
How Document Verification Services Are Deterring Frauds In This Age?
Identity frauds are the most common type of fraud these days. According to Javelin, US businesses lost almost $17 billion in the name of identity fraud. Mistaking criminals for genuine customers can put banks to suffer from money laundering and terrorist financing. Document verification services are a way to identify customers to deter such frauds.
Conventional Vs Modern Document Verification Checks
Conventional methods of verifying documents were very tedious and possess a lot of friction for both the verifier and the customer. Users have to visit offices along with their documents in order to get themselves verified. The professionals there would take days to complete the document authentication process. Once the procedure is completed, the results are delivered to customers.
However, traditional methods incorporating human intervention can never deliver 100 percent results. There is always a chance of having errors in the results. Therefore, manual document attestation is not reliable when it comes to mitigating scams.
To counter the challenges in manual processes, digital document verification services were introduced in the market. Machine learning and artificial intelligence can help combat document fraud. Online methods can ensure a guarantee of the results of the verification process. It is easier for both the verifier and the customer.
Let’s have a Look at what are Document Frauds?
Any type of buying, selling, or crafting counterfeit IDs in order to commit crimes is called document fraud. Frudsters commit such crimes to gain monetary benefits, to process money laundering, or to perform illicit payments, company registration, or immigration. Document verification services are the answer to these types of challenges.
To undergo document fraud, bad actors use both genuine documents and counterfeit documents. Genuine documents can be stolen, hacked, or purchased but they are not the ones that undergo changes in the information or the data in the documents. While counterfeit documents possess pseudo (documents that are not official but they are crafted in such a way that gives them a sense of real documents), counterfeit (these are the illegal replicas of the government-issued documents) and the forged documents (these can be produced by altering information in the document).
There is an exponential increase in crimes including documents. Governments are making policies to catch fraudsters as soon as possible. The most favorite documents for criminals are ID cards and passports. The most prevalent document types involved in document fraud are IDs and credit cards. Document verification services are helpful in minimizing frauds involving any type of document. The myth around driving license being the key element in spreading document fraud is not true according to previously stated facts.
Process of AI Document Verification
At the time of customer onboarding or enrollment, users are asked to upload the picture of their government-issued documents, like ID cards, passports, driving licenses, and credit cards. After that, document verification services require customers to upload a selfie.
After uploading a document, the state-of-the-art optical character recognition can then extract data from the document and convert it into machine-readable form. The verification software then runs document verification services and the results are displayed to customers.
Machine Learning and Artificial Intelligence – Technologies to Deter Frauds
According to above mentioned manual processes, they are tiring and unsustainable. Additionally, they are costly and time-consuming. To solve this problem of merchants digital document verification services have been introduced into the market.
Machine learning and artificial intelligence can read the document for securing businesses from facing identity theft. They read the data and then perform document checks to verify if the individual is showing original documents or trying to spoof the system.
Artificial intelligence along with machine learning can help businesses detect any type of suspicious money laundering so that they can stop the process at that time and run background checks. Thus document verification services can be helpful in reducing crimes. While using AI-based document verification solutions, companies can reduce costs and increase speed and security for customers.
Benefits of Document Checks
There are countless advantages when it comes to document verification, for example
- It is a very fast process. They can verify documents within minutes and are frictionless. Digital document verification services are easy to scale are highly accurate
- Along with their speed and accuracy, it is the best way to deter online fraud
- The reputation of the business remains intact
- Customers while enjoying swift document verification services also show their confidence in the business policies
Summarising it all
There is no way to prevent identity fraud other than to have a verification process in place. Document verifIcation services are all you need to deter identity scams. Various industries like healthcare, e-commerce, travel, and finance are deploying document attestation to enhance customer experience.