The increasing number of ID frauds compelled businesses to incorporate robust KYC compliance in their system. Businesses need ID verification services to confirm the identity of end-users to perform KYC compliance. According to a report, Americans lost $712.4 billion in 2020 due to identity theft, and ID fraud losses are expected to cost more in 2021.
Due to the increase in online identity thefts, digital ID verification services are also becoming popular among businesses. Document verification is an essential process to do any legal task. We have to verify our documents before opening a bank account, before going outside the country, or anywhere before onboarding. Carrying personal ID documents is a bit insecure as there is a chance of losing them during the journey. That’s why customers demand an online ID verification solution to verify their identity that eliminates the need of taking ID documents with them. Online document verification seems to be the best verification solution to confirm the identity of the customers.
How E-document Verification Streamlined The Onboarding Process?
Manual verification of documents is a time taking process and needs more resources. Digital document verification allows businesses for remote customer onboarding within seconds. In document verification, the identity of the user is verified by matching his provided documents. It supports multiple documents in different languages to facilitate businesses all over the world. The verification process is completed in a matter of seconds to gain customers’ attraction. To confirm the identity, an ID document is required that should be government-issued. Let’s see how online document verification verifies the identity of the customers.
Online Document Verification System
The digitized verification process uses advanced data extraction features to fetch the required information from any document through OCR technology to facilitate businesses. To confirm the identity, first of all, the end-user uploads the picture of an ID document. Later, the automated system fetches the required information using an OCR scanner. Finally, the system screens the ID document and sends the result to the back office. If a customer fails in ID verification, the system sends the proof of documents.
How Document Verification Impedding Frauds?
The AI-powered document verification system runs various authenticity checks to identify fake documents to keep fraudsters at bay from them. Whenever a cybercriminal tries to onboard with illegitimate documents such as photoshopped, or modified documents. The system performs different checks such as MRZ code authentication, rainbow print check, examination of micro prints, etc. to check the originality of documents. In this way, businesses prevent fraudsters from performing document fraud. Online document verification services are extensively used for different purposes. Let’s have a look at the use cases of online document verification solutions.
Use Cases
Passwordless Authentication
Passwords are not too secure to protect accounts as they can be easily cracked by hackers. Online document verification eliminates the need to remember passwords and helps businesses as well as customers to prevent account takeover frauds.
KBA Replacement
Online document verification replaces knowledge-based authentication with biometric-based authentication. It helps users to onboard customers using digital identities.
Deterring Frauds
The automated system helps businesses to combat ID fraud by detecting fake login attempts by fraudsters. Multi-Factor authentication provides full proof of security to businesses to prevent ID frauds.
KYC and AML Compliance
With the changing regulatory requirements from regulators, it becomes a bit difficult for businesses, especially financial institutions to meet security standards. Digital document verification helps businesses to perform robust KYC compliance to establish a good B2C relationship. It also assists them to comply with AML regulations to avoid financial loss.
Age Verification
There are some age regulations for e-commerce platforms to follow to prevent the misuse of their products. Document verification helps online service providers to verify the age of their customers before onboarding them to meet security regulations. It also helps them to keep minors at bay to avoid chargebacks.
Conclusion
An online document verification system facilitates a business to onboard customers securely without the need to carry hard copies of documents. It helps banks and other financial institutions to meet AML and KYC standards to avoid hefty fines and financial crimes. The automated document verification gains customers’ trust due to the security measures. The stringent authenticity checks help businesses to identify criminals before onboarding. It also helps them to comply with security regulations led by regulatory authorities for the well-being of businesses and customers.
