Document Verification Against Identity Frauds and Financial Crimes

Document Verification Against Identity Frauds and Financial Crimes

Businesses are striving to find a process that can verify the identity of their customers. Their primary requirement is a remote process with the minimal manual intrusion.

Because they have to meet a customer physically and check his documents before giving him any services.

But the digital transformation has forced businesses to onboard customers digitally through online mediums, online bank account opening is an example.

The ultimate solution to their problems is document verification.

Document Verification

It is a process of confirming the authenticity of a document and then validating that this document belongs to the same person who declares its ownership.

Why Documents Issued by Government are Used?

Government-issued documents having a photo ID are entrusted for ID verification. The reason is a government authority issues an ID document after physical meetings, thorough checking, and family history analysis.

The name, date of birth, and photo ID on these documents are accurate and authentic.

Online Method without any Manual Intrusion

This is a completely automated and robust method conducted by artificially intelligent software. The customer can undergo document validation through a mobile phone or PC, there is no need for special equipment for this. 

The customer just has to upload the image of his ID document. The software will check the authenticity of the document by examining the originality traits like holograms, signs, stamps, and rainbow marks.

Is There Any Need for Identity Document Verification?

Identity fraud and fake personification are becoming more common nowadays. With the rise in internet penetration, the personal data of users is not secure.

This data can be easily available at cheap prices on the dark web. Using this data, a fraudster can disguise himself as another person. He can create online accounts on another person’s name and photo. 

Considering these types of identity frauds, document attestation is becoming inevitable for financial institutions. They are at the foremost target of identity crimes.

The motive behind every fraud is financial benefits and financial businesses are the best choice for this. 

Also, global law enforcement authorities have mandated Monterey businesses to adopt KYC (know your customer) and document verification procedures to keep criminals miles away.

Which Documents are Rejected?

Fraudsters try to deceive the system by uploading tempered and fake documents to the verification software, the software rejects all these attempts.

Below are some documents that are not accepted in document verification:

  • False Documents:

These documents are original but belong to someone else, fraudsters physically steal these documents or take an image of them.

Identity theft is executed in this case because someone else’s personal information is illegally used. 

  • Modified Documents:

The documents that are altered or tempered by scammers are called modified documents. They may change font size, format, or alter the data of documents like DOB or address.

The real owner of the document sometimes uses these documents. For example, getting early age benefits or pension funds by changing the birthdate on the document.

  • Illegitimate Documents:

These documents are completely fake and do not have any authenticity marks. These are made using photoshop software, fraudsters try to make a copy of the original documents. 

Benefits of Document Verification Process

  • Quick Customer Onboarding:

The process is not complex or complicated, the customer does not have to undergo unnecessary checks or steps. Because of this, it has a low rate of drop-offs. 

  • Accurate Information:

Sometimes customers unintentionally give their inaccurate information while creating an account like a misspelled name or wrong address data.

As the information is extracted from documents, it is accurate and reliable with zero errors.

  • Fraud Mitigation:

With only legitimate customers on their platforms, businesses can build strong mitigation against frauds and financial crimes.

In a Nutshell!

Businesses should go for document authentication, it will give security to their customers’ data and funds. Also, they can comply with the global KYC restrictions. Document authentication is a part of the video KYC process. Therefore, financial institutions are required to verify the identity of their customers by a process named KYC (know your customer).  

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