The world is undergoing a massive technological evolution. The COVID-19 pandemic created a favorable environment for progress in this area. This scenario has unexpectedly raised the appeal of connecting and onboarding remotely. With the increase of huge development, fraudsters are also evolving. According to a report, 2.2 million cases of fraud are reported all over the world every year.
Businesses are looking for dependable solutions to combat identity fraud that is spreading quickly, and document verification is the most popular option. This is a requirement of the AML and KYC regulatory authorities for organizations. According to UK regulations, identity verification is necessary for all firms before onboarding a new client. Online services that enable companies to quickly verify customers use AI-powered software to accelerate the verification process. In light of this, there are a number of reasons why a digital identity document verification solution is better than the previous manual method.
Digital Document Verification – How Does It Identify the Clients?
Only a small number of people may not be aware of the document verification services that companies are now using to identify them. The platform’s onboarding procedure is straightforward; it will request official documents that serve as identification proof. In the manual process, a verification officer examines the documents and confirms the customer’s appearance in the picture while also verifying the details. However, this approach has a number of drawbacks, most notably the possibility of human error.
Online document verification, however, identifies the imposter and onboards the real customer. The main advantage of using these services is that companies can expand their clientele globally and bring on remote customers. Fraudsters today are better equipped and more advanced than they were in the past. Digital document authentication services are in competition with one another. Some of the few document types that fraudsters use for identity theft include the ones listed below:
- Altered Documents
Sometimes, scammers simply change the documents before submitting them for authentication to save time and money. Criminals alter the document by changing the address, age, or name using Photoshop software. It is very difficult for human staff to identify these documents because they have been altered beyond recognition by their eyes. But AI-powered technology performs a thorough scan and evaluates the font, pixels, and size of the document to avoid fraud.
- Forge Documentation
Forged documents are completely false. They may lack watermarks, prints, holograms, and other legal requirements. The digital document verification process runs the scan and identifies these errors.
- Fake Documents – A Stolen Ones
These papers are actually stolen rather than altered or forged. Criminals can use this to impersonate someone they are not. Taking out a loan, opening up a bank account, or applying for medical benefits are a few examples. Fraudsters can easily prevent ID document verification by obtaining these.
Manual vs. Digital Document Verification
According to a report, the market for digital document verification solutions is anticipated to reach more than $18 billion by 2027. So, there is no alternative to these solutions for businesses. Customers are a company’s true asset, and protecting them is its top priority. Consequently, the Identity Theft & Assumption Deterrence Act was enacted by the US Congress in 1998. It states that anyone who pretends to be someone else will be subject to the law.
Businesses must adhere to KYC/AML regulations by considering all these factors. They ought to do so in order to maintain their value and attract loyal clients. The process should accelerate as the world does. As a result, digital document verification is the most dependable solution in terms of fraud detection, accuracy, and cost-effectiveness.
- High Accuracy
The AI-powered services analyze documents more thoroughly than manual verifiers could ever hope to. The database contains thousands of records, and the online document verification service compares the information with them. So, there is no reason to question its accuracy.
- Fraud Detection
Photoshop can change a document in a matter of minutes, but manual detection can take days or even go undetected. OCR can recognize the artifacts that were left behind even though the alteration is not entirely accurate. Businesses can avoid fraudulent and illegal onboarding in this way.
Money and time are both very important. Businesses are constantly looking for affordable solutions that don’t require large sums of money. Additionally, the availability of digital document verification is always available, unlike manual verification, which is constrained by schedule.
Fraudsters are now more powerful than ever due to technological advances. They can easily engage in illegal activities such as identity theft, money laundering, terrorist funding, and so on while remaining undetected. Companies should now create strategies that go beyond simple traditional methods. AI-powered online document verification is the solution to all of these issues. You can also find list of ufc events held and scheduled by the Ultimate Fighting Championship (UFC), a mixed martial arts promotion based in the United States.