Technology

Document verification – A Necessity to Secure Businesses from Scammers

Online verification of documents has become necessary for securing businesses from any intimidating situations set up by fraudsters. When it comes to remote onboarding, online document verification eliminates the requirement for in-person verification. It’s essential for companies that regularly deal with high-value transactions, such as financial organizations and banks. 

There are several benefits of using technology to ingest official forms of identification into the digital system for verification. Online document verification works by performing certain checks that scan the IDs and determine their authenticity. It’s done by comparing it against information within a database.

Document Verification Process

Document verification works by scanning official documents, including driving licenses, passports, or bank statements. Document verification service checks a range of features in these documents, such as holograms, watermarks, fonts, stamps, or other security features. Furthermore, personal information, including name, address, and date of birth, is also validated against third-party data sources. It’s crucial for organizations selling age-restricted services.

A document verification process involves three fundamental steps:

 

Submitting User Information

The verification process prompts users to submit an image of their identity document by scanning it through a smartphone camera or webcam. The back-end system receives input from the user in the form of the document’s image. Users also submit their selfies for the further identity verification process. 

Evaluation of Credentials

To check the authenticity of the information provided by users, a series of checks is carried out, and the originality of the document is confirmed. After that, the document’s photo and the selfie submitted by users are cross-checked for verification.

Verification and Results

After successfully analyzing user credentials, the validation result of the user’s identity is shared with the client. 

 

Some of the checks for document verification include the following aspects.

  • Fraud Detection and Document Scamming

The document verification process involves scanning for critical information, such as ID numbers, barcodes, etc., to link them with database information to authenticate the data. In addition, these scanners notice scammed documents through different forms of pattern recognition like font style, watermark, and signatures.  

  • Database Checks

After scanning a document, the document-checking service compares it against the information related to multiple IDs in a national database. When scanning national IDs, it’s necessary to verify them through an official database, and authentication solutions often access several national databases. Furthermore, protected versions of these databases may also be accessed to validate such documents. 

  • Selfie Liveness and ID Checks

The identity verification solution performs image checks against users’ selfies. It supports comparing these images with IDs to connect biometric and document verification and includes liveness testing. The reason is to verify whether the right user is present or a scammer is trying to play some tricks. It’s also an important aspect of preventing spoofing attacks. 

Role of Document Verification in Compliance

Digital service providers need to establish strict verification protocols to prevent their business from scammers. The continued use of digital services has driven the requirement for the online onboarding process. It also needs to streamline digital customer service by verifying documents to eliminate any chance of fraudulent events. 

One industry where regulations and online customer service are often in dispute is the financial sector. After the incident of 9/11 and the establishment of the Department of Homeland Security, regulatory authorities established different laws to prevent financial crimes, including terrorist financing. 

Document verification works by scanning official documents, including driving licenses, passports, or bank statements. Document verification service checks a range of features in these documents, such as holograms, watermarks, fonts, stamps, or other security features. Furthermore, personal information, including name, address, and date of birth, is also validated against third-party data sources. It’s crucial for organizations selling age-restricted services.

Document verification service checks a range of features in these documents, such as holograms, watermarks, fonts, stamps, or other security features. Furthermore, personal information, including name, address, and date of birth, is also validated against third-party data sources. It’s crucial for organizations selling age-restricted services.

Two key regulations strengthened at that time include KYC and AML laws.

Know Your Customer

KYC, or know your customer is a standard due diligence procedure used by businesses to assess the identity of their customers. It also provides the company feasibility to assess the sources of their client’s funds, whether they are legitimate or not. KYC requires that banks employ strict customer verification procedures to avoid any troublesome situation that may arise through fraudulent activities. These background and document checks and different other screening measures. 

Anti-Money Laundering Laws

AML or Anti-money laundering regulations are meant to fight against financial crimes and are often required alongside the kyc checklist. Anti-money laundering rules aim to identify and report suspicious activity like securities fraud, market manipulation, etc. In addition, other regulations may require identity verification alongside other credentials. 

Final Thoughts

Online document verification helps companies secure their customers’ identities from getting wrongly used by scammers. It also helps to identify fraudsters who use technology to trick people through identity theft. Online verification of documents helps businesses identify thieves and keep them off their platforms. Document authentication makes it easy for organizations to verify new customers during customer onboarding. This is especially important for businesses regularly dealing with high-value transactions, such as financial organizations, banks, and cryptocurrency companies. During the review and verification of new account applications, such organizations need to ensure with whom they are doing business so that any intimidating situation can be avoided with proper authentication checks. 

One industry where regulations and online customer service are often in dispute is the financial sector. After the incident of 9/11 and the establishment of the Department of Homeland Security, regulatory authorities established different laws to prevent financial crimes, including terrorist financing. 

Document verification works by scanning official documents, including driving licenses, passports, or bank statements. Document verification service checks a range of features in these documents, such as holograms, watermarks, fonts, stamps, or other security features. Furthermore, personal information, including name, address, and date of birth, is also validated against third-party data sources. It’s crucial for organizations selling age-restricted services.

Document verification service checks a range of features in these documents, such as holograms, watermarks, fonts, stamps, or other security features. Furthermore, personal information, including name, address, and date of birth, is also validated against third-party data sources. It’s crucial for organizations selling age-restricted services

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