With the advancement of technology, companies validated their customers through face-to-face interactions or printed documents. The identifiers in this case were the person’s name, address, photo, and birthdate. However, as a result of globalization, fraudsters now have more opportunities than ever before. Manual inspection methods are fraught with human error, inconvenience, and delays. As a result, organizations are looking for sophisticated, encrypted solutions such as digital document verification. Analyze data to detect watermarks, holograms, and other changes. Companies using these services do not have to call their customers for a physical inspection. Paper photos from digital devices are good enough for selfies.
Online Document Verification Understanding of Screening Process
Artificial intelligence (AI)-based services built into the platforms are used to verify documents online. The system prompts users to upload images of their official identification documents in real time when they begin the onboarding process after registering. For visual identification, it is also necessary to take a selfie. Following submission, the OCR technology extracts data and performs verification scans. Document verification services retrieve results and display them to clients within a short period of time. It additionally keeps them in the back office. Therefore, a customer is onboarded or not, depending on whether the information is accurate and matches.
Identity-related documents used in this context include driver’s licenses, passports, ID cards, and statements from credit and debit cards. When documents are scanned, the system looks for signs of forgery or fraud and rejects the entry if it is found. Fraudsters employ a variety of these documents, including:
1. Stolen Documents
In order to commit crimes or commit fraud, people are not who they claim to be. They do not legitimately own fake documents. However, they create them in order to avoid identity checks.
2. Fake Documents
In addition to being entirely fake, these lack distinguishing features like holograms, watermarks, stamps, and signatures.
3. Modified Documents
To make fake documents appear real, criminals alter original paperwork in some ways. They either alter the writing style, font, or alphabet in the name, birthdate, or both. They are able to bypass the verification process in this way.
Effective Document Verification Solutions and Their Advantages
Businesses can improve customer satisfaction, avoid fraud, and meet regulatory requirements by authenticating documents. AI-based technologies offer businesses a number of advantages. As a result, since the services don’t take very long to verify the customers, frequent attacks and breaches won’t be a big problem. Here are some illustrations of how digital identity verification benefits commerce.
Enhanced Customers Experience
PWC research shows that customers are more attracted to features such as fast and easy processes. Otherwise, the client ends the process. Manual testing is a tedious process with multiple risks, mainly due to human error. In contrast, online document verification systems speed up the onboarding process as well as fast and seamless matching. Identification, a driver’s license, a passport, and proof of address are necessary documents. Customers can easily download directly to the website through their devices.
Ensured KYC/AML Compliance
Businesses can onboard remote customers by verifying digital documents. They are unable to overturn KYC/AML regulations. Artificial intelligence-based services have made compliance with regulations easier to maintain while also guaranteeing the onboarding of actual customers.
Tackles Fake Documents
Utilizing OCR technology, verification solutions extract data that is subsequently cross-referenced with data from the database. The system additionally recognizes any document tampering. It weakens the fight against forged identification documents.
Real Customers Onboarding with Reduced Risk
Businesses are expanding as a result of digitization; as a result, they require solid solutions to support onboarding. However, manual verification had a number of drawbacks, including a lengthy procedure, human error, and less accurate identification. The lack of transparency also increases the likelihood that customers will give up on the procedure. On the other hand, digital document verification guarantees data security and privacy. Additionally, it reduces fraud and improves customer experience.
Removes Geographical Barriers and Restrictions
Increasing customer traffic is a company’s top priority. The document verification solution has removed geographical barriers. For example, the e-commerce industry is spreading its wings to serve global customers. Hence, online document verification is a reliable solution for compliant and accurate customer service.
Digital document verification works behind the scenes. Documents are uploaded by customers, data is extracted by OCR, and identity is confirmed by technology. It analyzes the information to determine whether the document is forged or not. Finance and banking, e-commerce, and more. It is an industry that is more exposed to risks. However, digital solutions are focused on promoting truly inclusive processes and spurring expansion.