To complete any verification process or legal formality, it is necessary to show any kind of proof of identity. Identity verification is crucial to any industry be it healthcare, technology, education, banking, travel, or any other online service. The customers are required to show identity proof to validate they are who they say they are. Verification of customers is necessary because it reduces the number of frauds. AI and document verification is an effective way to identify individuals and mitigate fraud.
Manual Vs Digital Document Verification
Identifying customers may require resources like HR, huge funds, time to make effective use of the document verification process. Long and tough verification processes are disliked by the customers but not having verification at all is also not a solution. Businesses may lose their revenues and earn a bad reputation in their name if they fail to comply with compliance.
To onboard legitimate customers, to prevent identity theft and account takeover, and to provide seamless customer experience, AI and document verification processes are a reliable, effective, and hassle-proof solution.
As we have seen for what reasons document verification is used, now let’s discuss why there is a need to verify customers’ documents.
Need to Verify Customers’ Documents
Before we discuss the importance of AI and document verification, let’s see why is it necessary for industries to have it in place be it manual or digital means. Online document verification serves two purposes:
- First of all, it is used to control financial or identity frauds
- Secondly, it is used to fulfill regulatory compliance
The results from fraud can happen without complying with AI and document verification includes not the only invasion of personal or financial assets, but rather it also incorporates racial, sexual, and gender-based comments on social media that can cause a lot of issues.
The Covid-19 breakdown gave a push to online banking that in turn increased the chances of online frauds. This resulted in giving disadvantages rather than benefits. To reduce this type of fraud, industries are spending a lot of money on AI and document verification services.
Digital Document Verification Necessary to Combat ID Fraud
Companies cannot work without document checks because it is necessary to follow all the compliance. Countries around the globe are liable to adhere to Know your customer KYC and anti-money laundering (AML) laws. According to the Federal Trade Commission (FTC), following AI and document verification are necessary for all businesses. Document authentication is important not only because it reduces fraud chances but also is a means to enhance customer experience.
How Does Online Document Authentication Work?
Just like in the manual process, where the official would take your document and verify them. Online Document authentication using artificial intelligence also works in the same way but with more efficiency.
- A.I and document verification process works in a way that requires customers to submit their documents
- The user is also asked to upload a selfie to match against the image on the ID document
- Once the document is submitted, the software would extract data through optical character recognition and then the document is verified
- A.I and document verification also checks that the document is not forged or tampered with
- In case, the document submitted by the customer is genuine and has no signs of forgery or tempering, the user will be asked to sign up for the service
Document attestation verifies the documents that are issued by the government. These include ID cards, passports, driving licenses, and credit cards.
Benefits of using AI and document verification
Identity document verification provides a wide range of advantages. From providing faster turn-around times to managing several documents easily, it is useful to deter document frauds.
Furthermore, document verifications solutions being done digitally are authentic and have reduced the number of errors in the process. Manual processes are not being considered authentic and valid because human intervention increases the chances of errors in the process.
Businesses while providing their customers a seamless experience when doing digital AI and document verification tasks, make users rely on businesses, and enhances their trust in the company.
Summarising it all
Online fraud has become a common thing nowadays. Businesses are losing huge revenues in the name of fraud. Not only the monetary damages, but these scams also cost them loss in customer number and consequently damages their reputation. AI and document verification are perfectly catered to business needs in eliminating fraud chances. Companies can also stay compliant with regulations while following document verification processes.