Online Document Verification – Seamless Customer Onboarding And Regulation Compliance

Technological changes are shaping business platforms. Digital businesses, commercial banks, hotels, social media channels, and airports all are required to identify their customers to comply with regulatory authorities. Customer identity verification is necessary to mitigate the risks of identity frauds and scams and to rule out financial frauds.

Business organizations have to face mass challenges in identifying customers and clients due to insufficient resources and incomplete knowledge. But due to the advancement in technology, experts have recommended the incorporation of online document verification as the ideal solution to combat these predicaments. Other than the benefit of being risk-free, businesses can easily comply with regulations imposed on a national and international level. 

Why is Online Document Verification a Necessity?

Even though technological changes have both benefits and detriments, fraudsters have apprehended multiple tactics to bypass security and indulge in illegal activities. Crimes such as identity theft and illegal edits and tampering of documents have caused individuals to be in alarming situations. Innocent people have to encounter the consequences of paying hefty fines and facing court. 

Furthermore, according to laws and regulations, it is illegal to steal an individual’s identity and to use that information to conduct illicit activities for their own benefit. It is stated in the Identity Theft and Assumption Deterrence Act 1998 that any type of identity theft is a violation of the sanctity of the law. 

But all these can be ruled out with the incorporation of advanced technology known as online document verification services. 

How Does Document Authentication Help In Mitigating Identity Fraud?

FinTech Regulatory authorities such as FATF and FINTRAC have set up Know Your Customer (KYC) and Anti-money Laundering (AML) compliance to eradicate the manifestation of cybercrimes. These regulations have been providing an updated set of instructions to ongoing and new businesses. Through which those businesses have been able to increase their work efficiency and have directed their resources to a more useful platform. 

Additionally, identity document verification has assisted businesses to identify the true identity of their customers and clients before the onboarding process. These artificial intelligence-based online document authentications have deterred the risk of scams and frauds and have ensured seamless compliance towards customer due diligence. 

Types of fraudulent documents that can be caught

1. False documents

False documents are not tampered with, edited, or photoshopped but rather stolen from the true owner. The criminal posses these documents as his own and uses them for personal gains. The online document verification checks ensure that the document is held with the original owner and not an imposter. 

1. Modified documents

These are original documents but are slightly edited to manipulate the authorities into believing that they are original. The documents are edited in a way that the officers are unable to detect them due to their minor undetectable changes. But through artificial intelligence document authentication, these small edits can be caught by checking the fonts and detecting the changes in the pixels and flagged. 

1. Illegal documents

These are replicated or duplicated documents of the original document that has been issued by the government institutes. Such types of documents lack minor characteristics that original documents usually possess such as holograms, special inks, etc. But through online document verification solutions, it gets easier to detect these types of documents. 

The usefulness of AI-based document verification

1. Reduce risk and seamless customer onboarding

Online businesses have been advancing at a faster pace and tend to interact with multiple customers at the same time. Verifying the identities of these customers is essential in reducing the prevalence of risks. Multiple reports conducted have stated that fraud is rising due to a lack of security measures. Furthermore, the lack of security has created fear amongst customers that online platforms are not as trustworthy as they claim to be.  Therefore, in order to provide safe and secure dealings to clients and customers, businesses have apprehended the use of real-time online document verification that is prompt. 

1. Enhanced customer experience

Speed and convenience have been the basic requirements of customers from business entities. Businesses with old-age document verification systems lack speed and efficiency which in turn plummets the customers’ experience. Nevertheless, online document verification is fast and user-friendly. It also provides an identity verification service by uploading the picture of the scanned document. 

Endnotes

Document authentication is every business’s requirement nowadays. They have to determine the true identities of clients regularly and then monitor their activities, and transactions. Manual identity verification services lack in numerous ways such as they are not robust and error-free. They are also costly and time-consuming. But online document verification services are robust and free from errors. In order to comply with regulations and laws, it is always better to go for advanced technology that assists you in all aspects.