Document Verification Process – Eliminating Identity Theft in Business Sector


Dec 20, 2023
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As the influence of technology increases daily, it creates convenience for companies and their users. But it has also created some complications for the community, as money laundering and fraudulent activity issues prevail these days. Businesses use the document verification process to reduce the probability of cybercrimes. 

Document Verification – A Quick Overview

As discussed above, hackers are using innovative ways to hack the client’s system. Some companies do not verify the data of the customer, they sometimes onboard unauthentic users. Therefore it is always recommended to first thoroughly check the profile of the customer and then register them. The biometric solutions ask the clients to give their identity documents such as government identity cards, bank statement proof, and residential address.

Which Papers are Required for the Authentication?

The clients have to submit multiple papers to prove their identity, here are some of the most common papers required by the company:

  1. Government Issued Identity Card

The identity card is the most crucial piece of paper, as it contains all the basic information such as the full name, house address, and date of birth. The modern day’s IDs contain the chip, that holds all the verification details of the customer.

  1. Passport

The passport of the client is also sometimes checked to prove their identity. Some companies examine the travel papers of the customers, as they contain the user’s basic data. Artificial intelligence tools do the verification of documents because they are advanced and they do not commit mistakes.

  1. License
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The companies usually check the license while onboarding the drivers, as it contains their basic records.

Documents of Identity: Significance in Ensuring Compliance

The companies verify the documents online to prevent them from fraudulent activities. The business follows the compliance regulations to work in the industry, these rules are for the companies’ safety. As it protects them from data breaches and cybercrime. The remote onboarding of the user and the verification of the customer profile is crucial in this competitive environment.

  • Know Your Customer (KYC)

KYC is an important step in the verification of the client’s identity, the companies use biometric recognition to verify the profile of the client. The system compares their record with the prior data of the system. This step is done to find a good fit for the organization. The legal papers of the customers are also properly checked, if the client has given any fake or stolen document, then their profile is rejected.

  • Anti Money Laundering (AML)

AML is the global set of rules to control the transfer of money for illicit means. It works with the KCY checks, to properly evaluate the client’s source of income. Multiple techniques are involved to verify the user’s identity, such as the physical or physiological traits that are compared. Other than this the artificial intelligence tools also compare the documents of the user.

How to Verify Documents?

The businesses verify documents online to measure the authenticity of the user, for this purpose machine learning tools are employed.

  1. AI-Powered Evaluation
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The business uses artificial intelligence to verify the profile of the customers. These solutions are very advanced as they do not commit any mistakes. Companies can easily rely on them and can use them in their daily operations.

  1. Optical Character Recognition (ORC) Verification

OCR is a tool that is used to pull out the required information, it is an expert in reading different languages and handwriting. It gathers all the required data and leaves the information which is not required.

What Happens If the Company Does Not Check the Identity Documents?

The document verification process certifies that the user’s profile is safe to collaborate with. The biometric solutions thoroughly check the legal papers of the users because the scammers do not submit their original papers. They use fake or stolen images to hack the account, therefore the companies do not verify the profile they have to face fraudulent activities. The brand image is affected due to such negligence, they have to bear the financial and reputational damage. Other than this they also lose their potential clients due to such cybercrimes.

Summing Up

Nowadays businesses mostly use the verification of documents  process to verify the identity of their clients. The advanced tools aid the companies in onboarding the remote customers, other than this, these solutions are swift and reliable. Firms use machine learning to prevent document fraud and cybercrime cases. The company can compound its revenue and its miscellaneous expenses are also reduced through it. Identity scams are the most prevalent these days, and the only way to get rid of such scams is by the use of the latest technology.

By Admin

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