Tag Archive : Document Verification


Processing Verification Documents – Trends Defining The Post-Pandemic Era

Verification documents are the ID specimens that are issued by a competent authority to validate the identity claims of an individual or a business entity. So, it is a standard procedure across multiple industries to comply with KYC and AML practices. It makes sure that the applicant does not belong to politically exposed persons (PEP) or is involved in illicit activities.

Processes and operations were moving to digital media at an evolutionary pace. The COVID-19 pandemic started an unprecedented revolution in all aspects of a business. Including manufacturing, marketing, legal, even how a company verifies documents.

We are going to cover some of the trends that are dominant in the post-pandemic world for handling verification documents.

Mobile-First Document Verification Services

These days, mobile has become a desktop pc, a shopping mall, a food joint, a bank, you name it. It was only natural that the compliance mechanism would become sophisticated enough to do the heavy lifting on a small device.

With the waves of pandemics still crashing to the shores of civilization, governmental and private organizations. These are actively catching up to issue document verification certificates on the go. States have built up applications for the contactless to ensure the authenticity of the verification documents process.

A number of countries have already issued e-IDs to provide readily available documents for identity proof across several industries.

Higher Frequency Of Data Breaches

Data security is now more sophisticated than ever, with multiple roadblocks and authentication checkpoints. Somehow, cybercriminals often find a way to steal valuable information and use it as spoils of war.

So, Yahoo still tops the list of companies that were subject to the worst data breaches in modern history, with over 3 billion user accounts exposed by hackers in 2016.

In the aftermath of the COVID-19 pandemic, there is nothing novel about document checking and verification through digital means. At the same time, it has raised alarms for both professionals and people. For those who believe that verification documents theft is still one of the biggest security threats.

Fierce Regulatory Checks

Verification documents were already subjected to KYC and AML compliance. With the great shift from paper-based documents to e-IDs for compliance, regulatory bodies are now more active. Then ever to ensure FIs are not being used to threaten the integrity of the international financial system.

The EU’s 6AMLD (6 AML Directive) came into effect in December 2020, with six months’ time to be implemented by regulated entities. It was a part of Europe’s collective drive to stop the advances of money laundering and terror financing.

The rationale of shoring up regulatory defenses is to plug the tiniest gaps in the current due diligence regime including documents verification for AML and CFT compliance.

Application of Artificial Intelligence For Verification Of Documents

Another rising trend to check the validity of verification documents is to employ Artificial Intelligence and Machine Learning tools to flush out counterfeit condiments and false IDs.

AI has successfully taken over several industries, from leisure and travel to online gaming and FIs. There is a consensus among industry leaders that Artificial Intelligence will be leading the way for document verification practices.

It is smart and intuitive enough to pick up subtle abnormalities in forged documents in real-time. Companies that have already adopted the AI-based document verification process report that they are getting the best bang for their buck. So, the trend is here to stay and grow tremendously.

Document Attestation Frauds

The unprecedented rise of digital financial transactions through e-wallets has risen astronomically in 2020. Although it has opened new avenues for service provision, there is a hanging sword of data security and document attestation frauds. According to a survey by Statista, 43% of the respondents predicted a rise in identity theft and documentation fraud episodes.

Although the application of AI and ML have helped the compliance departments mitigate the risk of letting false positives into the system. It has met with another dilemma as hackers also use such tools to bypass digital security measures that are in place for identity document verification. The intensity of such attacks is on the rise.

Verifications Documents – What To Expect

The nature of verification documents and the systems to assess their integrity are improving radically in a short span of time. These documents are now laden with security features, such as QR codes, watermarks. That makes it a challenge for hackers to counterfeit such documents.

So, Industries are pooling their resources to ensure the safety of clients’ data. Although, the current trends indicate a regime in the making to ensure a more robust and safe environment for the verification of identity documents.

A.I And Document Verification – The Best Way To Verify Identity And Mitigate Frauds

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.