Document forgery is one of the heinous crimes that happen during customer identity verification and client onboarding. Nevertheless, every problem comes with a definite solution. Digital document verification is the ultimate resolution that helps companies mitigate the risk of financial fraud and identity theft. This article discusses the significance and importance of document verification while explaining its mechanism of action.
What is Document Forgery?
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Identity document forgery, or fraud, is changing, creating, or utilizing real or false documents to cheat or circumvent digital security systems. The fines for document scams can vary depending on the case, purpose, and kind of document falsified. Nevertheless, falsification of official documents, for instance, identity cards and driver’s licenses, to sell them is deemed a major fraud offense under numerous regulations.
Increasing Need for Digital Document Verification
Data and identity theft issues are increasing, charging companies with hefty fines. Up to June 2022, around 2.4 million incidents of fraud, including identity theft and other types of fraud, were recorded. As a result, document verification is now a crucial tool used by any business to confirm that its clients are who they say they are. Along with helping organizations in many other ways, it certifies clients during the onboarding process.
Steps to Verify Documents
Digital document verification checks various features of documents, including watermarks, stamps, holograms, fonts, and other security markers. These attributes help companies to verify whether the documents are original or forged. However, this is how a complete document verification service works:
Gathering Data and Relevant Documents
In this initial step, users are requested to upload pictures of their original ID documents. The algorithms monitor the record comprehensively, including all encrypted data, and identify it. Later, the documents are pre-processed for the second step. This phase includes verifying the borders of documents and de-skewing pictures while enhancing their brilliance and color to ensure satisfactory information extraction.
Extraction of Data from Documents
The details are extracted from the provided documents, and all the nonessential data is dumped. The smart engine drags all the knowledge using Optical Character Recognition (OCR) technology.
Verification of Documents
The recovered data is cross-matched by systems with the existing database to review its genuineness. The verification reviews carried out include face recognition, edge detection, front-to-back correlation, cross-verification with other global IDs, and matching the selfie to the ID card images.
Benefits of Digital Document Verification
Businesses are searching for strategies to stop these horrible crimes and establish themselves in the cutthroat industry as fraud is becoming more and more commonplace. Therefore, AI document verification is their preferred solution because it offers a quicker return on investment, expedites customer onboarding, guards against fraud, shields them from penalties for noncompliance, and enhances their brand image.
Accelerated Return on Investment
Automated document processing helps businesses save ownership expenses and boost ROI compared to traditional technologies.
Fast and Secure Client Onboarding
Because customers do not have to stand in line for verification, digital document verification services onboard clients faster than manual methods. With only a few facts, the AI-powered document verification quickly and instantly verifies the legitimacy of the documents in real-time.
Better Customer Experience
Businesses may differentiate themselves from the competition in the fight to outperform them by providing a better customer experience. Customer satisfaction either builds a company’s reputation or damages it. Here’s when using automated document verification services pays off. Customer confidence is increased when a firm complies with KYC/AML regulations. They have an inherent ability to project a favorable brand image, which helps the company increase sales and establish itself in the cutthroat global marketplace.
In A Nutshell
One of the most important ways that companies may protect themselves against financial and identity fraud is by using digital document verification. Artificial intelligence (AI) document verification services have quickly become the go-to for digital identity verification due to their many advantages, including a shorter time to return on investment, faster customer onboarding, protection from fraud, avoidance of noncompliance fines, and improved brand reputation. Businesses can improve their customer service, gain trust from customers, and stand out in the competitive global market by using automated document verification services.