The globe is facing multiple challenges, and the authorities are passing regulations to overcome these threats. Money laundering, human and drug trafficking, and identity thefts are amongst those prevailing threats. Among these threats, identity theft scams are the most prevalent scams during the covid era. Banks, audit firms, and multiple other financial organizations face all these threats when they mistake scammers as legitimate users.
To combat these frauds and scams, FATF, FinTech, and other regulatory bodies have imposed fines and sanctions on those financial businesses that deal with monetary transactions. The corporations who usually face these sanctions do not comply with the set rules and regulations to report money laundering and terrorist financing activities along with identity theft. The sanctions imposed are to comply with KYC verification.
Why Identity Document Verification?
Know your customer verification is the verification of the customers or clients the business is dealing with. The clients' identities are screened, and if they are ultimate beneficial owners or politically exposed persons, money laundering and then their transactions are regularly monitored.But manual identity document verification is difficult and tiresome to perform because of the following reasons.
- They are prone to human errors
- The verification officers cannot keep track of all the countries changing holograms, inks, and prints
- They consume a lot of time
- Managing multiple verification processes at the same time requires the hiring of additional manpower
- Customers are required to be physically present for verification
Digital identity verification ways can provide multiple benefits making it convenient for both the consumer and the verification department.
What is Document Verification?
Manual Vs. Digital
Any type of creation of fake IDs or selling them to perform fraud is called document fraud. Criminals are committing such scams in order.- To get monetary benefits
- To perform money laundering
- To process illegal payments
- For immigration purposes
- To register a company
- For terrorist financing
- To smuggle drugs
To carry out document scams, fraudsters use both manipulated documents and genuine documents. Real documents can be robbed or bought, but they usually do not hold modifications in the data of the documents. Nevertheless, fake documents include false, counterfeit, and forged documents.
There is a surge in scams when analyzing the documents. Particular governments are devising rules to catch perpetrators as quickly as possible. The numerous manipulated documents that the cybercriminals use are passports and ID cards. The most utilized document examples in document fraud are credit and debit cards and identity documents. Online identity document verification is essential in decreasing theft and combating the fraud associated with them.
After submitting the documents, the creative technique known as OCR can retrieve data from the documents and convert it into a machine-readable form. The software then administers the document verification, and the outcomes are displayed to the client.
Artificial intelligence and machine learning can scan the text to preserve companies from encountering identity scams. They view the information and then select document identification to verify if the user is presenting official documents or attempting to make a fool out of the policy.
AI, accompanying ML, can aid organizations in classifying any suspicious money laundering activity so that they can put an end to the scheme at that point and undergo a background verification. Thus online identity document verification can be helpful in reducing scams. Using an AI-based document checker, companies can lessen costs and boost the speed and security of users.
There is a surge in scams when analyzing the documents. Particular governments are devising rules to catch perpetrators as quickly as possible. The numerous manipulated documents that the cybercriminals use are passports and ID cards. The most utilized document examples in document fraud are credit and debit cards and identity documents. Online identity document verification is essential in decreasing theft and combating the fraud associated with them.
Method of Online Document Verification Certificate
When the customer enrols, consumers are expected to present a picture of their government-issued documents, like identity documents, credit and debit cards, passports. Following that, online identity document verification mandates the clients to submit a selfie.After submitting the documents, the creative technique known as OCR can retrieve data from the documents and convert it into a machine-readable form. The software then administers the document verification, and the outcomes are displayed to the client.
ML and AI - Technologies to Depreciate Thievery
According to the above-mentioned conventional methods, manual identification is wearisome and is non-sustainable. Furthermore, they are costly and time-taking. Therefore, to solve the issues of the corporate world, online identity document verification has been incorporated into the trade market.Artificial intelligence and machine learning can scan the text to preserve companies from encountering identity scams. They view the information and then select document identification to verify if the user is presenting official documents or attempting to make a fool out of the policy.
AI, accompanying ML, can aid organizations in classifying any suspicious money laundering activity so that they can put an end to the scheme at that point and undergo a background verification. Thus online identity document verification can be helpful in reducing scams. Using an AI-based document checker, companies can lessen costs and boost the speed and security of users.
