Technological advances are shaping businesses worldwide. Every company wants to increase customer satisfaction to retain consumers in the best way possible. For this purpose, verifying the identity of the entities is essential before onboarding them. Various kinds of document fraud have upsurged in the global market. By forging or stealing the documents of someone else, criminals try to illegally gain access to different firms. Customer identity verification is mandatory to mitigate the risks of identity theft and scams. Due to insufficient resources, businesses have to face many difficulties in digitally onboarding their clients. Online document verification can be used as the ideal solution to combat these predicaments. Moreover, businesses can easily comply with the regulations imposed on the local and global levels.
How to Verify KYC Documents? – A Short Description
FinTech Regulatory authorities such as FATF and FINTRAC have enforced the Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance to counter the prevalent cybercriminals. The financial and non-financial institutions need to verify the identities of their customers before providing access to the firm. It is vital for them to understand how bank verify documents to effectively utilize their resources.
The working mechanism used for the verification of documents are listed below:
- The user is required to submit an image of their identity documents which are further scanned.
- Necessary details are extracted by using the technology of OCR.
- Information is validated by cross-matching it to ensure secure onboarding.
- Verification results are displayed which are stored in the back office later on.
- If the customers are proven to be real clients, they can continue their onboarding process. On the other hand, those who consist of any unmatched record or tampered document are rejected before they could perform any action.
Different Kinds of Document Frauds
Illicit crimes such as identity theft and illegal edits made to the documents have provoked an alarming situation for businesses. Uplifting a customer’s satisfaction level can benefit the company in multiple ways.
According to PR Newswire, 84% of companies who work on improving their customer’s experiences are more inclined to generate profitable revenues. Therefore, in such a competitive market, businesses can’t afford any mistakes. It is significant for them to protect their customers from becoming a target of prevalent scams. Some of the most common document frauds are discussed below:
Modified Documents
Originals documents that are altered to perform editable actions are known as modified documents. These types of documents usually comprise two forms:
- Forged Documents
Fraudsters generally change the details in the documents according to their desire. It could be modified wholly or partially altering the identity information. It may consist of adding variable data, removing or inserting any pages, or applying false watermarks. The picture posted on the ID document can also get forged by using digital software.
- Blank-Stolen Documents
Fraudsters misuse the blank templates of government-issued documents by leaking them. After which they fill in their desirable information to gain illegitimate access to firms.
Illegitimate Documents
While modified documents may be altered but illegitimate files are created by the fraudsters. This type of document fraud is also commonly known as false documents. It includes the following three kinds:
- Counterfeit Documents
Templates are available on which fraudsters enter fake information and apply false pictures. These kinds of templates can be illegally purchased.
- Compromised Documents
Various samples or images of government-issued documents are available on the internet. Any document shared on the web, television or any platform will fall under this category.
- Camouflage Documents
In these types of records, fraudsters usually devise fake authorities which do not exist in the real world. These are fake entities that are not allowed to issue documents.
Falsely Represented Documents
Records that might be original or legitimate but do not belong to the person presenting them are known as false represented documents. These types of frauds are difficult to be detected. So, Identity verification technology can play an integral part in deterring them. They typically come in two forms:
- Fraudulently Obtained Documents
Scammers will lie on their applications in multiple ways. By adding fake information to the original documents, government authorities may issue them access.
- Imposter Documents
Fraudsters may present a document of a deceased person who had a positive record claiming as their own to manipulate the system. Imposter documents are not submitted by the legal holder of the document.
Wrapping it Up
To conclude everything, businesses are looking for reliable solutions for combating fraudsters all over the world. They need to determine the identities of the individuals before onboarding them. Moreover, constant monitoring can also be significant in detecting any suspicious activity. Moreover, individuals with a document verified are more trustworthy. Different types of document frauds are utilized by scammers to impersonate an identity. Striking the right balance in ensuring better customer satisfaction and securing the company is needed. So, Online document verification services are those robust solutions that can provide benefits to the company in all aspects.