With the progress in technology, data breaches and identity theft has become a major concern of industries and their clients. As businesses and organizations look for genuine ways to avoid scams, notably as data breaches are becoming more widespread; one approach that has proven successful is digital KYC documents verification services to authenticate individual identities.
Potential clients can verify their information online instead of visiting the office to get their identity authenticated. It assists any business in meeting legal obligations like anti-money laundering and counter-terrorism funding. Undoubtedly, KYC compliance has made the identification process of customers easier for businesses.
Identity Verification vs Identity Authentication
Identity verification is done either by physically presenting a driving license or by filling out the application form with personal information like the name, address of the client, and social security number.
If verification documents are given in person, they are physically verified, and when given online, they are cross-checked against an official database. This method has been widely adopted for some years because it has proven to be efficient in countering a variety of scams.
Fraudsters now also have access to digital services that lets them easily create fake IDs which appear exactly like the real thing. In addition, data breaches have made it incredibly easy for cybercriminals to get personal details and trick the anti-fraud program.
Identity verification is extremely effective at preventing crime in online payments. KBA is used to not only offer important information for evidence of identification but also to pose questions that only a real person can answer.
Out-of-wallet inquiries demand information that is not found on identity documents, like the names of one’s family members, prior loan payments, employment, or residential addresses. Although this additional layer provides more security for companies and clients, it is also becoming more prone to phishing scams, as the IRS data hack proved.
Process of Online Document Verification
Users whose documents need to be verified are asked to hold their identity documents in the camera so that the required information can be examined. The software analyzes the photo as quickly as it is delivered in order to verify documents online. In some situations, the document experts verify the image manually to detect fraud. The individual could also provide a recently captured photo of their face, which can be matched to the photo on the document. That’s how firms may e-verify documents and check if they’re genuine or not.
Benefits of Documents Verification in Bank and Other Sectors
In today’s modern world, where document forgery has been so common, document screenings are a method for recognizing and countering all types of fraudsters. Here are a few cases of how companies are using electronic document verification to keep crooks at bay.
Quick Turnaround Time
Despite the reality that businesses can drop off or email their identification documents, but need to wait for their validity to be checked physically, online document checking solutions can instantaneously validate the legality of identity documents sent electronically.
Easy to Use
Due to enhanced verification solutions, education documents verification or any other related files can be validated easily by presenting a digital snapshot of the documents like a passport, ID card, or driver’s license as a piece of evidence. It can be conducted in person using a webcam or virtually using a phone photo.
Disadvantages of Document verification
The following are some of the disadvantages of digital document verification:
Does not Verify Identity Information
Document verification solutions solely examine the authenticity of one person’s documents. Because vital identity information like a user’s full name, residential address, as well as date of birth, isn’t verified, it’s feasible that somebody with fake identity evidence could get through the documents verify, which simply verifies them.
Not Always Reliable
Without any doubt, document verification is an excellent approach to prevent scams, however, it’s not perfect. With the advancement of technology, document fraud methods are becoming more complex. As a result, fraudsters are becoming increasingly smart and capable of misleading even the most experienced border officers. The KYC verification system essentially checks if the document is genuine or fake.
Final Thoughts
While companies have been transitioning to digital for a certain time, the global epidemic has hastened the process. Businesses normally follow regulations to reduce the risk of identity theft and fraudulent transactions, but this results in complex processes that turn off customers.
Checking documents without affecting customer satisfaction is crucial. The greatest approach for achieving this is to use AI-based KYC documents verification tools. It eliminates the need for a huge team to secure the firm from identity theft. Thus, it is correct to say that artificial intelligence-powered document verification solutions are the best option in this digital world.
