biometric Authentication
- Document Check
- Employment Verification
- KYC and AML Background Screening
Businesses can save money by preventing frauds and meeting compliance by utilizing each verification procedure. However, most businesses still rely on document verification as a single solution that helps only with document checks. With an AI-powered multi-layered identity document verification solution – criminals are assessed in multiple ways to confirm their identity. Adopting this advanced document verification solution ensures that criminals can’t easily getaway. The solution is equipped with different verification services that businesses would require.
Now the question is, “Is address verification required along-with document verification?” The answer is, it’s simply because most government-issued documents are not current. Meaning, their address could change after a time. So conducting an address check is also quite important to authenticate documents.
How Does the System Conduct Document Verification?
So how can businesses verify the document? The entire identity document verification procedure is quite simple and easy – it consists mainly of a few basic steps.
- Customers have to submit relevant documents on the portal. The system asks consumers to upload photos or videos of their identity documents in high resolution.
- An AI algorithm integrated within the solution immediately scans the information that involves encrypted data. The system recognizes the provided information.
- The system automatically validates the data extracted from scanning. It helps organizations to confirm if the document and information are a match.
- In the next stage, the document conducts a robust verification process that checks for any signs of fraud, forgery, or alterations in the document like encrypting symbols, altering data, etc.
- Finally, clients are onboarded successfully as soon as the system verifies the submitted documents.
Nowadays, identity document verification holds great importance among businesses. The system provides high accuracy and significantly lowers any errors or mistakes. Ultimately, it prevents fraudsters from carrying out financial crime. This provides enterprises an opportunity to stop various threats or risks posed by criminals during an onboarding process.