As people are going digital with technology, identity fraud is increasing worldwide. The significant advancements of the modern world are making interaction seamless between users. Fraudsters exploit the new systems to scam clients and even fully developed businesses. According to the FTC (Federal Trade Commission), the Consumer Sentinel Network was hit by more than 5.7 million reports last year. Among these filings, 49% of reports were filed against fraudulent activity, and 25% were based on identity theft. Business and corporate firms are taking crucial steps to counter the prevailing fraud issues. ID document verification process is an excellent way by which many firms minimize the risks of fraud and money laundering.
What is ID Document Verification?
As the name suggests, the ID document verification process evaluates the clients’ genuineness. The method performs a fast and secure check on the documents of customers. Implementing the digital document verification method across the business network helps prevent fraud. Other than prevention, the process also assists in detecting vulnerabilities caused by fake papers. The modern-day online document verification services enable the firm to enroll new clients securely. Organizations can verify the integrity of their clients in real-time, thanks to AI-based verification systems.
Document Verification Solution
As discussed earlier, the cases of identity fraud are increasing each day. Fraudsters mimic fake identities to bypass checks and exploit the business network. Many businesses have deployed the ID document verification system to counter this strategy. This efficient solution verifies the client’s identity by evaluating their government-issued licenses and paperwork. The system requires legal identity cards, passports, driving licenses, etc., to check credibility.
Authenticity Evaluation
Authenticity evaluation is a crucial part of the digital document verification process. This technique plays an integral role in detecting fake documents. The AI-based systems utilize technology to compare the user-uploaded papers with thousands of other templates in the repository. It compares the documents with registered databases to verify the genuineness of the paper. The AI-based check performs several verification algorithms to detect any sort of manipulation. This method prevents scammers from uploading forged documents.
Efficient Data Extraction
Data extraction is necessary to verify the identity of a client. In fact, the ID document verification systems rely heavily on digital data extraction from OCR (Optical Character Recognition). The documents uploaded by the client undergo the authenticity evaluation first, as mentioned above. After successful authentication of papers, the document checker further tests the data printed on the files. Optical character recognition technology plays a significant role in this operation. The system extracts the data mentioned, such as name, date of birth, address, etc., from the papers. The credentials are then compared to the information from the official database to ensure the right person accesses the profile.
Importance of Digital Document Verification
Documents are the primary source of information from which businesses check clients’ credibility. The integration with technology has made the process quite simple and fast. Most companies have adopted the ID document verification process as their core method. Recent reports reveal that digital verification methods perform much quicker and better than traditional customer identification methods.
Automated Process
Digital ID document verification is an automated process that evaluates a client’s identity in real time. The modern-day OCR-powered solutions automatically capture and extract the data from the papers. Also, the authenticity check technique works automatically in the backend, evaluating the genuineness of the document.
Fully Digital Method
A fully digital verification method increases productivity which reduces manual work. The online solution enhances the output by producing fast and optimized results. Moreover, businesses implementing the ID document verification method don’t need to contact national offices. The whole process is synchronized digitally.
Faster Verification
The ID document verification process enables quicker identification right from the mobile application. According to the reports, the most efficient systems take minimal time to seconds to verify the client’s identity.
Accurate Results
The ID document verification system produces accurate results most of the time. The rate of accuracy for verification beats the chances of fraud. This method enables security against identity theft and minimal risk of exploitation.
Conclusion
ID document verification process is the main component of customer identity verification. The method uses modern-day technologies such as artificial intelligence and optical character recognition. The utilization of these techniques allows businesses to verify identities in no time. Other than user identification, the document verification process is also used in AML (Anti-Money Laundering) screening to confirm the user from the list of PEPs.
