As digitization is taking over all over the world, the community is being threatened by scammers, fraudsters, and identity thieves. Every industry is under the target of these people. Most businesses face major difficulties due to the prevailing issues of digital fraud and theft. According to research, more than 45% of businesses have suffered the consequences of digital fraud. To protect themselves from attacks and breaches, organizations utilize the method of online verification of documents.
Document Verification Process
As discussed above, fraudsters always tend to steal organizational resources using new techniques of digital data hijacking. Many firms fall victim to document fraud when onboarding new clients. The online verification of documents allows companies to use digital methods of verifying papers online. Document verification service protects businesses from wrong entries thus preventing cyber-attacks and data breaches.
The documentation verification procedure takes multiple papers for evaluating the authenticity of the customer. Most online verification systems accept multiple government-issued certificates to check using modern tech systems.
The identity card is the main credential that proves the customer’s identity. Modern-day ID cards carry biometric chips that contain complete user information. Businesses evaluate the required data for verifying documents such as complete name, date of birth, client’s address, and other personal fields.
Passports also deliver the required identity information. Many organizations evaluate customer passports when verifying their identities. The process of online verification of documents uses artificial intelligence and machine learning to verify user data from passports and other documents.
Licenses such as driving licenses are also inputted for online verification of documents. It carries complete user data from name to address of residence which gets evaluation from online systems.
How do Businesses perform Online Verification of Documents?
The document verification process is an integral operation in the identity verification cycle. It has become a useful tool in the recent environment of remote work, especially after the period of the pandemic.
The first process of online verification of documents is paper evaluation using digital tools. Clients upload documents onto the system for verification. Modern-day systems perform digital evaluation checks using artificial intelligence. As the customer identities are digital copies, they can be manipulated using different online tools. In the initial stage, documents undergo comparison to check for fake papers and manipulations. The process of online verification of documents uses AI for checking the papers with thousands of pre-added document templates. It eliminates the chances of fake documents and ensures that the right license is uploaded.
Using OCR for Verification
After evaluating the documents in the right format and forgery checks. OCR (Optical Character Recognition) technology comes into action. It performs in-depth data extraction for verification of the client’s authenticity. In the online verification of documents process, OCR gathers all the data which is then further processed under the client’s onboarding data.
Online Verification of Documents – Role in Compliance
Every business follows compliance regulations to operate in the industry. In the recent development in online systems, remote onboarding and verifying proofs of identity digitally are becoming more consistent among businesses. There are multiple laws that are in place for the prevention of financial terrorism and money laundering via digital channels.
KYC (Know Your Customer)
Know Your Customer is the main operation in place for every business to verify the authenticity of their customers. It refers to the operation of evaluating a customer’s identity through online verification of documents and biometric recognition. It determines a good fit for organizations and enables businesses to make the right decisions. KYC finds out the real identity of the client by verifying all the important aspects of previous customer records and activities of the customer. Any illegal activity or past record of the client will cause the failure of KYC compliance.
AML (Anti Money Laundering)
AML is global compliance in place for businesses to prevent the illicit transfer of money for illegal means and terrorist financing through digital routes. It works in conjunction with the AML/KYC checks and evaluates the means of the client’s financial activity. The AML checks mark the completion of several identity verification processes such as the online verification of documents.
Wrapping it Up
In the digital world, most industries make use of online processes to evaluate the identities of their customers. It is important to evaluate the user’s credentials remotely as it is fast and much more accurate as compared to traditional methods. The process of online verification of documents is used by firms to verify paperwork and prevent document fraud. Specialized software such as document checker online evaluates user identities flawlessly.