Document verification involves the verification of different identity documents like passports and driver’s licenses by using sophisticated AI-enabled technology.
Nowadays, both private and public entities are dealing with various fraud types, especially identity thefts. It’s becoming a global concern for industries across the globe – costing businesses and organizations several million dollars. According to recent stats, during last year identity theft fraud cost the US almost $26 billion in financial loss. However, growing businesses are attempting to find a reliable method to deal with various fraud attempts. With an increase in data breaches, identity document verification has gained huge popularity among businesses to authenticate consumer identity.
It would ensure mitigating risks and compliance with different regulations. But meeting these regulations is not as easy as most people would like to believe. The document verification process usually involves manual work that poses a risk of high losses, dissatisfied customers, and data security issues. By integrating appropriate document authentication steps, businesses can ensure protection from these problems. Therefore, this process is proven to accelerate customer experience and abridge superior customer support.
Customers that require identity verification, first hold up their identity documents in front of the camera. The system automatically scans and extracts the relevant information with the help of an OCR engine. After receiving the image, the solution runs a document verification process to ensure the authenticity of different document types. Other than an AI-enabled document authentication system, most authentication processes require manual oversight to detect any fraudulent attempt.
By opting for the additional option, the software captures the live image of a customer’s face and matches it with a photo on the document. Lastly, the system returns a verification result as either verified or unverified.
Here we will discuss the advantages and disadvantages of working with a document verification solution. Moreover, how it ensures verification of a person’s identity.
Providing Ease of Using
Through different document validation services, authenticating an individual’s identity is quite simple that involves uploading an image of a person’s identity document. Identity documents can vary from a driver’s license, a passport to national ID cards. The verification process can be performed either through a web camera or by sending a photo remotely through a smartphone device.
Improved Turnaround Time
Organizations can improve their turnaround time with an automated document validation solution. Contrary to the AI-enabled document verification system, the identity documents can be submitted manually which requires manual verification. But through the manual verification process, companies can increase their risk of financial loss. The electronic document verification process introduces agility throughout the verification process to authenticate customer documents.
Although document verification has proven to be the most effective tool for preventing different fraud attempts, it’s not always authentic. Fraudsters are using improved technology and sophisticated methods to beat the system while preventing any fraudulent attempt. By implementing such innovative methods, criminals are becoming more successful with fooling the system. Fraudsters could even bypass the most experienced border control system. By properly utilizing the identity document verification system, it’s enough to prove the document’s legitimacy.
Missing Checks With Document Verification
Document verification checks for the authenticity of the document but most solutions can’t verify the person’s name, address, and DOB. Therefore, there still exists a possibility that fraudsters could get through the identity verification system by using a fake ID. To avoid any such suspicious activities, it’s important to integrate document verification with facial biometric authentication to improve the verification process.
Therefore, now It’s determined that document verification is a great tool but there is more required than depending entirely on a single solution. For this reason, countries like the United Kingdom and Australia have clear rules to implement a multi-layered verification process for ensuring the safety and security of a person’s identity. By using a multi-layered verification process, companies could easily prevent frauds and ensure the highest security during online transactions.
This is the most traditional method to prove a person’s identity. Generally, identity verification occurs either physically presenting the documents like a driver’s license or passport or entering personal information like name and address to an online platform. These document credentials are usually verified either in-person or online against a reliable data source.
Identity authentication is quite effective against various fraud types. Coupled with the usual information required for identity verification, knowledge-based authentication (KBA) is also used. Typically, KBA uses different questions to verify someone’s real identity. These are often referred to as out-of-wallet questions that are usually not found on the identity document.
Document verification solutions allow customers to authenticate their details on the internet either in-store or in-person. Moreover, it would also allow companies to match different statutory obligations. But these obligations are not limited to anti-money laundering (AML) regulations and their practices.