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In the age of rapid digitization, mitigating the rising cases of identity theft is still a challenge worldwide. According to the National Council of Identity Theft Protection, the FTC received around 6 million theft reports. This is an alarming statistic that pushes business owners to implement innovative digital solutions and legislators to upgrade KYC & AML regulations to discourage crimes. The application of the document verification process can help corporations deal with the above challenges while ensuring compliance with international obligations. The following sections in the article go in-depth about the significance of the document verification process and how it can streamline the customer onboarding procedure.
Combating Online Fraud with AI-Driven Document Verification Process
When customers want to open online accounts or make financial transactions, the staff members demand government-issued records from new clients, such as driving licenses or passports. The authentication officer validates all the details and cross-checks data against global watchlists to discourage high-risk entities. This is important to deter fraud attempts from scammers.
Nowadays, artificial intelligence can easily replace verification officers because AI-powered solutions can instantly perform remote document verification process. This way, businesses can perform monetary transactions by verifying the credentials of customers, which discourages exchanges from criminals.
If corporations do not opt for the latest digital solutions, companies will keep facing fraud attacks and lose credibility in the market.
Top 5 Document Fraud Strategies From Scammers
Performing record scams enables fraudsters to bypass security protocols and receive benefits associated with victims, such as insurance. The following headings discuss 5 famous techniques used by fraudsters to accomplish nefarious goals.
Illegitimate Records
Illegitimate documents are completely fake because such records do not have special elements that are part of original documentation. For instance, there are no holograms or micro prints which can distinguish forged records from government-issued records.
False Documents
False records do not have manipulations, but criminals physically steal the documentation to fool the document verification process.
Modified Records
Cybercriminals manipulate the documentation to circumvent the record authentication solutions. If companies still use outdated procedures, experts won’t be able to catch the deception. Only in the case of an AI-powered document verification process do corporations successfully identify forgeries.
Camouflage Documents
Camouflage records have fake information about issuing authorities because such agencies do not exist or do not have the power to issue records. This is a basic type of scam, but it circumvents the security protocols successfully.
Sample Records
These are government-issued documentation or photos of records that are publicly accessible. Records on the Web, TV shows, and presentations or shared with police as stolen are all considered in the category of compromised/sample records. Hence, the significance of record validation procedures becomes obvious.
Top 8 Parameters to Screen User Records
AI-driven document verification process checks consumer documentation during the validation procedure. Below are 8 famous parameters against which the AI-powered document authentication process screens client records.
Performing Authenticity Checks
AI & ML models screen user documentation to effectively confirm the originality and prevent fraud.
Identifying Document Format
AI-driven record verification services can easily identify the correct format of consumer documentation in real time to fight fraud.
Screening MRZ Code
During the validation procedure, AI models instantly screen the MRZ code to identify forgeries within the records. After determining the authenticity of documents, the system decodes MRZ encryption and cross-checks data against all records.
Identifying Crumpled Edges
User records are made up of natural paper, which leaves them susceptible to wear & tear. This is important because folded corners decrease the authenticity of user documentation.
Highlighting Manipulations
The support from AI & ML models can identify forgeries in user records instantly. If companies do not opt for the latest document verification process, corporations will keep facing fraud attempts which will ruin market credibility.
Confirming Holograms & Micro prints
Government-issued records have special characteristics, such as rainbow prints. AI-driven document verification process can instantly detect the absence of special elements and discourage fraud.
Detecting Special Paper & Ink
To discourage fraud, authorities design documents using unique paper and ink to distinguish original records from fake ones. This way, the verification procedure catches manipulation quickly.
Confirming the Presence of Micro-prints
The government-issued records contain several micro-prints that serve as an additional layer of security against fraud attacks. AI models check for micro prints to authenticate user records.
Concluding Remarks
The application of the document verification process facilitates organizations to streamline the onboarding procedure to attract only genuine customers. The cutting-edge solution processes user records in real-time to determine originality or authenticity. This way, the state-of-the-art solution also cross-checks data against global watchlists to identify & discourage high-risk entities.
Business experts can collaborate with a third-party vendor to implement a document verification process for effective fraud prevention. It also facilitates compliance with KYC & AML regulations to help companies avoid hefty fines.
