The uprising threat of data breaches and identity theft has caused many problems in various sectors. Escalating in the financial world, stealing someone’s documents, and impersonating them has become a nuisance now both for the company as well as its customers. Businesses want to ensure secure customer onboarding without any hassle. For this reason, they need to develop trustful relationships with their customers so that any potential risks of fraud can be eliminated. But the act of deceiving still prevails and identity verification services need to be put in accord for businesses to flourish successfully without the fear of being scammed by identity thefts.
Evolving the Manual Process of ID Verification
Digitization has evolved the economical sector in many ways. For registering any official paperwork, one had to go through a long procedure of visiting an office physically, standing in a queue, wait for an officer to check their documents in the past. While in order to verify documents now, this manual process has changed into an online system of identifying the documents in a quick and efficient manner. Any forged, false, tempered document is detected in seconds through an automated system based on artificial intelligence technology. A maximum rate of accuracy is reached by cutting off minimal errors in the best possible way. The interest level of users is attained as they want to obtain quick results by consuming less time.
Enabling an Acute Procedure of ID Document Authentication
During the customer onboarding process, firms need to have complete details about stakeholders, vendors, lenders, or clients with whom they are dealing. Entities need to be checked to reveal their true identities and to ensure that they are in compliance with know your customer (also known as KYC) and anti-money laundering (AML) regulations to eliminate any kind of fraudulent criminalities.
The ID document authentication process works merely in two ways:
- The Originality of the Document is Checked: The holograms, watermarks, stamps, or fonts are reviewed to check the authenticity of the official document which can be a passport, driving license, bank statements, and much more. The correct placement pasted on them is also examined to detect any forged or falsified documents.
- Comparing the Identity with Proof of Evidence: The personal information of the individual such as name, date of birth, etc. is validated and matched with the information present in the proof of evidence given by the client by submitting official documents.
Different Ways of Examining Identity Documents
Conducting the document attestation of an individual in the right way is what the businesses want to attain. Therefore, there are three simplified ways of conducting the process of identity verification document:
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The Walk-In Verification
This is a simple old procedure in which the client visits a government office and meets with an official person while submitting their documents who checks and corresponds the details and pictures present on the document while matching it with the person sitting right in front of them. It consists of dealing with low-risk involvement situations.
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Digital Identity Verification
Many software including the KYC software is allowing to digitally verify the individuals. In this process, the company validates the documents of a user by scanning information through OCR (Optical Character Recognition) technology and converting it into readable data. Using an ID reference database, the verification documents are resulted as authentic or non-authentic. This process is used for high-risk individuals more often.
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Facial ID Verification
A similar procedure of digital identity verification is conducted where the scanned document is reviewed with the information stored in the database. Liveness detection technology is used to analyze the facial features of an individual with the picture posted on the ID documents. The individual is asked to upload a selfie or make a recording of their face to properly detect facial elements.
Helping Businesses in Capturing Fraudsters with KYC and AML
By implementing identity document verification services, businesses will be able to secure themselves financially as well as reputationally. Companies need to inspect the funding of money in compliance with AML laws set by the government to prevent the laundering of illegally obtained money. Especially in the financial sector, with the help of KYC software, companies can detect the level of risk that the customer can possess to the organization before onboarding them and deal with them accordingly.
Wrapping it Up
With the problem of data breaches increasing, a growing problem of protecting private information has also surged. Passwords, addresses, personal confidential data have been exploited in various ways by fraudsters in recent times. It has led to a call out for an identity verification system for businesses to securely onboard new customers. Upon knowing the real identity of the users beforehand, firms will be able to establish better trustful relationships with them which will eventually lead to improving their brand image while generating profitable revenues in the end.
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