Identity theft is the primary concern of the online finance industry. As reported by FTC about 65100 identity thefts were reported by consumers in 2019. Governments and businesses are trying to tackle this issue in some reliable and convenient way. In this era of digitization, document verification is the best way to counter identity theft, fraud, and especially data breaches.
Why Is Document Verification Necessary?
Document Verification is the best solution to fight cybercrimes. As cybercrimes are increasing heavily and businesses are looking forward to countering them. Online document verification of the customers will help the business to build trust upon them and perform business activities more easily.
What if a customer’s documents are not verified and he tries to steal money through identity theft on an online financial site. The financial site will possibly receive a chargeback from the original customer and customers will feel insecure to do their business on that site.
How Document Authentication Is Done?
Online document authentication is done in three simple steps
- Capture: the user just takes or uploads the picture of a government-issued identity document to the site
- Extract: the AI extract the required information from that document through OCR
- Screen: results are shown to the screen through API i.e verified or not-verified
The government issued identity document can include an ID card, driving license, passport, utility bills, etc. The user can easily get him verified by using a mobile phone or laptop that has a camera.
The online document verification service will be able to detect the fraudulent attempt by rejecting the types of documents listed below:
- Unauthorize Documents:
These documents are completely fake, made by fraudsters. These types of documents are not issued by any government authority. These documents lack government stamp holograms and other standards. These types of documents are easily detected by AI because AI can be trained with thousands of data sets consisting of all government-issued documents around the world
- False Documents:
These documents are not completely forged instead they are stolen physically. Fraudsters try to deceive the online documents verification service through that. Just like they steal your ID card and try to open a bank account through that.
- Modified Documents:
These documents are original but altered to fool the document verification services. Most fraudsters try to change the address or father’s name to impersonate some user. These types of documents are difficult for humans to identify but AI can catch them easily.
Online Document Verification Helping Businesses To Counter Fraud
To counter the rising number of cybercrimes the regulatory authorities like FATF and FinMA have advised businesses to adopt KYC (Know Your Customer) and AML (Anti Money Laundering) compliances. They can be achieved by document verification service providers in which documents are authenticated. When the customers are verified through KYC and AML, the risk of identity theft and online scams declines.
According to Safe, King’s College Hospital NHS Foundation Trust achieved a 400% ROI (Return on Investment) by using document verification.
How It Can Help Businesses Grow Faster And Secure:
All the businesses in the online financial industry will grow faster by adopting online document verification. The freelance industry is a huge marketplace in the future that has day-to-day online transactions. It also has the threat of cybercrime like other online businesses. If a freelancer is not verified and he takes some money from some user but never delivered the project to him.
The freelance site tries to connect with the freelancer but all the personal information he provided during sign-up is fake. Now the freelancer website is responsible for the money theft of the buyer. If this number increases the freelancer will face huge chargebacks and ultimately they have to close their site.
About all the online finance businesses need to adopt an online document verification system as it will build more trust while doing online business. The customers will feel more secure while performing online transactions.
By adopting the verification system the business will provide more ease to the customers because they can get verified remotely. There is no need to visit the company’s office, it will save time and energy for the customer and business. Businesses will surely get ROI in a short time as it will reduce the rate of chargebacks.