Identity Verification issues are increasing these days for business clients, individual customers as well as governments across the globe. As per the recent reports, identity theft victims in the USA had to face a financial loss of approximately $26 billion. For this purpose, financial companies are always looking for effective solutions to combat identity theft issues. It should be noted that the IDV procedure is effective against such scams. It enables companies to e-verify documents of their clients through digital means rather than through private offline sessions. These steps are important for adhering to AML/CFT compliance. In this way, companies can avoid heavy financial losses.
Document Checks System – What is the Working Mechanism Behind Digital Document Verification?
Effective digital authentication is significant for adhering to KYC/AML compliance. The latest technology makes the authentication service safe for clients. Following is the procedure:
- The system asks users to show their identity documents before the camera so that system can scan the data and extract information from it
- Once the system captures the image, the information goes through different checkmarks to determine its originality and authenticity. There are some special cases where an expert examines the case himself for any signs of fabrication
- If the information on documents is original and authentic, the user will get the verification message. In cases where the information is inauthentic, the system will reject the documents immediately. In either case, the customer will have a final message
What Are the Possible Advantages and Disadvantages of Document Checks Process For Identity Verification?
Pros – Convenience & Faster Results
The current document checks services can verify the identity of the customers easily. The user only needs to provide an image of the official records (i.e. driver’s license/ passport). The user has the facility that they can complete their identity verification procedure from anywhere in the world.
It means that clients do not need to provide copies of official documents through male or by physical visits to the organization. Now they do not even need an expert every time to check the authenticity of their records. It is because the latest technology can check everything instantly. Hence, there is no need of lengthy verification procedures.
Cons – Low Reliability & No Content Verification
Document checks system has its advantages and perks but it has loopholes that can hinder effective fraud prevention. The advancement of technology has improved the process but cybercriminals can use complex methods to violate the integrity of the system. They know that the document checks procedure only verifies the legitimacy of the documents. It means that fraudsters can use fake credentials and still get away without facing consequences.
As it is clear that document checks procedures only check for the originality of the records. It means that the name, date of birth, and address data of the client will not get verified.
Consequently, the document checks procedure has its merits and demerits. It means that companies cannot just rely on one single method for authentication. They need to use multiple ones and use their strengths to make their procedure foolproof against hackers and fraudsters. Such steps will stop fraudsters who frequently use synthetic identities and records to complete their malicious missions.
Document Checks Verification System – The Interference of Fraudsters
Customers should know that the document checks procedure happens on official documents. If the clients submit fake documents with fabricated credentials, the automated system will reject the records immediately. Fraudsters have multiple ways to manipulate documents. It means that they can use manipulated records that do not have special characteristics of originals records e.g. holograms. Another method that they can use is to steal the credentials of a genuine identity and use it to fool the system. Their third method of bypassing the system is to use an altered record whose writing style was manipulated along with other features. So KYC verification is also used for this purpose.
Document Checks Service – How Effective Is it?
The software has features that enable it to distinguish between legal and illegal records. The accuracy rate of online document checks is quite high as compared to the manual procedure. The eDV process is time-saving, as well as resource-effective. It enables clients to verify their identities from the safety of their homes. The system caters to multiple types of documents across the globe. It means that it can even verify documents from different languages and varying formats.
Finally, a number of contemporary banks and other financial institutions are using AI-backed document checks service in order to discourage cybercriminals. The latest technology helps companies with client identity authentication as well as showing compliance with AML/CFT regulations. The use of artificial intelligence saves time and resources because it is a self-improving system.
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